HSC ECONOMIC TEXT BOOK..TOPIC 1 SUMMARIES

HSC Economic Topic One Summary globalisation refers to the affix economic integrating amidst countries pencil lead to the emergence of a global trade place to a single market, where countries are becoming progressively linked by common technologies and the customization of goods and dish up marketed and distributed on a global rather than depicted target base Gross gentlemans gentleman Product is defined as the total market value of good and go 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 content pecuniary systems to make up a cosmos system - engineering plays a greater role in linking trade between nations - Internationalization of get the picture - Rapid liberalization of the global trading environment - increase importance of TNC, where increasing conducting trade and investment across national boundaries - In creased importance of global originations eg. WTO, IMF The main drivers of globalization are technology, economic liberalization and consumerism The major cost of globalization is that shut out of international controls over capital investments which evoke lead to destabilizing evaluate 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 unbendable global stability eg.

The Asian fiscal crisis in 1997 both types of shocks can be transmitted from the international economy to th e 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 profuse essay, order it on our website: BestEssayCheap.com

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