Homework 2 Flashcards
Globalisation
The global economy is becoming increasingly interconnected.
BRIC economies
Countries that are experiencing particularly swift growth and are potential powerhouses of the world economy.
MINT economics
Emerging economic giants.
Indicators of economic growth
GDP
Literacy
Health
HDI
Exports
Goods and services sent to another country
Imports
Goods and services bought from another country
Why do we export?
To enter new markets and gain revenue
Why do we import?
To obtain goods and services that are too expensive to be produced in our country
Balance of trade
The difference between the value of exports and imports
Trade deficit
Imports exceed exports
Trade surplus
Exports exceed imports
Specialisation
Where a country focuses on the production of a specific or limited range of products and/or services.
Why do we specialise?
Lowers unit costs
Expertise at something
Helps gain a competitive advantage
FDI
A measure of foreign ownership of land, factories and organisations.
Trade Liberalisation
The reduction and/or removal or trade barriers
