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Section 6 - Coggle Diagram
Section 6
Chapter 38
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A floating exchange rate system means that the currency is allowed to fluctuate against other currencies according to market forces, without any government intervention.
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Depreciation is an accounting method of allocating the cost of a tangible or physical asset over its useful life or life expectancy.
A fixed exchange rate is a regime applied by a government or central bank ties the country's currency official exchange rate to another country's currency or the price of gold.
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devaluation is an official lowering of the value of a country's currency within a fixed exchange-rate system, in which a monetary authority formally sets a lower exchange rate of the national currency in relation to a foreign reference currency or currency basket.
A revaluation is a calculated upward adjustment to a country's official exchange rate relative to a chosen baseline.
Chap 37
Globalisation is the process by which the world’s economies become increasingly independent and interconnected
A multinational corporation is an organisation that operates in two or more countries. For example: Apple, Google, Samsung
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Protection refers to the use of trade barriers to restrain foreign, limiting competition
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Chap 39
Exchange Rate an exchange rate refers to the price of one currency measured in terms of other countries.
Balance of Payments:
is a financial record of a country’s transactions with the rest of the world for a given time period, usually one year.
Current account:
Is the largest component of the balance of payments. It records all exports and imports of goods and services between a country a country and its trading partners, plus net income transfer from abroad
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Chap 36
Specialisation occurs when countries concentrate on the production of certain goods and services due to cost advantages, perhaps due to their abundance of resources.
Individuals
People specialise when they choose a career. For example, teachers, doctors, accountants and plumbers
Specialisation allows them to be more skilled and efficient at their jobs. This increases the quality and quantity of goods and services provided.