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A level H2 Economics > Chapter 8: Globalisation > Flashcards

Chapter 8: Globalisation Flashcards

1
Q

Define International Trade

A

Exchange of G&S across national boundaries

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2
Q

Define CA

A

Produce the good at a lower OC than another country

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3
Q

Law of CA

A

Trade can benefit all countries if each country were to specialise in producing the goods in which they have a CA in and exchange some of the goods in which they have a CD in

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4
Q

Illustration of S&T

A

6 Assumptions
Table
Explanation

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5
Q

TOT Definition

A

Rate at which one unit of a good can be exchanged for another
Trade will be beneficial if TOT lies between OC

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6
Q

Sources of CA

A 
Static CA (Natural resources, Human resources, Capital stock, Technological capabilities)
Dynamic CA (Capital, Skills, Tech)
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7
Q

Limitations of CA Theory

A 
Increasing OC
Factor Immobility
Transport Costs
Protectionism
Strategic Reasons
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8
Q

Patterns of Trade

A

Commodity and Geographical composition of trade

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9
Q

Economic Reasons for SG POT

A

Inter-industry - Small developed economy, stong technological base and highly skilled workforce, etc
Intra - Differences in T&P and Gains from internal economies of scale
Others - Globalisation&FTA, Protectionism, Transport Costs

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10
Q

Benefits of Trade

A 
Higher consumption possibilities
Wider consumer choice and greater product variety
Lower prices for domestic consumers
Trade as an engine of growth
Technological transfer
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11
Q

Costs of Trade

A

Unfair Competition and Dumping
Over-reliance on Foreign countries (Susceptible to externally-induced cyclical unemployment and imported inflation)
Structural Unemployment
Worsening BOT
Widening Income Disparities within a country
Environmental degradation / Pollution

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12
Q

Define Protectionism

A

Measures that restrict the movement of G&S between countries, sheltering domestic industries from foreign competition

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13
Q

Tools of Protectionism

A 
Tariffs
Quotas
Explain what they are:
VER 
Currency Manipulation
Administrative Measures
Subsidies to domestic producers
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14
Q

Tariffs

A 
Graph
Explanation
Implications on efficiency
Macroeconomic Impact
Limitations (2) and Unintended Consequences
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15
Q

Quotas

A

Graph and explanation

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16
Q

Reasons for Protectionism and CAs

A

Infant Industries
Unfair Trade Practices
Trade Imbalances and Unemployment
Declining Industries

Protection of Strategic Industries / Against bads/ Achieve political objectives

17
Q

Define Economic Integration

A

Process whereby neighbouring countries integrate as one economic unit to take advantage of extended market and bring about better allocation of resources

18
Q

Types of Economic Integration

A

FTAs (Define, SG)
Customs Union
Common Market

19
Q

Trade Creation and Diversion

A

Define, table, explanation

20
Q

Define globalisation

A

Integration or inter-connectedness of national economies through trade of G&S, FDI, capital flows, spread of technology, labour migration

21
Q

Features of Globalisation

A

Openness to Trade (Engine of growth, Trade Liberalisation, Outsourcing)
Openness to International Capital Mobility (Offshoring, International Supply Chain, Financial Flows)
Openness to International Labour Mobility

22
Q

Economic factors affecting G

A

CA, Engine of Growth, Proliferation of Free Trade Groupings, Economic Crises

23
Q

Technological factors affecting G

A

Distance and high transport costs
ICT
Tech advances

24
Q

Political factors affecting G

A

Communism fall
China
Trade barriers for votes tm

25
Q

Benefits of G

A

Access to Raw materials and Inputs
FDI
Foreign technology
Foreign labour

26
Q

Costs of G

A 
Economic Instability
Brain Drain
Structural Unemployment and Income Inequality
Social Costs of Increased Immigration
Environmental Degradation
27
Q

Globalisation and SG’s POT

A

Impact on Commodity and Geographical Composition

28
Q

Policies to enhance SG X and as a destination of FDI

A

SSP to lower Px, improve X quality, attract FDI, promote exports/FDI and accessibility to M

29
Q

Policies to mitigate negative effects of G and Rise of Deglobalisation

A

SSP to reduce economic instability and build resiliency, prevent structural unemployment and reduce income inequality, manage labour movements

A level H2 Economics (11 decks)

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