International trade and access to markets

Question 1

Agglomeration

Answer 1

When companies in similar industries locate near to each other because of the the benefit gained by being able to share ideas and resources - called ‘agglomeration economies’.

Question 2

Embargoes

Answer 2

Partial or complete bans on trade with particular countries/bodies. Usually for political matters rather than commercial

Question 3

Fair trade

Answer 3

A social movement that aims to help agricultural producers in LIC/NEEs gain better trading deals and promote sustainability

Question 4

Free market

Answer 4

An economic system without intervention from governments or price-setting. This is the aim of the WTO

Question 5

G20 group

Answer 5

International forum for the governments and central banks of 20 major economies, the EU is one member and it aims to give a greater voice to the less developed of the large economies as the WTO was not seen to be doing this

Question 6

G7 group

Answer 6

International forum of Canada, France, UK, US, Germany, Japan, Italy. These countries represent more than 64% of net global wealth. Very high HDI and wealth is required to be a member

Question 7

Glocalisation

Answer 7

When a product, service or company is marketed to local tastes but it is sold globally e.g. Halal McDonald’s products

Question 8

Group of 77

Answer 8

A UN coalition of 135 developing countries (although it does include China as it was formed in 1964). It aims to give an enhanced negotiating power to these countries

Question 9

Horizontal integration

Answer 9

When companies diversify their operations by expansion, merger or takeover.

Question 10

Import licence

Answer 10

A licence issied by a national government authorising the import of goods from somewhere

Question 11

Import quota

Answer 11

A limit on the quantity of a particular product that can be imported

Question 12

LDCs

Answer 12

Least developed countries. LICs that face severe structural impediments to sustainable development and are highly vulnerable to economic and environmental shocks. There are currently 47 which can access exclusive international support measures in development and trade assistance

Question 13

Mercosur

Answer 13

Formed in 1991. A similar functioning to the EU but for Brazil, Argentina, Paraguay and Venezuela (suspended) (Bolivia and Ecuador have applied to join)

Question 14

Multiplier effect

Answer 14

When an initial injection of money into an economy creates additional income and economic flow

Question 15

Pacific alliance

Answer 15

Similar to Mercosur but for Chile, peru, Colombia, Mexico and does more bilateral agreements. It tends to look east and north

Question 16

RTAs

Answer 16

Regional trade agreements. Reciprocal trade agreements among WTO members, can include free trade agreements and customs unions

Question 17

Special and differential treatment

Answer 17

WTO agreements which contain provisions to give developing countries special rights

Question 18

OECD

Answer 18

Organisation for economic cooperation and developments. Intergovernmental economic organisation with 35 members. Tries to stimulate economic progress and trade. Founded in 1960.

Question 19

Subsidies

Answer 19

Grants or allowances to domestic producers to increase their profitability against imported goods. Over 40% of EU budget goes to subsidies

Question 20

Trade restrictions

Answer 20

Other import restrictions that may include standard regulation or measures to prevent products of exploitation being bought.

Question 21

TTIP

Answer 21

Transatlantic trade and investment partnership. A potential trade deal between the EU and US that could boost the EU economy by €120bn and create millions of jobs. There are however concerns over the food and environmental standards.

Question 22

TPP

Answer 22

Trans-Pacific partnership. An unratified agreement between several countries including the US, Japan, Peru, Chile, Singapore. Trump withdrew from it so it does not exist

Question 23

UNCTAD

Answer 23

UN conference on trade development. A group that works to make sure that globalisation’s benefits are felt more effectively and fairly. They measure progress by the Sustainable Development Goals

Question 24

Vertical integration

Answer 24

When a company’s supply chain is fully owned by that company. Gives them full control. E.g. BP

Question 25

Voluntary export restraints

Answer 25

A diplomatic strategy offered by the exporting country to restrain their exports to appease the importing country and prevent the imposition of restrictions