KEYWORDS

• Globalisation: idea that the world is becoming increasingly interconnected.
• HDI : measure of living standards, health and education
• Economic development: 


  actions by governments designed to improve living standards and economic health
• Trading bloc


  group of countries that have agreed to reduce or climate barriers to trade
• Fixed exchange rate


  Central Bank keeps the value of the currency, in terms of another at the same level
• Floating exchange rate:


  system that allows the value of a currency to fluctuate according to the free market forces of demand and supply
• Managed exchange rate


  government intervenes to minimise wide fluctuations of the ER, possibly targeting a specific rate.
• Real GDP:


  measurement of GDP that has been adjusted for inflation.
• Nominal GDP:


  measurement of GDP that has not been adjusted for inflation
• GDP per capita:


  measure of national income divided by population of a economy.