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24 Cards in this Set
- Front
- Back
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Globalisation is evidenced by increasing links between countries, particularly via trade, investment and financial flows.
The world financial market are trulu global phenomena, which actions by one country often affecting financial variables in another. |
- providing explanations of trade and investment - process of internationalisation - government intervention: economic, social and political motives - political economy of trade and investment
volatile changes in foreign exchange rates -monetary agreements -international monetary system (framework, financial risk management) |
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absolute advantage |
suggests that countries differ in their ability to produce goods efficiently.
country should specialise in producing goods in areas where it has absolute advantage and import goods in areas where other countries have absolute advantage p 78 SEE DOC |
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born global |
p 105 |
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comparative advantage |
suggests that if it makes sense for a country to specialise in producing those goods that it can produce most efficiently, while buying goods that it can produce reletively less efficiently from other countries even if that means buying foods it could have produced more efficiently itself. p79 SEE DOC |
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eclectic paradigm |
p98 |
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economies of scale |
p90 |
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exporting |
p98 |
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externalities |
p102 |
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first-mover advantages |
p91 |
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free trade |
p76 |
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internationalisation advantages |
p101 |
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internationalisation theory |
p99 |
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liscencing |
p98 |
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location-specific advantages |
p102 |
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mecantilism |
Mercantilists argue that it was in a countries best interests to run a balance-of-trade surplus. they viewed trade as a zero-sum game in which one countries gains causes losses for other countries p77 |
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multipoint competition |
p101 |
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oligopoly |
p101 |
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ownership advantages |
p101 |
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positive sum game |
p78 |
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production possibilities frontier (PPF) |
p79 |
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psychic distance |
p104 |
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zero-sum game |
p78 |
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beneficial for country to engage in international trade. Why firms undertake foreign direct investment
Internationalisation process of SME (rapid internationalisation by firms) |
pointers |
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up to point 4 on pg180 |
theory |
