Part Two: the Global Economy

Question 1

What is economic growth, and how is it measured

Answer 1

Occurs when there is a sustained increase in a countries productive capacity over time, measured by the percentage increase in the Real Gross Domestic Product

Question 2

What is economic development and how is it measured

Answer 2

Is a broad measure of welfare in a nation that includes indicators of health, education and environmental quality as well as living standards, measured by the HDI

Question 3

What are the global factors for differences between nations

Answer 3

1. Global Trade System
2. Global Finance Architecture
3. Global Aid and Assistance
4. Global Technology Flows

Question 4

What are the domestic factors for differences between nations

Answer 4

1. Natural Resource Endowment
2. Labour Supply and Quality
3. Institutional Factors

Question 5

What are the effects of globalisation

Answer 5

1. International Convergence
2. Economic growth, development and the quality of life
3. Distribution of income and wealth
4. Financial Markets
5. Trade, Investment and transnational corporations
6. Environmental Sustainability
7. The International Business Cycle