Economics: Topic 12, Year 2 Definitions

The trend for many markets to become worldwide in scope.

The sale of goods and services through the internet.

An international body established with the aim of increasing world trade. It has over 160 member countries.

Measures the contribution of a sector to the economy, less the value of goods or services used in production.

Occurs when an individual, firm, region or country concentrates on producing a limited range of products.

Businesses with productive facilities in more than a single country.

The advantages that a firm gains due to an increase in its size or in the size of the industry in which it operates.

The movement of people between different countries, though it can also refer to movement between regions within a country.

An economy that is moving from being centrally planned, where the state decides on production patterns, to a free market.

Records the transfer of ownership of UK or foreign businesses between residents in different countries.

State-owned investment funds that invest in a range of assets including shares, bonds, hedge funds and property.

A process whereby average incomes rise in an economy along with other measures of economic wellbeing such as standards of education and healthcare.

Economies that have relatively low incomes per capita but generally enjoy high rates of economic growth.

The process of removing manufacturing industries from an economy and the economic and social consequence which follow.

The exchange of goods and services across national frontiers.

The exchange of goods between two or more countries.

Exists when one country requires a smaller quantity of inputs to produce a good than another country.

Occurs when one country cam produce a good or service at a lower opportunity cost than another.

Occurs when an individual, firm, region or country concentrates on producing a limited range of products.

The next best alternative that was given up when making a choice.

Shows the maximum combination of products that can be provided by an economy during a given period of time with the resources available.

The economic region comprising of the 19 EU members that use the euro as their national currency.

Refers to a range of measures used by governments to restrict the free entry of imports into an economy.

A tax on an imported product.

A limit on the volume or quantity of a product that can be imported into an economy.

Payments to exporters of goods and services to enhance the price competitiveness of the firms concerned.

A range of techniques designed to restrict imports, but not in the form of a tariff.

The sale of a product in an export market for less than the cost of production or at a lower price than it is sold in the exporters domestic market.

Exists when a group of countries establish a free trade are with a common external tariff.

The uniform tariff rate imposed on imports by all members of a customs union.

Occurs when consumers within a customs union purchases products from an efficient producer elsewhere in the union rather than from relatively high-cost domestic producers.

Refers to trade diverted away from efficient global producers as a result of the creation of a customs union.

Refers to a range of laws and regulations used by governments to prevent the abuse of monopoly power by firms.

The executive body of the EU with responsibility for proposing new legislation, monitoring the operation of EU treaties and overseeing routine operations.

Refers to the outcomes of human creativity including literary works, inventions as well as designs, symbols, and names used by businesses.