theme 4 definitions Flashcards
What are exports?
Goods or services produced in one country being sold in another country.
What are imports?
Goods bought from another economy.
What is specialisation?
Concentrating on a product or service
What is specialisation?
Concentrating on a product or service
focus on what you’re good at
What is GDP per Capita?
GDP per Capita measures the value of GDP per person.
GDP/ population
What is literacy rate?
The rate of people in a country who are able to read.
(Number of literates in a given age range/ age group population) X 100
What is GDP?
Gross domestic product is the value of all newly produced final goods and services produced in an economy within a given time period.
What is FDI?
- Investments from one country into another
- Normally by companies rather than government
- Involves establishing operations or acquiring tangible assets, including stakes in other businesses.
What is import quota?
Import quota is a limit on the total quantity of a product that can be supplied to a market in a given time period.
What is a tariff?
Tariffs increase the relative price of imports, causing a fall in import demand
(additional tax)
What are subsidies?
A domestic subsidy is any form of government financial help to domestic businesses.
What are trade blocs?
Trade blocs are groups of countries in specific regions that manage and promote trade activities.
What is trade liberalisation?
Trade liberalisation involves a country lowering import tariffs and relaxing import quotas and other forms of protectionism.
One of the aims of liberalisation is to make an economy more open to trade and investment so that it can then engage more directly in the regional and global economy.
What is the European Monetary union?
Countries that use the Euro are part of this
Regulated by European Central Bank
