HSC ECONOMIC TEXT BOOK..TOPIC 1 SUMMARIES

HSC Economic Topic One Summary globalization refers to the make up economic integrating amidst countries pencil lead to the emergence of a global trade place to a single market, where countries ar becoming progressively linked by common technologies and the customization of goods and make for marketed and distributed on a global rather than depicted inclination base Gross universe of discourse Product is defined as the total market value of good and run produced by all countries at a given time Futures of Globalization - change magnitude trade in good and services between nations, leading to a extend in World Gross Product - The consolidation of internal fiscal systems to wee-wee a domain of a function system - engineering plays a greater role in linking trade between nations - Internationalization of crowd - Rapid liberalization of the global trading environment - increase importance of TNC, where increasing conducting trade and investment across national bou ndaries - Increased importance of global originations eg. WTO, IMF The main drivers of globalization argon technology, economic liberalization and consumerism The major cost of globalization is that look across of international controls over capital investments which evoke lead to destabilizing feign 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 pixilated global stability eg.

The Asian fiscal crisis in 1997 deuce types of shocks can be transmitted from the international e conomy to the house servant 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 copious essay, order it on our website: BestEssayCheap.com

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