Theme 4 Flashcards
(39 cards)
emerging economies
countries with growing but low to middle average income per person.
GDP per capita
the total value of output in an economy at a certain period of time. this is calculated by: national income/population.
human development index (HDI)
a measure of economic growth that measures economic progress through the achievement of people rather than simply through income and growth figures.
international trade
the exchange of goods and services between countries.
FDI
Investment made by a foreign company in the economy of another country.
globalisation
increased integration and interdependence of international economies leading to a world market.
trade barriers
government actions that limit the free movement of goods and services between countries.
trade liberalisation
process of removing barriers to trade to encourage the free movement of goods and services between countries.
protectionism
policies imposed by governments to restrict free movement of goods between countries.
tariffs
taxes placed on imported goods that are not applied to domestic goods.
quotas
the physical limit on the volume of imports entering a country.
embargoes
a total ban on imported products.
subsidies
government payments to domestic firms to reduce production costs and improve competitiveness.
trading blocs
economic units formed when the governments of a group of countries agree to trade together freely (e.g. with no trade barriers)
the EU
an economic and political partnership between 28 european countries to create economic cooperation, peace stability and prosperity.
saturated market
when nearly all potential customers already have the product a business sells, or a close substitute.
off-shoring
when a business relocates production to another country.
outsourcing
when a business uses the services of another organisation (e.g. a production plant)
disposable income
the amount of income an individual has available to spend after income tax and other statutory payments.
infrastructure
physical systems that a country or business require to operate effectively (e.g. transport, communication, utilities)
global merger
when two or more businesses join together beyond the boundaries of a specific country.
joint ventures
when two or more businesses agree to act collectively to set up a new business venture.
global competitiveness
the ability of a business to compete in international markets in order to become a leader in a given industry.
global market
a market that targets all of the world’s economies rather than individual countries.
