Globalisation Flashcards
Commodity
a raw material or primary agricultural product that can be bought and sold, such as copper or coffee
Commodity chain
A chain of activities from the manufacturing to the distribution of a product
Trade
The exchange of goods and services in a market
Import
To bring a product into a country to be sold
Export
A good or service produced in the home country and sold in another country
Interdependence
A relationship between countries in which they rely on one another for resources, goods or services
Standard of living
Quality of life based on ownership of necessities and luxuries that make life easier
Outsourcing
A decision by a corporation to turn over much of the responsibility for production to independent suppliers.
Free trade
International trade left to its natural course without tariffs, quotas, or other restrictions
Tariff
A tax on imported goods
GDP
Gross domestic product - The total market value of all final goods and services produced annually in an economy
GNP
Gross National Product - the sum of all goods and services produced in a nation in a year
Developing nations
nations with few industries and simple technology
Industrialized nation
a nation with large industries and advanced technology that provides a more comfortable way of life than developing nations; aslo known as a developed nation
Globalization
The process at which businesses start operating on an international scale
