International trade and globalisation

Question 1

Globalization

Answer 1

the process by which the world is becoming increasingly interconnected through trade and other links

Question 2

Quota

Answer 2

a limit placed on imports and exports

Question 3

Embargo

Answer 3

a ban placed on imports and exports

Question 4

Infant industries

Answer 4

new industries with relatively low output and high cost

Question 5

Declining industries

Answer 5

old industries that are going out of business

Question 6

Foreign exchange rate

Answer 6

the price of one currency in terms of another currency or currencies

Question 7

Fixed exchange rate

Answer 7

an exchange rate whose value is set at a particular value in terms of another currency or currencies

Question 8

Devaluation

Answer 8

a fall in the value of a fixed exchange rate

Question 9

Revaluation

Answer 9

a rise in the value of a fixed exchange rate

Question 10

Floating exchange rate

Answer 10

an exchange rate which can change frequently as it determined by market forces

Question 11

Appreciation

Answer 11

rise in the value of a floating exchange rate

Question 12

Depreciation

Answer 12

a fall in the value of a floating exchange rate

Question 13

Trade in goods

Answer 13

the value of exported goods and imported goods

Question 14

Trade in goods deficit

Answer 14

expenditure on imported goods exceeding revenue from exported goods

Question 15

Trade in goods surplus

Answer 15

revenue from exported goods exceeding expenditure on imported goods

Question 16

Trade in services

Answer 16

the value of exported services and imported services

Question 17

Trade in services deficit

Answer 17

expenditure on imported services exceeding revenue from exported services

Question 18

Trade in goods surplus

Answer 18

revenue from exported services exceeding expenditure on imported services

Question 19

Primary income

Answer 19

income earned by people working in different countries and investment income which comes into and goes out of the country

Question 20

Secondary income

Answer 20

transfers between residents and non-residents of money, goods or services, not in return for anything else

Question 21

Current account balance

Answer 21

a record of the income received and the expenditure made by a country in its dealings with other countries