Th2.1: Interconnectedness of Economies

Question 1

What is the first way that the world economy has become increasingly interconnected?

Answer 1

the proportion of output of an individual economy which is traded internationally is growing

Question 2

What is the second way that the world economy has become increasingly interconnected?

Answer 2

many more people/companies own assets in other countries such as shares, loans or businesses

Question 3

What is the third way that the world economy has become increasingly interconnected?

Answer 3

there is increasing migration between countries

Question 4

What is the fourth way that the world economy has become increasingly interconnected?

Answer 4

more technology being shared on a faster basis

Question 5

In theory, what should all current balances add up to and why?

Answer 5

zero because what one country exports another imports

Question 6

What has international trade meant for countries?

Answer 6

they have become more interdependent so a change in the economic condition of one country will affect another