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Economics > Theme 4 Slattery > Flashcards

Theme 4 Slattery Flashcards

1
Q

What is globalisation

A

Interdependence of world economies for trade and this includes people, products and ideas

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2
Q

Drawbacks for globalisation

A

-increase in the concept of robots so less work
-pollution
-inflation

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3
Q

Benefits of globalisation

A

-China benefitted through taking jobs in the USA
-spread health improvement
-more choice for children

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4
Q

Terms of trade

A

How many exports we have to sell our imports

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5
Q

Terms of trade equation

A

Index of export prices
——————————- X 100
Index of import prices

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6
Q

Factors influencing costs of imports and exports

A

-exchange rate
-inflation
-productivity
-the added value
-whether goods are elastic or inelastic

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7
Q

Trading bloc

A

These are created to encourage trading partners to buy and sell goods amongst its members. More favourable trading conditions offered to members and there is often less favourable trading conditions offered outside the bloc

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8
Q

Benefits of the EU

A

-enables goods, services, money and people to move freely throughout most of the continent. Currently been 70 years of peace showing that it does work.

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9
Q

Problems of the EU

A

-takes away firms incentive to invest in technology
-not all members have equal economies
-brain drain

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10
Q

Advantages of trading blocs

A

-firms compete each other
-economies of scale
-increased foreign investment

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11
Q

Disadvantages of trading blocs

A

-competition for weaker countries
-interdependence
-trade diversion

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12
Q

protectionism

A

protecting domestic market from foreign goods and services

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13
Q

6 ways to use protectionism

A

-quality of standards (making them high)
-admin and red tape (make it difficult)
-subsidies (to domestic firms)
-embargos (a ban)
-tariffs (tax)
-quotas (limited amount)

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14
Q

evaluation of tariffs

A

-retaliation
-trade war
-damage specific industries

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15
Q

what is a quota

A

allowing in a specific agreed quantity of imported goods into your country

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16
Q

what do quotas do

A

-ensure that parliament truly reflect the population it represents
-help regulate the volume of trade between them and other countries
-they safe guard local jobs and industries
-they can benefit local industries

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17
Q

absolute poverty

A

living less than $2 a day

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18
Q

relative poverty

A

households receive 50% less than average household incomes

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19
Q

causes of poverty

A

-poor education in the area
-lack of employment in the area
-lack of infrastructure

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20
Q

impacts of poverty

A

-higher crime rates
-high unemployment
-investments within the economy are reduced

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21
Q

Case study for poverty

A

South Sudan.

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22
Q

Population of South Sudan

A

10.75 million

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23
Q

GDP per capita of South Sudan

A

1,070 USD

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24
Q

What is significant about South Sudan

A

They are a landlocked country. They import most items meaning the inflationary prices of imports are pushed onto the consumers.

25
Q

what is the lorenz curve

A

it is a graphical representation of income/wealth distribution and it shows that not everyone earns the same % of income in comparison to % of population

26
Q

gini coefficient

A

section A / section A + B

27
Q

harod - domar model

A

–> increased savings –> increased investment –> higher capital stock –> higher economic growth –>

28
Q

what is international aid

A

any form of needed assistance by one country to another

29
Q

how does aid relate to the harod domar model

A

aid becomes the savings which then becomes the investment for the country to rebuild

30
Q

criticisms of aid

A

-creates a dependency culture
-corruption
-creates a pity culture rather than a planning culture

31
Q

debt relief

A

cancelling the debt of developing countries

32
Q

criticisms of debt relief

A

-undemocratic
-no legal obligation on private creditors to cancel debt
-6 year program is too long

33
Q

the lewis model

A

moving surplus unproductive labour from rural areas into the cities:
-building economy based on productive manufacturing which eventually moves to services related economy

34
Q

the lewis model picture

A
35
Q

advantages of the lewis model

A

-economic growth stimulated
-reduces unemployment
-increases efficiency

36
Q

disadvantages of the lewis model

A

-higher inequality gap
-geographical immobility
-decreased living standards

37
Q

(Industrialisation in South Korea) population of South Korea

A

51.74 million

38
Q

key exports of South Korea

A

electrical machinery, cars

39
Q

gdp per capita in South Korea

A

$34,997.78 USD

40
Q

positives about South Korea industrialisation

A

-education
-lots of jobs
-subsidies
-productivity

41
Q

negatives about South Korea industrialisation

A

-no entrepreneurship
-export driven economy
-diseconomies of scale

42
Q

why might South Korea’s method of industrialisation not work for all countries

A

For example, central african republic don’t have the same amount of population.

43
Q

Primary product dependency

A

when a country over depends on the production and export of a primary sector product (oil, metal, sugars, gold etc)

44
Q

disadvantages of primary product dependency

A

-limited resources
-prices often volatile due to economic demand

45
Q

benefits of an oil based economy such as Angola

A

-oil can provide extensive revenue still which could be used back as investment
-oil is extremely inelastic

46
Q

problems with oil based economy such as Angola

A

-very few jobs created
-low investment in other industries
-oil is non renewable

47
Q

advantages of primary product dependency

A

-attracts fdi
-source of economic growth

48
Q

who type of consumer does tourism aim for

A

high income consumers

49
Q

How much total GDP in 2019 did Kenyan travel and tourism industry represent

A

8% of total GDP was represented by Kenyan travel and tourism industry represent

50
Q

negative economic impacts

A

-infrastructure cost
-seasonal character of jobs

51
Q

what is Microfinance

A

allows people to take on reasonable small business loans safely. This promotes enterprise

52
Q

who does Microfinance target

A

women, low income and those living in rural economies

53
Q

(microfinance) population of Bangladesh

A

170 million

54
Q

(microfinance) GDP per capita

A

$2,457.92 USD

55
Q

(microfinance) mean age in Bangladesh

A

27.1 years old

56
Q

microfinance in Bangladesh evidence

A

Bank has helped 7,000 micro lenders with 25 million clients lending money to new entrepreneurs that previously had limited finance. chance for new economic growth

57
Q

positives of microfinance in Bangladesh

A

UK and US welcomes micro-lending institutions for their own impoverished populations

58
Q

negatives of microfinance in Bangladesh

A

entrepreneurs can’t make the most out of the loan as they lack basic business skills

Economics (7 decks)

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