HSC ECONOMIC TEXT BOOK..TOPIC 1 SUMMARIES

HSC Economic Topic One Summary globalisation refers to the growing economic integrating amidst countries pencil lead to the emergence of a global trade place to a single market, where countries atomic number 18 becoming progressively linked by common technologies and the customization of goods and wreak marketed and distributed on a global rather than depicted tendency base Gross existence Product is defined as the total market value of good and work produced by all countries at a given time Futures of Globalization - change magnitude trade in good and services between nations, leading to a join on in World Gross Product - The consolidation of interior(a) pecuniary systems to urinate a humanity system - engineering plays a greater role in linking trade between nations - Internationalization of ram - Rapid liberalization of the global trading environment - increase importance of TNC, where increasing conducting trade and investment across national boundaries - I ncreased importance of global originations eg. WTO, IMF The main drivers of globalization ar technology, economic liberalization and consumerism The major cost of globalization is that unpack of international controls over capital investments which evoke lead to destabilizing snapshot and the volatility of short term capital flow. This has lead to the increase scope for contagion where a crisis in one monetary market or delivery spreads to others causing regional and lull global stability eg. The Asian financial crisis in 1997 2 types of shocks can be transmitted from the international economy to the national economy: - Real shock refers to changes in real variables including world output, commodities outlay and technological change eg. oil which caused stagflation(inflation and unemployment occur at very(prenominal) time) - Financial or monetary shock refers to changes in financial variables. Such as international share prices. Financial shocks are transmitted more quickly than real shocks through changes in! asset price and... If you want to get a abundant essay, order it on our website: BestEssayCheap.com

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