Fichas
Theme 4: A global perspective keywords
Fichas del conjunto (23)
- 1Absolute advantagea country can produce more of a good and at a lower cost, using the same resources, compared to another country
- 2Comparative advantagea country can produce a good at a lower opportunity cost than another country
- 3Biliterate trade agreementA deal signed by two countries, who decided on preferential rules for trade between them
- 4Preferential trade areas (PTAs)A trade pact between countries that reduces tariffs for certain products to the countries who sign the agreement. While the tariffs are not necessarily eliminated, they are lower than countries not party to the agreement.
- 5Free trade areaWhen two or more countries in a region agree to reduce or eliminate barriers to trade on all goods coming from other member
- 6Customs unionsinvolves the removal of tariff barriers between members, plus the acceptance of a common (unified) external tariff against non-members
- 7Common marketMember countries trade freely in all economic resources
All barriers to trade in goods, services, capital, and labour are removed.
Non-tariff barriers are reduced and eliminated
Significant level of harmonisation of micro-economic policies, and common rules regarding monopoly power and other anti-competitive practices. - 8Monetary unionAll member countries adopt a single currency
- 9Foreign Direct InvestmentInvestment by one country into another country
- 10Free tradeThe exchange of goods between countries without trade barriers
- 11GlobalisationIncrease in economic and cultural integration and independence between individual countries
- 12ProductivityThe rate at which goods and services are produced using the same level of resources
- 13QuotasLimits set on the quantity imported
- 14Specialisationusing all resources to produce on e good, in which it has comparative advantage
- 15SubsidiesGrants usually given by the government to encourage production of export goods
- 16TariffsTaxes imposed on imports
- 17Terms of tradeRatio of export prices to import prices
- 18Theory of comparative advantageEven if one country can produce both goods at low cost, it is beneficial for that country to trade with another country that has a lower opportunity cost in the production of one of the goods
- 19TradeThe exchange of goods and services between countries
- 20Trade liberalisationRemoving trade barriers and promoting free trade
- 21Trade blocA group of countries that sign a pact to trade goods with each other without imposing any trade barriers
- 22Transnational companiesFirms that operate in more than one countries
- 23World trade organisationAn international organisation that facilitates free trade globally
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- A level Economics Fichas sobre Theme 4: A global perspective keywords, creado por Leo Crellin el 14/10/2018.
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- Leo Crellin
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