The Global Economy Flashcards
What is the reason for the increase in trade of goods and services in the global economy?
- World Trade Organisation push for trade liberalisation
- Technology online trading of G+S
- Advancements in transportation
- Expansion of TNC’s
- Development of trade agreements between nations
What are the main drivers of globalisation.
- Trade in G+S
- Financial Flows
- Investment and TNCs
- Technology, Transport and Communication
- International Division of Labour Migration
What is globalisation?
The integration between different countries and economies and the increasing impact of international influences on all aspects of life and economic activity.
What are the advantages and disadvantages of financial flows?
Advantage
* Enable countries to obtain international funds to finance domestic investments
Disadvantage
* Can create volitility in forex markets and domestic financial markets
What are the forms of protection?
- Tariffs
- Subsudies
- Quotas
What are the drivers globalisation?
- International trade in goods and services
- International fianncial flows
- International investment and transnational corporations
- Technology, transport and communicaiton
- The international division of labour migration
What are advantages and disadvantages of free trade.
Holistically discuss the impact of ‘protection’ on Australia and the global economy
Why might a govt prefer to protect a domestic industry throught the implementation of a subsidy as opposed to a tariff?
- Subsidy does not change the price. market operatates at WP
- Whilst other forms of protection will increase the domestic price
- Result in inflation as subsidy wont increase prices unlike a tariff therefore inflation will not occur
Explain what trade blocs, FTA and Monetary Unions are and advantages and disadvantages to world trade
Differentiate between Economic Growth and Economic Development
Economic Growth is the number of goods and services produced in the economy
Economic Development is a quantitative measure of human and social capital
Define Gross World Product
The sum of total output of goods and services by all economies in the world over a period of time
