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CASE STUDY TERMS - mock

erikacotton Economics A level English 51 cards

Cards in this deck (51)

  1. 1VALUE ADDEDincrease in market value of goods or services as a result of the production process
    VALUE ADDED=VALUE OF PRODUCTION-VALUE OF INTERMEDIATE INPUTS
  2. 2SUSTAINABLE"enduring" "lasting" "to keep in being"
  3. 3LONG TERM UNEMPLOYEDout of work for at least a year
  4. 4EMPLOYMENT RATEpercentage of the population of working age in full time/part time paid employment
  5. 5HYSTERESISproblem caused by deep recession and persistently high unemployment
    unemployment causing more unemployment
  6. 6STRUCTURAL UNEMPLOYMENToccurs when the demand for labour is less than the supply of labour in an individual labour market
  7. 7REAL INCOMEmeasures purchasing power of a given amount of nominal income
  8. 8J-CURVE EFFECTdemonstrates time lag between a falling currency and an improved trade balance
  9. 9NET TRADEmeasures a countrys balance of trade
    VALUE OF EXPORTS - VALUE OF IMPORTS
  10. 10GLOBALISATIONdeepening of relationships between countries of the world reflected in an increasing level of overseas trade and investment
  11. 11TERMS OF TRADEvalue of a country's exports in terms of their imports
  12. 12RELATIVE UNIT LABOUR COSTSwage costs per unit of output
    - determined by wage and productivity levels, relative to those in other countries
  13. 13NON-PRICE COMPETITIVENESSquality, design, reliability, performance, service, marketing, branding
  14. 14NON-WAGE COSTS- cost of meeting environmental/health regulations
    - environmental taxes
    - laws
    - pension systems for employees
  15. 15Regionalisation of Tradeincrease in the intensity of trade & investment between countries in the same region
  16. 16intra-regional tradeexchange of virtually identical products between countries within the same region
  17. 17customs unioncountries that operate free trade with each other and impose a common external tariff
  18. 18TRADE CREATIONwelfare gains from lower import tariffs from within the customs union
  19. 19TRADE DIVERSIONwelfare loss from higher import prices from outside the customs union
  20. 20FIXED X-RATE ADVANTAGES- promotes trade & investment
    - adjustment to the fixed currency parity is possible
    - reduction in costs of hedging
    - disciplines domestic producers to keep low prices
    - reinforces gains in comparative advantage
  21. 21FLOATING X-RATE ADVANTAGES- less need for foreign currency reserves
    - useful instrument of macro-eco adjustment
    - partial automatic correction for a trade deficit
    - less currency speculation
    - freedom for dom. monetary policy
  22. 22voluntary export restraintwhere 2 countries make an agreement to limit their exports to one another each year
  23. 23intellectual property lawseg. patents and copyright laws
  24. 24domestic subsidiesstate aid for domestic businesses facing financial problems
  25. 25A RISE IN NET INWARD MIGRATION: benefits- increase in size of the active labour supply
    - increase in aggregate demand
    - positive effects on LR aggregate supply
  26. 26RISE IN NET INWARD MIGRATION: risks- increased welfare costs eg. healthcare
    - displacement of domestic workers
    - social tensions
    - rising demand for houses = rise in prices
    - may worsen level of relative poverty in society
  27. 27economic growthsustained rise in a country's productive potential and real national output
  28. 28sources of economic growth in CHINA- real GDP growth
    - increasing capital & labour inputs
    - rising factor productivity
    - improved human capital
    - improved allocative efficiency
    - productivity enhancing effects of innovation
  29. 29HDI (human development index)combines outcomes that might be valued in the development process
    -life expectancy
    -adult literacy rate
    -% enrolled in prim/secon/terti education
    -GDP per capita in US$ at PPP
  30. 301.high HDI 2.medium HDI 3.low HDI1. 0.8 and above
    2. between 0.5 and 0.8
    3. less than 0.5
  31. 31Benefits of Globalisation1. greater specialisation in production
    2. greater labour migration
    3. development of global brands
  32. 32OFFSHORINGTransferring part of the process to another country. Production may be outsourced or may be undertaken by the same firm but in another country.
  33. 33OUTSOURCINGsubcontracting part of the production process to another similar firm
  34. 34The GINI-COEFFICIENTThe Gini coefficient condenses the income distribution for a country into a single number between 0 and 1: the higher the number, the greater the degree of income inequality
  35. 35Comparative Advantagewhere one country produces a good or service at a lower relative opportunity cost than others
  36. 36Crowding outwhen gov. borrowing reduces the funds available for private sector investment/raises cost of investment by increasing interest rates
  37. 37Economic Cyclefluctuations in the level of economic activity as measured by GDP.
    4 stages: recession, recovery, boom & slowdown
  38. 38Economic Integrationrefers to the process of blurring the boundaries that separate economic activity in one nation state from that in another
  39. 39Dis-economy of scaleincrease in LRAC caused by an increase in the scale of production
  40. 40Absolute advantagewhere one country is able to produce more of a good or service with the same amount of resources, such that the unit cost of production is lower
  41. 41Capital intensive productionwhere production of a good or service requires a large amount of capital relative to other factors of production
  42. 42Fixed exchange ratesystem in which the value of one currency has a fixed value against other countries
  43. 43Floating exchange ratesystem whereby the price of one currency expressed in terms of another is determined by forces of supply and demand
  44. 44Foreign currency reservesforeign currencies held by central banks in order to enable intervention in the FOREX markets to affect the country's exchange rate
  45. 45FDIinvestment made by multinational corporation in a country other than where its operations originate
  46. 46Austerity measuresrefer to the measures taken by governments to reduce expenditures in an attempt to shrink their growing budget deficits
  47. 47ECONOMIC RECOVERYa period of time when REAL NATIONAL OUTPUT rises in at least 2 consecutive quarters
  48. 48ANNUAL RATE OF GROWTHrate of change in growth over a 12 month period
  49. 49Global brandsVisible characteristic of globalisation.
    Often a product can be bought and sold across the globe. It's also a standardised product.
  50. 50Global sourcingways in which global companies now source their operations through worldwide production
  51. 51—

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A level Economics Flashcards on CASE STUDY TERMS - mock, created by erikacotton on 11/12/2015.
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