Edexcel Economics 9. International Economics

Description

Term

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

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

Trade among members of a trading bloc or within a specific region

The current trade negotiation round of the World Trade Organisation, beginning in 2001, but stalled since 2014 over a 2008 breakdown regarding differential treatment and agricultural subsidies between developed countries (Canada, the EU, Japan, and the USA) and developing countries (Brazil, China, India, and South Africa)

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

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

Countries defined by the World Bank as those with an annual per capita GNI below $1,026

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

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

Investment in one country by companies based in another so as to seek out markets, resources, or improved efficiency, being measures on the financial account

Description

Term

Gross income minus direct taxed, being £33,778 on average in the UK in 2016, but £13,149 for the poorest quintile and £67,486 for the richest

The process whereby firms in one country allocate part or all of their production to firms in other countries, hired by them but not owned

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.

Those which are affected by globalisation in that they may have more job opportunities but also must be more flexible to changes in demand, while working conditions and wages may fall as firms move to seek the lowest unit labour costs

The existence of a factor of production in an economy which disposes it to a particular type of production such as a country with a large amount of low skilled labour finding a comparative advantage in producing basic goods

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 1948 to 1995 precursor of the World Trade Organisation which organised a series of 'rounds' of tariff reductions

The trend in the US$/£ nominal exchange rate, though fairly steady since the 1980's

A theory stating that in the long-run, exchange rates (in a floating exchange rate system) are determined by relative inflation rates in different countries

A measure of output per worker or per hour worked, useful for comparing the relative costs of production between countries