Trading blocks are groups of countries who form trade agreements between themselves. Trading blocks can include Free trade areas – elimination of tariffs between economies in the trading block Customs union – free trade area + a common external tariff with non-members Economic union/Single market – Customs union + common rules and regulations. Different types …
Labour intensive refers to a production process where labour costs are the largest component. Labour intensive implies that capital (machines/factories) are a small percentage of the final cost. Labour intensity is the percentage of labour which is used in the production process. Labour intensive industries Certain industries and types of jobs tend to be more …
Some facts about the UK economy. GDP In 2018, UK GDP stood at $2,809 trillion (£2,217) According to IMF, the UK GDP ranked 5th in nominal terms. Behind Germany (4th) and ahead of India (6th) Measured according to Purchasing Power Parity (adjusted for living costs, the UK ranked 9th The Great Moderation. Between 1993 and …
Purchasing Power Parity PPP is a theory which suggests that exchange rates are in equilibrium when they have the same purchasing power in different countries. Purchasing power parity will involve looking at a basket of goods to determine effective living costs. The purchasing power parity is determined by dividing a basket of goods in one …
A look at the different factors affecting the price of oil in both short term and long. Readers Question: I’m trying to update myself on what’s happening with oil prices at the moment (partly to prepare myself for uni interviews) but I’m finding very conflicting articles, such as: Article warning of oil rising to $150 …
There was a global recession in 1974, 1980-81, 1991-92 and 2007. Readers Question: In this period of recession, is gold a safe investment? Gold is traditionally seen as a safe investment, especially during a time of financial uncertainty, high inflation, depreciating exchange rates and economic recession. The main reason is that gold has an intrinsic …
Comparative advantage occurs when one country can produce a good or service at a lower opportunity cost than another. This means a country can produce a good relatively cheaper than other countries The theory of comparative advantage states that if countries specialise in producing goods where they have a lower opportunity cost – then there …
The rust belt is an area of mid-west US dominated by declining manufacturing industry. Cities and regions affected tend to have: High unemployment Declining populations Falling real incomes Social problems associated with structural unemployment. Although the rust belt refers mostly to the mid-west of the US, it can refer to any area which experienced a …