4 Trade, Finance, and Global Production Free Online FlashCards

What cross-border flows connect economies in global economic integration?

Global economic integration connects economies through cross-border flows of goods, services, investment, and workers.

What two broad kinds of goods are traded internationally?

Goods trade includes final products sold to consumers and intermediate inputs used to make other products.

Why can gross exports overstate the value created by an economy?

Gross export totals can count the same input more than once when a product crosses borders repeatedly during production.

What are the four modes of international services supply?

Services are supplied across borders, through consumers travelling abroad, through locally established foreign businesses, or by people travelling to provide services.

What are three forms of capital flows?

Capital flows include loans, portfolio investment in financial assets, and foreign direct investment.

What distinguishes foreign direct investment from other investment?

Foreign direct investment is investment that gives an investor a lasting interest and influence in a business in another economy.

What is a global value chain?

A global value chain is the sequence of activities for creating and delivering a good or service when those activities take place across countries.

What opportunities can global value chain participation offer countries?

Global value chain participation can help countries access markets, technology, and skills, but it does not guarantee that they capture high-value activities.

What are remittances?

Remittances are money transfers that migrants send to people in their countries of origin.

What supports connectivity in trade and production networks?

Connectivity relies on infrastructure and services such as ports, roads, reliable energy, telecommunications, logistics, and finance, as well as predictable rules.

How can global production networks spread disruptions?

Production networks can spread disruptions: a shortage or transport blockage in one location may affect manufacturers and consumers elsewhere.

What does trade in value added measure?

Trade in value added estimates how much value each economy contributes to traded products.