globalisation and trade

Question 1

Globalisation

Answer 1

The process of increasing economic integration of the world’s economies

Question 2

World Trade organisation

Answer 2

An international body whose parkours is to promote free trade by persuading countries to abolish Import tariffs and other barriers to trade. As such it has become closely associated with globalisation

Question 3

Multinational corporations

Answer 3

Enterprises operating in several countries but with their headquarters in one country

Question 4

Less developed economies

Answer 4

Country is considered behind in terms of their economy, human capital, infastructure and industrial base
(Economies with low income per capita and less development in terms of human capital and infrastructure)

Question 5

More developed economies

Answer 5

Countries with a high degree of economic development, high average income per head, high standards of living, usually a service industries dominating manufacturing and investment having taken place over many years in human capital and infrastructure

Question 6

European Union

Answer 6

An economic and partially political union established in 1993. It developed as a more closely integrated organisation from the European Union community. The EU has expanded to include 27 countries

Question 7

Containerisation

Answer 7

The use of uniform sized containers for transportation of goods which significantly reduces the cost of transport through increased efficiency

Question 8

Outsourcing

Answer 8

Part of a thumbs production is performed by another firm

Question 9

Absolute advantage

Answer 9

The country has absolute advantage if it can produce more of a good than other countries from the same amount of resources

Question 10

Comparative advantage

Answer 10

This is measured in terms of opportunity cost, the country with the least opportunity cost when producing a good possesses a comparative advantage in that good

Question 11

Tariff

Answer 11

A tax on imported goods and services

Question 12

Protectionism

Answer 12

Implementing policies to protect an economy through reductions on imports

Question 13

Custom unions

Answer 13

A customs union is an agreement between two or more neighboring countries to remove trade barriers, reduce or abolish customs duty, and eliminate quotas.

Not as closely integrated as a single or common market
The country is joined together to eliminate all trade barriers but are not able to trade freely with countries outside of the Customs Union

Question 14

Single Or common market

Answer 14

Deep integration common prices regulation free movement of labour capital for example someone working in Spain is able to freely go and work in France

Question 15

Economic integration

Answer 15

Process whereby countries coordinate to reduce trade barriers and to harmonise monetary and fiscal policy

Question 16

Trading bloc

Answer 16

A group of countries that join together and agree to increase trade between themselves

Question 17

Bilateral or multilateral trade agreements

Answer 17

Agreement to reduce tariffs and quotas between two or multiple countries

Question 18

Economic and Monetary Union

Answer 18

Same currency same central bank same monetary policy for example eurozone

Question 20

Absolute advantage

Answer 20

When an economy is able to produce greater quantify of out put with the same amount of Input

Question 21

Comparative advantage

Answer 21

When an economy is able to produce a greater
Quantity of output at a lower opportunity cost

Question 22

Economics development

Answer 22

Assessing the standards of living and economic welfare of those in a country

Question 23

Quota

Answer 23

A limit in the amount of a good that can be imported in to a country

Question 24

Trade creation

Answer 24

Creation of trade between members with in a bloc

Question 25

Trade diversion

Answer 25

Diversion of trade between. Country in a bloc and efficiency countries out side a bloc to less efficient countries with in a bloc

Question 26

Trade liberalisation

Answer 26

Reduction or removal or protectionist policies

Question 27

WTO

Answer 27

international organisation that aims to make trade as free as possible discussing trade a few ends and sets f trade disputes