Edexcel Economics 9. International Economics

Description

Term

That a prime example of which is a tobacco tax as more unskilled workers smoke, with cigarettes absorbing a higher proportion of their income than those higher earners that do

The component of the current account comprising that which is earned by a country from investment overseas such as profits from Tesco supermarkets in Asia

That the four components of which are trade in goods, trade in services, income, and current transfers

Measures besides tariffs imposed by government that have the effect of inhibiting international trade such as quality controls, especially where set very high with the intention of deterring foreign imports

That the disadvantages of which are the there can be wild fluctuations in the exchange rate, causing uncertainty and inflationary pressure, potentially reducing trade and foreign direct investment (FDI), while fluctuations can push up wages as workers will not agree to pay cuts just because the exchange rate rises and thus import prices fall

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

That country the current account balance of which reached its largest ever nominal deficit in 2019 at -£37bn, recovering to -£15bn in the third quarter

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 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.

When an individual's disposable income falls when they gain higher wages or more hours due to having to pay more tax and losing benefits

Description

Term

In a fixed exchange rate, a deliberate act by government to raise the value of its currency in terms of another

That the effects of which are that educational attainment falls (not having books, a computer, access to school trips of university, etc.), mental and physical health deteriorate (healthy foods are unaffordable, while some turn to addictive substances for comfort), and there is decreased access to entertainment and transport services, etc.

That the most controversial aspect of which is the presence of a fixed exchange rate/single currency, as where an individual country is in a different stage of the economic cycle such as recession, it is no longer able to use monetary policy to address it such as Greece during the financial crisis

A relatively small account identifying transactions in (physical) capital (such as land or copyrights) between the residents of a country and the rest of the world, the largest portion of which is as a result of migration

That which is often worsened in the least developed countries as there is large scale corruption while state institutions are not sophisticated enough to intervene effectively

Disposable income minus indirect taxed

That theory which does not consider the law of diminishing marginal returns in the short run or economies and diseconomies of scale in the long run

A condition that states that for devaluation to successfully improve the trade imbalance, the combined price elasticities of demand for exports and imports must exceed one, i.e. be relatively elastic, as must the elasticity of supply of exports

The average productivity of all factors, measured as the total output÷the total amount of inputs used, difficult to measure as the measurement of capital stock is prone to error and misinterpretation

The ability to produce a product more cost efficiently than a competitor such as with less labour costs