week six - the transformation of the world economy

Question 1

what were the positive effects of the accelerated liberalisation process that occurred in the 1980s

Answer 1

• growth of asian tigers (south korea, hong kong, singapore, taiwan, malaysia, indonesia, thailand and Philippines), china and India

Question 2

what were the negative effects of the accelerated liberalisation process that occurred in the 1980s

Answer 2

• impacts on inequality, financial instability, deindustrialisation of developed countries, environmental degradation

Question 3

what is meant by globalisation with nuances

Answer 3

globalisation is not synonymous with liberalisation

Question 4

what are the 6 main negative effects of globalisation

Answer 4

1) inequality and poverty
2) higher financial crisis frequency
3) offshoring consequences
4) impact on raw material prices
5) environmental problems
6) other problems

Question 5

what are the determinants of income distribution

Answer 5

• labour regulations
• globalisation
• political processes
• income inequality
• redistribution of tax and spending
• demographic and societal structure
• macroeconomic structure

Question 6

what is the heckscher-ohlin theory