Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Economics 2.1.4
Economics- Edexcel 2.1.4
| Question | Answer |
|---|---|
| Balance of payments | records all financial transactions made between consumers, businesses and the government in one country with other nations |
| Inflows of foreign currency to the BOP | a positive entry |
| Inflows of foreign currency | exports sold overseas which causes money to come into a country |
| BOP | balance of payments |
| Outflows of foreign currency | imported goods and services cause money to leave the circular flow of income and spending |
| Outflows of foreign currency to the BOP | a negative entry |
| Current account of the balance of payments | main measure of a country’s external trade performance(difference between money and credit going in and out of an economy through exports, imports and income paid on assets at home and abroad) |
| 2020 UK exports nd imports of goods and services total | exports = £574 billion , imports = £586 billion |
| Trade deficit | amount by which the cost of a country's imports exceeds the value of its exports and usually the main part of the current account deficit |
| Current account deficit | the value of imports of goods/services / investment incomes is greater than the value of exports, so the country is running an external deficit and there is a net outflow of income from the economy’s circular flow |
| Trade balance in goods include | manufactured goods, components, raw materials, energy like oil and gas / capital technology |
| Trade balance in services | banking, insurance and consultancy / tourism, transport, logistics / shipping, education, health / research and cultural arts |
| Net primary income from overseas assets | flow of profits, interest and dividends from investments in other countries / net remittance flow from migrant workers |
| Net remittance | total funds transfer from one bank account to another as a gift or payment |
| Migrant worker’s remittance | When migrants send home part of their earnings in the form of either cash or goods to support their families |
| Net secondary income | overseas aid or debt relief / UK payments to the European Union |
| Debtor countries | current account deficit nations, e.g. US and UK |
| Current account surplus | a country has more exports than imports of goods and services so a country is operating an external surplus and there is a net inflow into the economy |
| Creditor nations | current account surplus nations, e.g. Germany, Norway, South Korea |
| Short-term (cyclical) causes of a current account deficit | Fast “above-trend” growth/Cyclical rise in global commodity prices/Rising real incomes & consumer spending increasing import demand/strong exchange rate= imports cheaper and exports expensive/recession in the economy of a country's major trade partner |
| Medium-term (structural) causes of a current account deficit | Low levels of business investment and relative labour productivity/high unit labour costs/long term decline in the world price of a country’s major export/weaknesses in design, branding, performance & other non-price factors |
| Bilateral trade | the exchange of goods between two nations promoting trade and investment |
| Unilateral trade | one-sided, non-reciprocal trade preferences granted by developed countries to developing ones, with the goal of helping them to increase exports and spur economic development |
Created by:
jessharris
Popular Economics sets