Statistics for Edexcel Economics 9. International Economics

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Answer Stats

Description	Term	% Correct
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	Common Market	100%
The ability to produce a product relatively more efficiently (i.e. at lower opportunity cost) than a competitor	Comparative Advantage	100%
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)	Current Account of the Balance of Payments	100%
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	Outsourcing	100%
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	Regressive Tax	100%
That which is different to the balance of trade as it represents the relative ratio between exports and imports while the balance of trade is the value of the difference	Terms of Trade	100%
The replacement of cheaper imported goods by goods from a less efficient trading partner within a bloc	Trade Diversion	100%
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	United Kingdom	100%
That decade since the fluctuations of which there has been no strong trend in the US$/£ real exchange rate	1980's	0%
A financial crisis felt mostly in Thailand and Indonesia which saw relatively little effect outside Asia (except for Latin America and Eastern Europe) and may even have helped countries like Thailand and South Korea emerge as stronger economies due to the failure of inefficient firms and increases in financial regulation	1997 Asian Financial Crisis	0%
The ability to produce a product more cost efficiently than a competitor such as with less labour costs	Absolute advantage	0%
The situation of a household whose income is insufficient to allow it to purchase the minimum bundle of goods and services regarded as necessary for survival, calculated as $1.90 PPP$ by the World Bank ($2.16 adjusted for inflation in 2019), often used for worldwide poverty measures	Absolute Poverty	0%
An increase in the value of a currency/the exchange rate, such as due to higher interest rates or the inflow of hot money	Appreciation	0%
The collective name for the income and current transfers components of the current account	Balance of Trade	0%
That which was reduced by Canada, the EU, Sweden, Switzerland, the UK, and the USA in coordination in October 2008 in attempt to prevent a recession	Bank Rate	0%
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	Botswana	0%
An international system of fixed exchange rates between 1945 and the 1970's in which there were no major banking crises but there was also an inability to cope with variations in levels of inflation	Bretton Woods System	0%
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	Capital Account of the Balance of Payments	0%
That country which joined the World Trade Organisation in 2001, allowing for rapid economic growth as confidence in the country's markets increased, building on the foundations of Deng Xiaoping and Jiang Zemin	China	0%
Those two countries the relationship between which, both politically and economically, is considered crucial for global economic prosperity, in alphabetical order	China and the USA	0%
Those two things the reduction in costs and increasing ease of which have helped facilitate globalisation by allowing Multinational Companies to effectively operate and take advantage of global economies of scale, in alphabetical order	Communication and Transportation	0%
That the theory of which is criticised for its analysis being static, often looking at only a few countries and without regard for regional variations, and for not considering transport costs, the ease of switching production, tariffs, exchange rates, or external costs and benefits (environment, etc.)	Comparative Advantage	0%
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	Comparative Advantage	0%
That theory in which it is assumed that all workers produce at an equal rate resulting in a straight PPF/trade possibilities frontier	Comparative Advantage	0%
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	Comparative Advantage	0%
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)	Consumers	0%
They which benefit from international/external trade due to the greater variety of products, lower prices, and better quality - as a result of increased competition - it allows for	Consumers	0%
That external shock not of economic origin that began in China in December 2019	Coronavirus	0%
Those words used to describe the flow of money into and out of a country's balance of payments, corresponding to exports and imports respectively	Credit and Debit	0%
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	Credit Crunch	0%
Those which are demanded to buy foreign goods, shares, and firms, place money in foreign banks and other financial institutions, and to speculate on the future value of them	Currencies	0%
That which the demand for and supply of are described as an inflow and an outflow of respectively	Currency	0%
The an imbalance in which a country may try to correct by imposing import restrictions (less possible due to trade blocs and the World Trade Organisation) and using measures such as devaluation, deflationary/contractionary policy, and supply-side policies	Current Account	0%
That in imbalance in which is much determined by its size, duration, cause (cyclical, structural), and whether it can be financed by a financial account surplus	Current Account	0%
That the position of which may try to be improved by supply-side policies such as improved education and training, lower income and/or corporation tax, etc.	Current Account	0%
That the four components of which are trade in goods, trade in services, income, and current transfers	Current Account	0%
Those on which BAA (now Heathrow Holdings Ltd) being taken over by a Spanish led consortium in 2006 appeared as a negative item - as profits made now flowed into Spain - and a positive item - due to the financial transfers to the UK as a result of the sale - respectively	Current Account and Financial Account	0%
That which countries such as the UK fund by running a financial account surplus in the form of selling assets and borrowing abroad	Current Account Deficit	0%
The component of the current account comprising transfers of money in and out of a country such as EU contributions and grants	Current Transfers	0%
A group of countries that agree to trade without barriers between themselves, and with a common tariff barrier against the world such as the East African Community (EAC) or Mercosur	Customs Union	0%
The population arranged into hierarchies of ten equally sized groups as opposed to quintiles which arrange it into five, quartiles into four, etc.	Decile Group	0%
An area of production that is coming to an end, sometimes protected and subsidised by government to prevent a sudden rise in unemployment	Declining Industries	0%
The UK's position on the current account, financial account, and capital account respectively since 1998	Deficit, Surplus, and Surplus	0%
That for exports and imports is determined by relative prices, the price and existence of substitutes, consumer incomes and preferences, and the exchange rate	Demand	0%
A decrease in the value of a currency/the exchange rate, such as due to inflation	Depreciation	0%
The trend in financial markets that has much facilitated globalisation, somewhat reversed since the financial crisis	Deregulation	0%
An adverse effect of globalisation in which skilled people such as doctors or entrepreneurs leave a country for better wages or lower income tax rates in another	De-skilling	0%
That the affect of which on a current account deficit is that it may reduce it by making imports more expensive and exports cheaper (subject to the Marshall-Lerner condition), while potentially increasing employment (by stimulating demand for exports) and contributing to inflationary pressure	Devaluation	0%
In a fixed exchange rate, a deliberate act by government to reduce the value of its currency in terms of another, such as done by the Labour government in 1967	Devaluation	0%
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	Direct	0%
Disposable income minus unavoidable living costs such as mortgage, rent, utility bills, etc.	Discretionary Income	0%
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	Disposable Income	0%
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)	Doha Development Round	0%
The trend in the US$/£ nominal exchange rate, though fairly steady since the 1980's	Downward	0%
A form of unfair competition in which a country sells products on foreign markets below production price so as to gain market share (later raising prices) as was accused of China during its development of the Canadian firm Bombardier in selling the CSeries to US Delta Airlines	Dumping	0%
The economic union formed in stages from 1990 which introduced a European Central Bank and single currency to succeed the exchange rate mechanism (ERM) and European Monetary System (EMS)	Economic and Monetary Union of the European Union (EMU)	0%
A set of trading arrangements the same as for a common market, though also having a common monetary policy and currency (or permanently fixed exchange rate)	Economic Union	0%
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	Economic Union	0%
Economies that have experienced rapid economic growth with some industrialisation and characteristics of developed markets such as the Asia Tigers in the 1960's - 1990's and the BRICs	Emerging Economies	0%
Those economies in which the imbalance in the global balance of payments is maintained by a lack of confidence in domestic financial assets and institutions such as in China, causing them to buy more sophisticated and safer British and American financial assets	Emerging Economies	0%
That issue regarding sustainable development of which much criticism of globalisation has been made	Environment	0%
That UK trading partner which was the recipient of 45% of UK exports and source of 53% of UK imports in 2018	European Union	0%
That which for countries to join, they had to have low and similar inflation rates, stable and similar interest and exchange rates, and a stable fiscal policy in the form of a low budget deficit and national debt	Eurozone	0%
A decreasingly used non-tariff barrier where a government restricts the availability of foreign currency in line with the level of imports it thinks the country can afford	Exchange Controls	0%
That which when high may reduce inflationary pressure due to the cheap import prices and high export prices it will allow, increasing competition and helping to maintain low prices	Exchange Rate	0%
A system set up by a group of European countries in 1979 to keep member countries' currencies relatively stable against each other, being a managed exchange rate, with eleven realignments between 1979 and 1987	Exchange Rate Mechanism (ERM)	0%
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	Expenditure-Reducing Measures	0%
Measures such as import restrictions and devaluation that are designed to encourage people to switch expenditure from imports to domestically produced products	Expenditure-Switching Measures	0%
Sudden negative events that can be made more widespread or even be amplified by globalisation	External Shocks	0%
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	Factor Endowment	0%
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	Final Income	0%
An account identifying transactions in financial assets between the residents of a country and the rest of the world, such as investment flows and central government transactions in foreign exchange reserves	Financial Account of the Balance of Payments	0%
They which benefit from international/external trade due to access to larger markets allowing for increased production and economies of scale, technology transfer, easier and cheaper access to raw materials, and the potential for greater revenue and profit and thus investment	Firms	0%
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	Firms	0%
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	Fixed Exchange Rate	0%
That the disadvantages of which are that governments may run out of foreign currency reserves with which to buy its own currency, holding such reserves incurs an opportunity cost such as of investment, knowledge gaps make it difficult to know to what value to adjust the exchange rate, and measures such as trade restrictions and deflationary/contractionary policy to maintain the exchange rate can adversely affect employment and growth	Fixed Exchange Rate	0%
That the advantages of which are that it reduces uncertainty, thereby encouraging trade, and ensuring a country takes measures to solve unacceptable levels of inflation as it cannot rely on exchange rate changes to restore its competitiveness	Fixed Exchange Rate	0%
That which must be kept near equilibrium so as not to exhaust foreign currency reserves or accumulate excess foreign currency reserves	Fixed Exchange Rate	0%
That which affects macroeconomic policy as it prevents the use of monetary policy to stabilise the economy as it is needed to maintain the exchange rate, however it imposes financial discipline on governments	Fixed Exchange Rate	0%
A system in which the exchange rate is determined by market forces rather than by government, resulting in constant changes in the currency's value	Floating Exchange Rate	0%
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	Floating Exchange Rate	0%
That the advantages of which are that is is in theory if not in practice, self correcting of the current account balance as the rise and fall in the value of the currency will see corresponding changes in exports and imports (demand and supply) restoring the balance	Floating Exchange Rate	0%
That type of exchange rate which does not automatically lead to a current account balance due to capital movements, and government unwillingness to allow sharp falls in the exchange rate as it can contribute to inflation	Floating Exchange Rates	0%
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	Foreign Direct Investment (FDI)	0%
Stocks of foreign currency and gold owned by the central bank of a country to enable it to meet any mismatch between the demand and supply of the country's currency	Foreign Exchange Reserves	0%
Investment in financial assets in one country by companies based in another, such as stocks, being measures on the financial account	Foreign Portfolio Investment (FPI)	0%
A group of countries that agree to trade without barriers between themselves, but have their own individual barriers with other countries, an example of which being NAFTA (until replaced by the USMCA)	Free Trade Area	0%
A market such as for foreign exchange in which it is possible to buy a commodity at a fixed price for delivery at a specified future date	Futures Market	0%
An international cooperation forum of 20 major economies of which one is not a country, namely the EU	G20	0%
That which is criticised as a measure of labour productivity between countries as opposed to GDP per hour worked as it doesn't take into account differences in the quantity of labour input	GDP per Head	0%
The 1948 to 1995 precursor of the World Trade Organisation which organised a series of 'rounds' of tariff reductions	General Agreement on Tariffs and Trade	0%
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	General Import Restrictions	0%
The five countries which comprised the UK's top import origins in 2017 in descending order	Germany, China, Netherlands, USA, and France	0%
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	Gini Index	0%
A process by which the world's economies are becoming more closely integrated	Globalisation	0%
That which is criticised for the spread of Western culture it facilitates posing a threat to indigenous cultures and traditions	Globalisation	0%
That which is caused by trade liberalisation as encouraged by the World Trade Organisation, technological and communications improvements, the growth of multinational companies, increased capital (financial, human, etc.) mobility, and increased skill levels globally (English, IT, etc.)	Globalisation	0%
That which is affected by globalisation in that it can place downward pressure on taxes to prevent firms offshoring or outsourcing while simultaneously increasing the need to enhance education and skills training, meanwhile firms moving production can cause sudden increases in unemployment in one country and sudden decreases in another	Government	0%
Original income plus cash welfare benefits	Gross Income	0%
Trade between high income countries	HIC-HIC Trade	0%
Trade between high and low income countries	HIC-LIC Trade	0%
Countries defined by the World Bank as those with an annual per capita GNI above $12,475	High Income Countries (HICs)	0%
That energy related construction project that is a recent example (beginning December 2018) of a positive item on the UK's financial account, being funded by French and Chinese investment	Hinkley Point C Nuclear Power Station	0%
Money entering or leaving an economy for purposes of speculation, sometimes greatly affecting the exchange rate	Hot Money	0%
A planned high-speed rail network linking London to the North so as to improve transport and trade and thus UK international competitiveness, as well as to strengthen political and social links between London and the regions	HS2	0%
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	Income	0%
That which arises from wages, welfare benefits, profits, dividends, rents, and interest	Income	0%
Those two things in the UK for which the richest quintile accounted for 40% (in 2015) and 60% (in 2013)	Income and Wealth	0%
Those two things in the UK for which the poorest quintile accounted for 8% (in 2015) and 1% (in 2013)	Income and Wealth	0%
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	Inequality	0%
An area of production that has just emerged in an economy, often being temporarily protected and subsidised by government while it remains too small to reap the benefits of economies of scale, with the risk of causing dependency and x-inefficiency	Infant Industries	0%
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	Inflation	0%
That word used to describe the increasing reliance of markets on one another by lieu of their increasing integration	Interdependence	0%
Trade within a country	Internal Trade	0%
That which the UK has tried to improve in the form of macroeconomic stability viz. maintaining a low inflation rate, increasing competition in banking, holding a competition relative exchange rate, etc.	International Competitiveness	0%
That which the UK has tried to improve in the form of entrepreneurship viz. improving access to business finance, reducing regulations, providing incentives for innovation, etc.	International Competitiveness	0%
That which the UK has tried to improve in the form of the labour market viz. investing in education and training and encouraging inward migation of skilled workers, etc.	International Competitiveness	0%
That which government might try to increase via privatisation, deregulation, cuts to direct taxes (partly to attract multinational companies), transport and infrastructure investment, education and training investment, and exchange rate manipulation	International Competitiveness	0%
That which policies to increase may have the disadvantage of higher productivity (resulting in fewer workers being needed for the same level of production) and labour market flexibility (such as zero hour contracts) resulting in unemployment and lower living standards	International Competitiveness	0%
The ability of an economy to sell its exports well in competition with other economies, calculated using a wide range of variables	International Competitiveness	0%
That which to measure it is necessary to use the real exchange rate, inflation rate, productivity (GDP per hour worked, total factor productivity, etc.)/relative costs of production, and marketing skills (such as language proficiency)	International Competitiveness	0%
Trade between countries	International/External Trade	0%
The sale and purchase of goods and services among countries as opposed to domestic trade which takes place within a country	International Trade	0%
That which is most influenced by comparative advantage, competitiveness, development (moving from primary production to secondary to tertiary), increasing intraregional trade via trade blocs, and exchange rate variations	International Trade	0%
That trade which is dominated by developed countries and advanced developing countries	International Trade	0%
That which alongside specialisation, the principal advantage of is higher world output and raised living standards	International Trade	0%
That type of trade which can incur higher costs from transportation (depending on distance (e.g. Seattle is nearer Vancouver than Miami)), regulations and restrictions (tariffs, quotas), transaction (currency exchange) costs, researching foreign markets, and adhering to different quality standards, languages, etc.	International Trade	0%
Trade by members of a trading bloc with those outside of it, or trade between different regions	Interregional Trade	0%
Trade among members of a trading bloc or within a specific region	Intraregional Trade	0%
The relationship between development and income inequality, though with notable exceptions in countries such as Afghanistan and Saudi Arabia	inverse	0%
The former term used to describe trade in service, in which the UK has been in surplus since 1966, principally due to an increase in financial services, computer and information services, advertising, etc.	Invisible Trade	0%
A phenomena whereby devaluation of a currency does not immediately improve a current account position, owing to fixed contracts and short run capacity, causing a short-run deterioration of the trade situation	J-Curve Effect	0%
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	Kuznets Curve	0%
That which is criticised as what it shows is not clearly apparent in practice, though perhaps due to a lack of expensive long-term data for countries' development and inequality levels	Kuznets Curve	0%
A measure of output per worker or per hour worked, useful for comparing the relative costs of production between countries	Labour Productivity	0%
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	Law of Comparative Advantage	0%
Trade between low income countries	LIC-LIC Trade	0%
A series of trade and aid agreements between the EEC (later the EU) and developing ACP (African, Caribbean, and Pacific) countries, which the USA as part of NAFTA protested against at the WTO	Lomé Convention	0%
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	Lorenz Curve	0%
That graph the horizontal/x axis of which shows cumulative percentages of population and the vertical/y axis of which shows cumulative percentages of wealth	Lorenz Curve	0%
Countries defined by the World Bank as those with an annual per capita GNI below $1,026	Low Income Countries (LICs)	0%
A floating exchange rate with some deliberate action by government to influence the movement of the currency in a desired direction, such as the Euro, Pound Sterling, and US Dollar	Managed Exchange Rate	0%
Tax on additional income defined as the change in tax payments due divided by the change in taxable income: ∆ tax payments÷∆ taxable income	Marginal Tax Rate	0%
Wealth that consists of those assets that can be bough or sold such as property and shares	Marketable Wealth	0%
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	Marshall-Lerner Condition	0%
The average income reached by dividing total income by the number of individuals, criticised as a measure of income distribution as it can be distorted by a small number receiving a very high income	Mean Income	0%
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	Median Income	0%
Countries defined by the World Bank as those with an annual per capita GNI between $1,026 and $12,475	Middle Income Countries (MICs)	0%
Where countries adopt a common currency	Monetary Union	0%
They which in an effort to increase profits outsource or offshore production, seek finance in the most efficient markets, place profits in the lowest taxed countries, and market their products internationally	Multinational Companies	0%
The changes in the exchange rate between two or more currencies without regard for inflation	Nominal Exchange Rate	0%
Wealth that consists of those assets that cannot be bought or sold such as pension rights	Non-Marketable Wealth	0%
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	Non-tariff barriers	0%
The process whereby firms in one country arrange part or all of their production in plants they own in other countries	Offshoring	0%
That hard commodity a change in the price of which can act as an external shock to the global economy, though less so now with the rise in the use of renewable energy	Oil	0%
That hard commodity the 1970's rise in prices of which was caused by supply-side factors, mostly due to actions by OPEC, but in the 2000's was caused by demand-side factors, fueled by China's rapid economic growth	Oil	0%
Income from jobs, private pensions, interest from savings etc. before benefits and taxes, being £35,204 on average in the UK in 2016, but £7,153 for the poorest quintile and £84,747 for the richest	Original Income	0%
That price elasticity which is assumed of world supply	Perfect Price Elasticity of Supply	0%
A UK measure defined as individuals living in relative poverty for at least three of the last four years	Persistent Poverty	0%
Disposable income minus indirect taxed	Post-Tax Income	0%
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.	Poverty	0%
That which governments try to reduce by introducing employment creating measures (such as infrastructure investment or cuts to marginal tax rates), improving education and training, subsidising childcare, incentivising firms which employ less employment demographics, progressive taxation, minimum wages, benefits, etc.	Poverty	0%
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.	Poverty	0%
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	Poverty	0%
The income below which people are in poverty whether relative or absolute	Poverty Line	0%
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	Poverty Trap	0%
That the export of which the least developed countries often rely on for foreign currency	Primary Products	0%
A tax that is proportional to income, being neither progressive or regressive	Proportional Tax	0%
That policy the two significant problems with which are that it can allow x-inefficiency and can prevent an economy from evolving in the face of structural changes, worsening inefficiencies, and decreasing competitiveness	Protectionism	0%
That (such as in the form of tariffs) which countries may resort to so as to protect domestic industries, allow infant industries to grow (particularly important in developing countries), prevent the importation of low quality or unsafe products, prevent the export of strategic products such as fuel or food, raise revenue, or to pursue political objectives such as via sanctions	Protectionism	0%
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	Purchasing Power Parity Theory of Exchange Rates	0%
The nominal exchange rate adjusted for differences in relative inflation rates between countries, calculated as the nominal exchange rate×ratio of relative prices	Real Exchange Rate	0%
International organisations formed to facilitate economic and political integration within a region such as the EU or ASEAN, or as is planned for the African Union (AU)	Regional Organisation	0%
The situation of a household whose income is insufficient to allow it to participate in the normal social life of the country, being below 60% of the media adjusted household disposable income in the UK, often used for national poverty measures	Relative Poverty	0%
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	Relative Quality	0%
In a fixed exchange rate, a deliberate act by government to raise the value of its currency in terms of another	Revaluation	0%
Limits set on imports of particular products	Selective Import Restrictions	0%
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	Single Currency	0%
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	Single Currency	0%
A loosely defined concept where production decisions have negative effects on quality of life such as the downward pressure on government taxes due to global competition, decreasing the quality of social services	Social Dumping	0%
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	Sterling Effective Exchange Rate	0%
The only region non seeing a significant or any improvement in the proportion of people in absolute poverty	Sub-Saharan Africa	0%
Development which meets the needs of the present without compromising those of future generations	Sustainable Development	0%
Those the level at which they were imposed on member and non-member countries before entry into a trading bloc is often the greatest determinant of whether trade diversion will outweigh the effects of trade creation	Tariffs	0%
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)	Terms of Trade	0%
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	Terms of Trade	0%
That of the UK which has been steady since the 1970's oil crises, even during the recession	Terms of Trade	0%
The which a decline in may not make an economy worse off as long as the volume of trade increases sufficiently to offset it	Terms of Trade	0%
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	Total Factor Productivity	0%
A group of countries that have signed some type of formal agreement about their trading relationship with one another	Trade Bloc	0%
The replacement of more expensive domestic production or imports with cheaper output from a partner within a trading bloc	Trade Creation	0%
The largest component of the current account	Trade in Goods	0%
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.	Trickledown	0%
That country the average terms of trade of which in the year April 2017 to April 2018 were 101.86, above the average of 99.02 from 1970 to 2018	United Kingdom	0%
That country the economy of which is focused on high value-added manufacturing and services	United Kingdom	0%
The UK's five largest export markets in 2017 in descending order	USA, Germany, Netherlands, France, and China	0%
Those two currencies a fall in the value of the former and a rise in the value of the latter that could be one of two short-term connected factors that would rebalance the global balance of payments, the other being a redistribution of aggregate demand (domestic consumer expenditure, exports, etc.) within countries	US Dollar and Chinese Renminbi	0%
The former term used to describe trade in goods in which the UK has been in deficit since 1982	Visible Trade	0%
An agreement by a country to limit its exports to another country to a given quantity, usually enforced by means of a licence	Volunary Export Restraint (VER)/Quota	0%
That which inequality in is caused by inheritance, marriage (concentrates said thing), saving (easier and with better returns for those with more of said thing), skills/enterprise, and chance (lottery)	Wealth	0%
That which can provide income via rents, dividends, interest, etc. potentially allowing for the accumulation of more of said thing	Wealth	0%
That which is held in savings, shares, property (real estate), bonds, and private occupational pension and life assurance schemes	Wealth	0%
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	Workers	0%
A multilateral body founded in 1995 responsible for overseeing the conduct of international trade	World Trade Organisation	0%
That which the total balance of payments should always equal	Zero	0%