unit 4 key terms Flashcards
globalisation
growth of international trade that has made an increasing no of markets global rather than national
GDP
value of goods and services produced within an economy over a specified period of time
balance of payments
imports = exports
balance of payments deficit
imports outweigh exports
fixed capital formation
economists way of saying investment in long term assets such as roads or buildings
invisible export
the sale of a service to an overseas customer
purchasing power of parity
adjustment income levels to allow for differences in the cost of living
trading bloc
a regional grouping of countries agreeing to free trade and sometimes free movement of labour
inward foreign direct investment
investment into a country such as UK from companies abroad
outward foreign direct investment
investment from a country such as UK
saturated market
one where everyone who wants a product has it so sales can stabilise or slip
liberalisation
minimising rules and regs faced by a business
counter - cyclical
expansionary govt policies to counter a downturn in the economic cycle
structural unemployment
potentially long term unemployment as a fundamental economic shift makes an industry and therefore the skills if its work place obsolete
trade war
economic battle between 2 countries based entirely on protectionist measures such as import quotas
home market
no of customers that can be reached without needing to jump administrative hurdles
single market
dismantling trade barriers within Europe so that all 28 countries can treat the hole region as their home market
pull factors
positive factors overseas that entice a UK business o look outside the UK
push factors
negative factors within the UK that push a UK business to look overseas
outsourcing
contracting another business to perform a business function on your behalf
disposable income
household earnings minus direct taxes such as income tax and national insurance
multinational
a company based in one country but with operations in many
backwards vertical takeover
buying a business in the same industry but at an early stage in the supply chain
joint venture
legal agreement between 2 countries to work together on a specific project
appreciating
the value of a currency increases
capital productivity
the efficiency within which capital is used
depreciation
value of a currency falls
poaching labour
hiring staff trained by others
