Unit 3 Flashcards
Easing why supply curve slope upwards
Producers get more profit per unit/profit motive so they are willing to sell more
Higher prices make producing more profitable so new producers might enter the market/ current producers will move resources
Advantages of global trade
Offers consumers wider variety of goods that apcant be produced in their country
Cheaper and higher quality goods
Disadv of global trade
Greater unemployment due to more competition of bigger firms
Smaller businesses have to close as can’t compete with bigger businesses
Dumping - other countries can sell large amounts of cheap products in your country to gain market share
Barriers to trade
Tarifas this is a tax on imports to limit the number of goods entering limited
Quota this is a set limit of how many of thst good can enter the country
Define exchange rate
An exchange rate is the price of one currency in terms of another
An appreciation or strengthening of the exchange rate means £1 buys you more dollar and a depreciation or weakening means £1 buys you less dollar
This means that strengthening less exports
.
Advantages of using the euro
Stable exchange rate
Price transparency as it’s easier to compare prices with other country
Disadvantages of using euro
Loss of monetary independence as uk would no longer control interest rate
Characteristics of a developing country
Low gdp per capita
Lack of infrastructure
Poor literacy rate
Characteristics of emerging economy
Rapid economic growth
Increasing standards of living
Improved infrastructure
Characteristics of developed countries
Sustained economic growth
Hugh life expectancy
High literacy rate
Types of aid given to developing countries
Free trade
The supplies of schools supplies
Emergency aid so for example food if there’s a flood
How can households plan for financial uncertainty
Save more spend less
A Scottish import
Oranges
How can government create economic growth
Improve education
Build new infrastructure
