eco essays

Question 1

IMF

Answer 1

$250b injection after GFC

Question 2

WTO

Answer 2

Uruguay round 1986 increased global trade by 3%

Doha round 2001 incomplete

Question 3

World Bank

Answer 3

$157b pandemic surge to repair developing nations, raised 600m people out of poverty

Question 4

EU & USMCA

Answer 4

increased tech and labour mobility
trade diversion due to exclusivity bad
16.5% of GWP

Question 5

G7 & G20

Answer 5

cancelled $100b in multilateral debt

lack effectiveness in covid

Question 6

Trade flows

Answer 6

349 FTAs in force as of 2021

trade is 58% of GWP

Question 7

financial flows

Answer 7

derivatives are $109t, 128% GDP

allows for interdependence of nations

Question 8

TNCs

Answer 8

transfer or money, skills, tech

employ 80m people worldwide

Question 9

tech, transport, communication

Answer 9

containerisation risen by 720% since 2012

4.6b people with internet access

Question 10

Intl. div. labour

Answer 10

272m migrants worldwide

Question 11

Trade comp in Aus

Answer 11

mining >50% X, agriculture 13% from 80% in 1980s

40% of M is capital goods, manufactured goods are 12% of M

Question 12

Trade value

Answer 12

X accounts for 24% of GDP in 2020 from 12% in 1980

china-aus trade war reduce GDP in aus by 1%

Question 13

trade direction

Answer 13

shift from eu to asian
Usa from 22% of X to 5.3%
shift to complementary ecos, China wants LNG, X with China doubled from 75b to 150b in 2020

Question 14

financial direction

Answer 14

predominantly from us, uk, belgium, japan

australia invests 28% into usa and 16% into uk

Question 15

financial comp. and value

Answer 15

shift from FDI to FPI
2.54t outflows in 2018 from 326b in 1991
2000s MIB, LNG boom recently
structural cause of CAD

Question 16

Savings investment gap

Answer 16

aus endowments, largest coal ore reserves, 3rd largest coal reserves, low population
recent CAS driven by LNG X

Question 17

pitchford thesis

Answer 17

CAD is sustainable, 80% of NFD owned by private sector

29 years of consecutive growth shows CAD is sustainable

Question 18

Debt-trap cycle

Answer 18

Australia’s persistent CAD led NFL to remain high, forces investment to be spent on servicing costs of previous debt, cycles, causes decreased ability to invest in large scale capital projects for LT growth

Question 19

Fiscal consolidation

Answer 19

twin deficit theorem, however FP cannot address underlying issue of private savings

Question 20

national competition policy

Answer 20

decreased monopolisation yields competitive equilibrium due to threat of new entrants, technical efficiency achievements, increased AS

Question 21

MB2

Answer 21

MB boosted household disposable income by 13% over decade to 2013, lead to appreciation of dollar

Question 22

Restructuring eco (2013-19)

Answer 22

MB two speed economy harmed intl comp of manufacturing industries (dutch disease). closure of PMV 2015, M From japan, AUD supply rises, Gillard gov. shift to sustainable X services
RBA reduction of CR from 4.75 to 3% 2011-15

Question 23

US-CHINA trade war

Answer 23

rise in global protection, global growth fell from 4.31% in 2010 to 2.3% in 2019 according to IMF

Question 24

COVID

Answer 24

strangled domestic supply and investment

High household savings ratio reduced need for inbound investment and AUD demand, went to US$0.58 in March 2020

Question 25

ANZCERTA 1983

Answer 25

Aus and NZ
increased trade at average rate of 8% since signing
NZ 3.4% of Aus trade flows

Question 26

ChAFTA (2015)

Answer 26

China is 33% of Aus X
complementary economies for service and mining X with manufacturing and IT M
95% of g/s tariff free between countries
recent tensions from aus-china trade war

Question 27

Financial dereg (1983)

Answer 27

floating AUD, intro to foreign banks for investment
tech efficiency, shock absorber, intl. comp
foreign banks disincentivised savings for households