THEME 4 DEFINITIONS Flashcards
1
Q
OFFHSHORING
A
- MOVING BUSINESS FUNCTION
- ANOTHER COUNTRY TO LOWER COSTS
2
Q
GDP PER CAPTITA
A
-MEASURE OF TOTAL OUTPUT OF COUNTRY’S ECONOMY
3
Q
PURCHASING POWER PARTY
A
-ADJUSTMENT IN FACTORS IN DIFFERENCES IN COST OF LIVING
4
Q
HUMAN DEVELOPMENT INDEX
A
- PROVIDE SINGLE MEASURE
- ECONOMIC DEVELOPMENT - INCOME, EDUCATION,HEALTH
5
Q
FIXED CAPITAL FORMATION
A
- INVESTMENT IN LONG TERM ASSETS
- ROADS AND BUILDINGS
6
Q
IMPORTS
A
- PRODUCT/SERVICE PRODUCED ABROAD
- CONSUMER DOMESTICALLY
7
Q
EXPORTS
A
- PRODUCTS/SERVICE PRODUCED DOMESTICALLY
- CONSUMERD OVERSEAS
8
Q
FDI
A
FOREIGN DIRECT INVESTMENT
-BUSINESS PURCHASES NON CURRENT ASSET IN ANOTHER COUNTRY
9
Q
GLOBALISATION
A
- TREND
- CLOSER TIES
- ECONOMIES AND BUSINESSES WITHIN GLOBAL ECONOMY
10
Q
ISOLATIONISM
A
- NATION TRADE POLICIES
- DESIGNED TO PUT INTEREST OF DOMESTIC BUSINESS FIRST
- IMPOSE TRADE BARRIER = HAMPER IMPORTS
11
Q
TRADE LIBERALISATION
A
REMOVAL OF TRADE BARRIERS
12
Q
PROTECTIONISM
A
- GIVING PREFERENCE TO DOMESTIC PRODUCERS
- MAKE IT HARDER FOR FOREIGN COMPANIES
- TO EXPORT TO YOUR COUNTRY
13
Q
TARIFF
A
TAX IMPOSED ON IMPORT
ALLOW IT TO ENTER
14
Q
QUOTA
A
PHYSICAL LIMIT ON VOLUME OF PRODUCT THAT CAN BE IMPORTED IN YEAR
QUOTA USED = ONLY DOMESTICALLY PRODUCED
15
Q
SUBSIDY
A
- PAYMENT MADE BY GOVERNMENT
- TO BUSINESS PRODUCING CERTAIN PRODUCT/LOCATED IN PARTICULAR AREA
- GOV WISHES TO SUPPORT
