Key Terms: International Trade & Access to Markets (AQA A Level Geography): Revision Note

International trade - key terms

Export – Goods or services sold by one country to another.

FDI (Foreign Direct Investment) – Investment made by a company or individual in one country into business interests located in another.

Global trade – The exchange of goods, services, and capital between countries across the world.

Import – Goods or services bought by one country from another.

International investment – The flow of capital across borders, including FDI and other financial transfers.

Trade volume – The total quantity of goods and services traded globally or between specific countries.

Value of trade – The total monetary worth of goods and services exchanged in global markets.

Trading relationships - key terms

Dumping – Selling excess goods (often at very low prices) in foreign markets, usually when domestic demand falls, as seen in China’s steel surplus.

EME (Emerging Market Economy) – Countries with growing economies and industrial bases, such as China and India.

Global shift – The movement of industry and manufacturing from HDEs to EME and LDE countries.

HDE (Highly Developed Economy) – Countries with high income levels and advanced infrastructure.

LDE (Less Developed Economy) – Nations with low income levels, limited infrastructure, and restricted access to global markets.

Primary commodities – Raw materials such as oil, minerals, and agricultural products that are exported by LDEs.

Secondary commodities – Manufactured goods with added value, such as electronics and vehicles, mostly exported by HDEs and EMEs.

Surplus – An excess of goods available for export due to overproduction or declining domestic demand.

Trading relationships and access to markets - key terms

ASEAN – A regional trade bloc in Southeast Asia promoting economic growth and trade cooperation among member states.

Brexit – The UK’s withdrawal from the European Union, which ended its automatic access to the EU single market.

Differential access to markets – The varying ability of countries to trade in global markets, often determined by tariffs, trade blocs, and development status.

EBA (Everything But Arms) – An EU trade initiative allowing LDEs to export all goods except weapons to the EU tariff-free.

EU (European Union) – A trade and political bloc of European countries with free movement of goods, services, people, and capital.

Quota – A trade restriction limiting the amount of a specific product that can be imported or exported.

Schengen Area – A zone within the EU allowing passport-free travel and goods movement between member countries.

SDT (Special and Differential Treatment) – WTO provision allowing developing countries preferential access to markets to support growth.

Tariff – A tax imposed on imported goods, often used to protect domestic industries.

Trade bloc – A group of countries that have agreed to reduce or eliminate trade barriers between themselves.

USMCA (formerly NAFTA) – A free trade agreement between the United States, Mexico, and Canada to encourage trade.

WTO (World Trade Organization) – A global organisation that promotes free trade and resolves trade disputes among member countries.

Transnational corporations - key terms

Acquisition – When one company buys another to expand its operations, e.g. Kraft’s acquisition of Cadbury.

Economies of scale – Cost advantages gained by companies as they increase production, reducing per-unit costs.

FDI (Foreign Direct Investment) – Capital investment by a company into production or business operations in another country.

Global marketing – Branding and advertising strategies used by TNCs to promote products across multiple markets.

Horizontal integration – A business strategy where a company buys out competitors at the same stage of production.

Offshoring – Moving production to another country to benefit from lower costs.

Outsourcing – Hiring external companies to perform business activities, reducing labour and operational costs.

Research and development (R&D) – Innovation and product development typically located in HDEs due to skilled labour availability.

TNC (Transnational Corporation) – A company operating in multiple countries with global production, sales, and supply chains.

Vertical integration – A company’s control of all stages of its supply chain, from raw materials to retail.

Westernisation – The spread of Western culture and values, often driven by the global dominance of Western-owned TNCs.

World trade - key terms

Fairtrade – A movement ensuring producers in developing countries receive fair prices and improved working conditions.

Global brand – A product or service recognised and sold across multiple countries, such as Coca-Cola or Nike.

Multiplier effect – Economic growth generated when investment leads to additional spending and job creation in a region.

Nike – A global TNC using offshore manufacturing, marketing, and sponsorships to drive global sales and influence.

Obesity/Health risks – Issues linked to consumption of high-sugar or processed products, often associated with TNCs like Coca-Cola.

Plastic waste – Environmental problem caused by single-use packaging, often produced in large quantities by food and drink TNCs.

Global food systems - key terms

Artificial additives – Chemicals used in processed foods to improve shelf life, appearance, or taste.

Deforestation – Clearing land for agriculture or plantations, contributing to biodiversity loss and carbon emissions.

Drip irrigation – A water-efficient farming technique that delivers water directly to plant roots, reducing waste.

GM crops – Genetically modified plants designed to improve yields, disease resistance, and drought tolerance.

Palm oil – A widely used vegetable oil often linked to deforestation, biodiversity loss, and land disputes.

RSPO (Roundtable on Sustainable Palm Oil) – An initiative to promote environmentally and socially responsible palm oil production.

Soil degradation – The decline in soil quality caused by overuse, chemical inputs, or deforestation.