Edexcel Economics 9. International Economics

Description

Term

A graph showing income or wealth distribution by plotting the cumulative percentages of income earned by the first, first plus second, first plus second plus third, etc. quintiles/deciles, inequality being shown in the space between the curve and the diagonal equality line

Post-tax income plus notional value such as NHS services and state education, being £34,605 on average in the UK in 2016, but £17,178 for the poorest quintile and £63,279 for the richest

That attribute of a country's products, a decrease in which would be likely to result in a fall in the value of the country's currency as domestic and foreign demand for the currency to buy that country's products would decrease, causing firms and households to sell the currency for another, ceteris paribus

Those which are affected by globalisation in that they have access to a wider range of products at lower prices (though where large multinational companies markedly increase market concentration the opposite may occur)

Limits set on imports of a wide variety of products such as to raise revenue, improve the country's balance of payments position, protect many industries, or provide time to sort out structural problems in the economy such as by shifting resources from uncompetitive to competitive industries

A multilateral body founded in 1995 responsible for overseeing the conduct of international trade

A process by which the world's economies are becoming more closely integrated

The trend in financial markets that has much facilitated globalisation, somewhat reversed since the financial crisis

The core theory that increasing income (such as by cutting corporation tax) should create employment which will generate more tax revenue, alleviating poverty and increasing social spending by government, criticised for not adequately considering immobilities, subsistence wages, profit maximisation, etc.

Measures such as deflationary/contractionary policy designed to lower expenditure on all products, whatever their origin, with the aim of thereby reducing imports and encouraging firms to export in the face of a smaller home market

Description

Term

A U-shaped graph showing the Gini coefficient relative to development, demonstrating an increase in inequality as a country starts to develop as income and wealth accumulate amongst a few entrepreneurs, improving later due to trickledown and government intervention

That the position of which is determined by supply and demand, marketing, competition, price elasticity of demand (such as for oil), tariffs, development, and factor endowments

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

Those which are affected by globalisation in that they must increase efficiency due to global competition, while brand variation across countries decreases - such as opal fruits becoming starburst in the UK - so as to take advantage of marketing economies

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

Where countries adopt a common currency

The component of the current account comprising transfers of money in and out of a country such as EU contributions and grants

That country which has tried to improve its terms of trade by developing its diamond cutting and finishing industries so it can export diamonds it mines at higher prices

Countries defined by the World Bank as those with an annual per capita GNI above $12,475

Wealth that consists of those assets that can be bough or sold such as property and shares