F585 Definitons Extract 3 & 4

Question	Answer
World Trade Organisation (WTO)	an international body responsible for negotiating trade agreements and 'policing' the rules of trade to which its members sign up. Trade disputes between members are settled by the WTO
Globalisation	the process creating ever-closer links between different economies
comparative advantage	the ability to produce goods at a relatively lower opportunity cost that competing countries, regions, firms
European Union (EU)	an association between 27 European member states seeking economic and political co-operation and integration deepens integration in a single market, centralising economic policy at the macroeconomic level
Development	the process of improving individual economic well-being and quality of life across all sections of an economy
Developed Economy	a country with a high per capita income and modern secondary and tertiary sectors
Developing Economy	a country with a low per capita income, and undeveloped secondary and tertiary sectors
Inter-industry Trade	trade involving the exchange of goods and services produced by different intustires
Intra-industry Trade	trade involving the exchange of goods and services produced by the same industry

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	Created by Milikani Moyo over 10 years ago