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Description
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Term
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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
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Consumers
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The process whereby firms in one country arrange part or all of their production in plants they own in other countries
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Offshoring
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The trend in financial markets that has much facilitated globalisation, somewhat reversed since the financial crisis
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Deregulation
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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.
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Invisible Trade
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That of the UK which has been steady since the 1970's oil crises, even during the recession
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Terms of Trade
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The nominal exchange rate adjusted for differences in relative inflation rates between countries, calculated as the nominal exchange rate×ratio of relative prices
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Real Exchange Rate
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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
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Government
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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
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Bank Rate
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That the four components of which are trade in goods, trade in services, income, and current transfers
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Current Account
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The 1948 to 1995 precursor of the World Trade Organisation which organised a series of 'rounds' of tariff reductions
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General Agreement on Tariffs and Trade
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A tax that is proportional to income, being neither progressive or regressive
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Proportional Tax
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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
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Fixed Exchange Rate
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An international cooperation forum of 20 major economies of which one is not a country, namely the EU
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G20
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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)
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Economic Union
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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
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Emerging Economies
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That country the economy of which is focused on high value-added manufacturing and services
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United Kingdom
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That decade since the fluctuations of which there has been no strong trend in the US$/£ real exchange rate
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1980's
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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
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Economic Union
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That which must be kept near equilibrium so as not to exhaust foreign currency reserves or accumulate excess foreign currency reserves
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Fixed Exchange Rate
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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
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China
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