globalisation glossary Flashcards
growing economies
countries that have growth prospect that are higher than average
globalisation
the growth of international trade that has made an increasing number of markets globals rather than national
gross domestic product
the value of all the goods and services within an economy over a specified time-period such as a year
gdp per capita
looking at data per head of population, to make it easier to compare statistics from countries of different size
purchasing power parity
adjusting income levels to allow for differences in the cost of living
balance of payments deficit
imports outweighs exports, if it continues indefinitely it means ever greater build up of foreign currency debt
fixed capital formation
an economists way of saying investment in long term assets, such as roads or buildings
invisible export
the sale of a service to an overseas customer
free trade
when countries can export to each other without hurdles such as import taxes or import quotas
trading bloc
a regional grouping of countries agreeing to free trade and sometime free movement of labour
foreign direct investment
when a company either sets up a new business abroad or where a company takes over or merges with another business abroad
inward foreign direct investment
investment into a country such as the uk from companies abroad, perhaps in the form of buying up one of our businesses, or buying up property assets
outward direct investment
investment from a country such as the uk, perhaps building a factory in Brazil or buying property in Nairobi
saturated market
a market where everyone who wants an item already has it, so sales can stabilise or slip back
scientific management
a type of management where managers should maximise worker productivity by calculating how best to divide up tasks into smaller fragments, then incentivise workers to produce exactly as set out by managers
Greenfield fdi
building a new factory or business in a foreign country
