Global Economy
it is also called as the exchange of product and services
barter trade
this means the willingness or capability of consumers or buyers to buy services and products
demand
it taked longer period of time to get supplies which leads to inflation
scarcity
this means the speed of price increase
rate
this is the increase of prices in the global market or world market
inflation
if the demand is high and the supply is low the profit is _
if the demand is low and the supply is high the profit is _
high
low
money has no value when
purchasing power is low
cause of living is high
this refers to when an individual directly invests to a another country which gives more for instance gives more interest percentage to filipino investors than foreign investors in mining.
foreign direct investment (FDI)
What’s produced within a country.
What’s produced by a country’s people and businesses.
What people actually earn from production.
GDP, GNP, NI
two types of economic system
free market economy
command economy
this type of economic system has the freedom to own businesses, prices depends only to the demand and supply
free market economy
in free market economy
the government can only interfere when price is too high they will set a _
and in order to protect consumers and businesses or sellers they set
_ for consumers
_ for sellers
price ceiling
floor price
what type of economic system is when everything is dictated by the government. from what to plant, to buy ,to build, and everything. mostly ruled by communist leaders.
command economy
they believe that a country would be better if there is no class or classless society which leads for everyone to be treated equal
communism
this means the free flow of products and services from one country to another
free trade
what are the three hindrance of free trade
quota
embargo
and tariff
what hindrance of free trade is limiting the number of supply or products to be created and sold.
quota
what hindrance of free trade is not allowing a country to trade new products and no new products is allowed to enter the country
embargo
what hindrance of free trade talks about the the duties of people and swell it is set when you export and import products
tariff