When workers are not flexible enough to move from job to job according to the needs of the market.
Geographical immobility
Factors that prevent people moving from one area to another to find work
Transfer pricing
Technique used by TNCs to reduce tax on profits by selling goods at a low price from a high-tax country to another part of the company that is in a low-tax country.
Tax haven
A place where firms located to avoid paying high taxes in their own country.
Tax base
The income and wealth which a government can tax based on their tax laws.
Absolute advantage
Exists when a country is able to produce a good more cheaply in absolute terms than another country.
Comparative advantage
When a country is able to produce at a lower opportunity cost than another country
Specialisation
When nations are not self-sufficient, but concentrate on producing certain goods and services and trading the surplus with others.
PPF
A curve which shows the maximum potential level of output of one good given level of output for another good
