international economic integration Flashcards
global economy
all the countries in the world that produce goods and services
gross world product
total output of the world economy
globalisation
the removal of barriers between and integration of countries and economies
economic integration
liberalisation of trade between two or more countries or many countries within a region or between regions
indicators of globalisation
trade in goods and services
financial flows
investment and transnational corporations
technology, transport and communication
international division of labour and migration
trade in goods and services
globalisation has led to higher world output and has led to growth in the exchange of goods and services between economies
financial flows
refers to the increase in the flow of debt, equity, shares, currency, hedging, superannuation
financial flows are mainly driven by financial deregulation and speculation
investment and transnational corporations
fdi refers to companies buying a controlling interest in a foreign subsidiary
international division of labour and migration
the division of labour refers to the allocation of tasks to people in different countries in order to maximise specialisation and efficiency
international business cycle
refers to changes in world output
factors that strengthen the international business cycle
trade flows - reduced trade barriers
financial flows - deregulation, forex
investment flows - increased TNCs and FDI
technology - improved transport and communication
global interest rates - contagion
factors that weaken the international business cycle
domestic interest rates - contagion
government fiscal policies - taxes decrease spending
exchange rates - fluctuations can be unfavourable
structural factors - influence the competitiveness of the economy
