Trade Skill test revision

Globalisation:

the process by which the world is becoming increasingly interconnected as a result of increased trade and cultural exchange

Interdependence

is the result of countries participating in a global economic system

TNC( Transnational corporations)

business that owns or controls the production of goods and/or services in more than one country

Trade deficit

when the value of a country’s imports exceeds the value of its exports. This means more money is leaving the economy than compared to money being earned which causes a leakage(contraction)

Trade surplus

When the value of a country’s exports is far more than its imports. This means we are making more money than the amount of money leaving our economy which means it is an injection. (Expansion)

Composition of trade

Exports:iron ore, coal, natural gas, agriculture Imports: manufactured products, petroleum, technology

Supply chain

the process by which commodities go from producers to consumers

Supply

process involved with the production and distribution of commodities

Manufacturing

process of turning raw material into a final product

Marketing & advertising

promoting or selling a good/services

distribution

right quality and quantity of material has been delivered at the right sale point

Retail

the sale of goods and services to consumers (selling products directly to the consumer)