Edexcel Economics 9. International Economics

Description

Term

A measure of the strength of sterling relative to a weighted average of the exchange rates of the UK's trading partners, seeing a significant drop in 2008

The relationship between interest rates and demand for currency, as investors will wish to buy financial assets in that country to gain a good return, ceteris paribus

That which can be caused by unemployment (perhaps due to too high a working age population for the economy to sustain), low wages or surplus produce to sell, low or no state benefits, poor access to childcare, poverty traps, etc.

That the lack of which on certain products may not stop a country producing them in an effort to support industries which may develop it in future as well as to protect strategic industries, and mitigate the risks posed by external shocks from over-specialisation

That which the total balance of payments should always equal

Where financial institutions become unwilling to lend money due to perceived increased risks, lowering consumers' ability to spend, and firms' ability to invest, placing downward pressure on aggregate demand

An exchange rate fixed by an agreement between two or more economies by the central bank buying and selling currencies as appropriate, thus negating the fluctuations of supply and demand

Limits set on imports of particular products

A percentage value taken from the Gini Coefficient to calculate income inequality by measuring the ratio of the area between a country's Lorenz Curve and the equality line to the whole area under the equality line, a higher percentage corresponding to greater inequality

A ratio comparing the export prices paid by a country with the price it has to pay for its imports, being either positive or negative, calculated as 100×(average price of exports÷average price of imports)

Description

Term

An account identifying transactions in goods and services between the residents of a country and the rest of the world, together with income payments and international transfers (such as EU contributions)

That which increased during the mid-1970's to mid 1980's in around half of countries including the UK according to a 2002 study by the OECD, though with no discernible trend since

A set of trading arrangements in which a group of countries remove barriers to trade amongst themselves, adopt a common set of barriers against external trade, establish common tax rates and economic regulations, allow free movement of factors of production, and have common public sector procurement policies

The five countries which comprised the UK's top import origins in 2017 in descending order

The income of the individual in the middle of the income distribution (i.e. 30 of 60), much better as a measure of such as it takes into account the number of people earning very high and very low incomes

That which might be caused by import restrictions or devaluation as the prices of domestic products may increase due to less supply, competition, and increased productions such as imported raw materials

The theory that there may be gains such as in world output from trade when countries or individuals specialise in the production of goods or services in which they have a comparative advantage

That the benefits of which to members is much determined by the proportion of their trade that is with other members, and the extent of their pre-existing integration

That the potential benefits of which are that reduced transaction costs and exchange rate uncertainty can increase monetary efficiency, thereby encouraging trade between members leading to exploitation of comparative advantage and economies of scale

The population arranged into hierarchies of ten equally sized groups as opposed to quintiles which arrange it into five, quartiles into four, etc.