homework 2 Flashcards
what is meant by globalisation?
when companies are willingly trading with each other.
what is meant by economic growth?
when the country can overall produce more meaning it can earn more money for its occupants.
what is a MINT economy?
these are economies such as Mexico, Indonesia, Nigeria, Turkey
what is meant by an emerging economy?
an economy that is turning into a developed economy and has high rates of growth (china)
what is meant by offshoring?
when a business relocates all or parts of its operations to another country.
what are the indicators of economic growth?
gross domestic product (gdp), literacy, health, human development index (hdi)
what is the human development index?
HDI measures whether a country is developed or under developed based on things like education, life expectancy and gross domestic product
what is meant by imports?
when things from other countries are brought into the country
what is meant by exports?
when things are sold to other countries.
what is meant by trade surplus?
when exports are greater than imports
what is meant by trade deficit?
when imports are greater than exports
what does specialisation mean?
when a country focus on the production of a specific good?
what does FDI mean?
when a company decides to set up in a foreign country
what is liberalisation?
the reduction of restrictions on international trade
what are some of the factors that lead to globalisation?
political factors and reduced cost of transport communication
