Unit 6 International Trade and Globalisation

Question 1

Globalisation

Answer 1

the process by which the world is becoming increasingly interconnected through trade and other links

Question 2

Quota

Answer 2

a limit placed on imports and exports

Question 3

Embargo

Answer 3

a ban placed on imports and exports

Question 4

Exchange control

Answer 4

a limit on the amount of foreign currency that can be obtained

Question 5

Infant industries

Answer 5

new industries with relatively low output and high cost

Question 6

Declining industries

Answer 6

old industries which are going out of business

Question 7

Strategic industries

Answer 7

industries that are considered important for the survival or development of the country

Question 8

Foreign exchange rate

Answer 8

the price of one currency in terms of another currency or currencies

Question 9

Fixed exchange rate

Answer 9

an exchange rate whose value is set at a particular value in terms of another currency or currencies

Question 10

Devaluation

Answer 10

a fall in the value of a fixed exchange rate

Question 11

Revaluation

Answer 11

a rise in the value of a fixed exchange rate

Question 12

Floating exchange rate

Answer 12

an exchange rate which can change frequently as it determined by market forces

Question 13

Appreciation

Answer 13

a rise in the value of a floating exchange rate

Question 14

Depreciation

Answer 14

a fall in the value of a floating exchange rate

Question 15

Trade in goods

Answer 15

the value of exported goods and imported goods

Question 16

Trade in goods deficit

Answer 16

expenditure on imported goods exceeding revenue from exported goods

Question 17

Trade in goods surplus

Answer 17

revenue from exported goods exceeding expenditure on imported goods

Question 18

Trade in services

Answer 18

the value of exported services and imported services

Question 19

Trade in services deficit

Answer 19

expenditure on imported services exceeding revenue from exported services

Question 20

Trade in goods surplus

Answer 20

revenue from exported services exceeding expenditure on imported services

Question 21

Primary income

Answer 21

income earned by people working in different countries and investment income which comes into and goes out of the country

Question 22

Secondary income

Answer 22

transfers between residents and non

Question 23

Current account balance

Answer 23

a record of the income received and the expenditure made by a country in its dealings with other countries