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
brownfield fdi
buying an existing business in a foreign country
specialisation
when businesses produce a limited range of products
liberalisation
minimising the rules and regulations faced by businesses, or on a global scale, reducing the barriers to freely moving international trade
regulations
rules created as a result of laws passed by parliament
MNCs, multi national corporation
a large business that trades in more than one country
world trade organisation
exists to reduce barriers to trade and ensure that countries keep to the agreements they have made
LEDC
less economically developed country
TNC
transnational corporations
migration
the movement of people fro one place to another with the intention of settling in the new location
protectionism
economic policy of restricting trade between states through methods such as tariffs on imported goods, quotes
tariff
a tax on imports or exports
domestic
the home country
import quotas
a physical limit on the quantity of a good imported or exported
trade barriers
government imposed restrictions on international exchange of goods or services
technical barriers to trade
technical regulations and standards that set out specific characteristics of a product before it enters the market place
subsidies
money given to local producers to make their goods cheaper on the domestic market
counter-cyclical
expansionary government policies to counter a downturn in the economic cycle
keynesian
an economic policy based on the views of British economist John Maynard Keynes, who urged governments to take action to boost economies when hit by recession
structural unemployment
potentially long term unemployment as a fundamental economic shift makes an industry and therefore the skills of its workers obsolete
trade war
an economic battle between two countries based entirely on protectionist measures such as import quotas
home market
the number of customers that can be reached without needing to jump administrative hurdles
single market
dismantling trading barriers within Europe so that all 28 countries can treat the whole region as their home
ASEAN
association of south eastern asian nations
NAFTA
North American free trade area
APEC
asian-pacific economic cooperation, a regional economic forum established in 1989 to leverage the growing interdependence of the Asia-pacific
