IGCSE Economics Section 8
Terms in this set (13)
Occurs when people and businesses produce what they have a competitive advantage in
occurs when an entity concentrates too much on producing a limited number of products, thereby increasing risk
balance of payments
financial record of a country's transactions with the rest of the world
balance of trade
the difference between a country's total export earnings and total import expenditure
in the balance of payments, records transactions involving; the export or import of goods and services, net income flows and transfers
Current account deficit
when a country's total imports of goods, services and transfers is greater than the country's total export of goods, services and transfers.
current account surplus
Where the revenue from the export of goods and services and income flows is greater than the expenditure on the import of goods and services and income flows.
Services sold to other countries.
Services bought from other countries.
Net income flows
The difference between inward and outward flows of interest, profits and dividends
money flows form 1 country to another, e.g. remittances, gifts
goods sold to other countries
goods bought from other countries