Chapter 16, International trade and free trade Flashcards Preview

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Flashcards in Chapter 16, International trade and free trade Deck (9)
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1
Q

Benefits of international trade

A
  • Variety of products
  • Economic growth
  • Business growth
  • International co-operation
  • Specialisation
2
Q

Reasons Trade barriers

A
  • foreign competition can result in unemployment
  • businesses have not reached a sufficient level of growth to be able to compete with the big companies
  • If a country runs a large balance of payment deficits it might try to reduced imports
3
Q

Trading Bloc

A

A group of countries within a particular geographical region that protects themselves from imports from non-members.

4
Q

Types of Trading Bloc

A
  • Free trade area
  • A Custom Union
  • A Common market
  • The EU
5
Q

Exchange rate

A

the value of the pound in terms of another currency

6
Q

Foreign exchange market

A

the market for currency which is not in the single location but exists globally whenever buyers and sellers deal

7
Q

How is Exchange rate determined

A

the influence of demand and supply

see notebook notes

8
Q

Hot Money

A

flow of money from country to country, which is chasing the highest rate in interest it can get possible

9
Q

SPICED

A

Strong Pound Imports Cheap Exports Dear