Name: ____________________________
Section 4.2 Worksheet
Free Trade and Protectionism
Define the following:
Tariff
Quota
Subsidies
Voluntary export restraints
Administrative obstacles
Health and safety standards
Environmental standards
Infant industry argument
Diversification in LDCs
I.B. Economics
Mr. Raffay
Protectionism of employment
Source of government revenue
Strategic arguments
Alleviate balance of payments disequilibrium
Anti-dumping argument
Inefficiency of resource allocation
Costs of long run reliance on protectionism
Increased prices of goods to consumers
Cost impact of protected imports on export competitiveness
Name: ____________________________
Section 4.3 Worksheet
Economic Integration
Define the following:
Globalisation
Free trade areas (FTAs)
Customs unions
Common markets
I.B. Economics
Mr. Raffay
Name: ____________________________
Section 4.4 Worksheet
World Trade Organization
Define the following:
Aims of the WTO
Successes and failures viewed from different perspectives
I.B. Economics
Mr. Raffay
Name: ____________________________
Section 4.5 Worksheet
Balance of Payments
Define the following:
Current account
Balance of trade
Invisible balance
Capital account
I.B. Economics
Mr. Raffay
Name: ____________________________
Section 4.6 Worksheet
Exchange Rate
Define the following:
Fixed exchange rates
Floating exchange rates
Managed exchange rates
Depreciation and devaluation
Appreciation and revaluation
Common markets
Trade flow; capital flows/interest rate change
Inflation; speculation; use of foreign currency reserves
s
I.B. Economics
Mr. Raffay
Name: ____________________________
Section 4.7 Worksheet
Balance of Payments Problems
Define the following:
Consequences of a current account deficit or surplus
Managed changes in exchange rates
Reduction in aggregate demand/expenditure/reducing polices
Change in supply-side policies to increase competitiveness
Protectionism/expenditure-switching policies
Consequences of a capital account deficit or surplus
I.B. Economics
Mr. Raffay
Name: ____________________________
Section 4.8 Worksheet
Terms of Trade
Define the following:
I.B. Economics
Mr. Raffay
Terms of trade
Consequences of a change in the terms of trade for a country’s balance of payments and
domestic economy
The significance of deteriorating terms of trade for developing countries
Name: ____________________________
I.B. Economics
Section 5.1 Worksheet Sources of Economic Growth and/or Development
Define the following:
Natural factors
Human factors
Physical capital and technological factors
Banking system
Education system
Health care
Infrastructure
Political stability
Name: ____________________________
Section 5.2 Worksheet
Consequences of Growth
Define the following:
Externalities
Income distribution
Sustainability
I.B. Economics
Mr. Raffay
Name: ____________________________
Section 5.3 Worksheet
Barriers to Economic Development
Define the following:
Poverty cycle
Institutional and political factors (7)
International financial barriers (3)
Social and cultural factors acting as barriers (4)
International trade barriers (4)
I.B. Economics
Mr. Raffay
Name: ____________________________
Section 5.4 Worksheet
Growth and Development Strategies
Define the following:
Harrod-Domar growth model
Structural change/dual sector model
Bilateral and multilateral aid
Grant aid and soft loans
Official aid
Tied aid
Export-led growth/outward oriented strategies
Import substitution/inward-oriented strategies/protectionism
FDI
Sustainable development
I.B. Economics
Mr. Raffay
Name: ____________________________
I.B. Economics
Section 5.5 Worksheet
Evaluation of Growth and Dev. Strat.
Mr. Raffay
Define the following:
Aid and trade
Market led and interventionist strategies
IMF
The World Bank
Private sector banks
Mon-governmental organizations (NGOs)
Multinational corporations/transnational corporations (MNCs/TNCs)
Commodity agreements