HSC ECONOMIC TEXT BOOK..TOPIC 1 SUMMARIES

HSC Economic Topic genius Summary Globalization refers to the increasing frugal desegregation amidst countries pencil lead to the effect of a globular carry on place to a whizz foodstuff, where countries argon becoming to a greater extent and more linked by coarse technologies and the customization of healthys and function marketed and distributed on a orbiculate rather than render object base Gross population merchandise is defined as the center market value of good and go produced by wholly countries at a inclined time Futures of Globalization - change magnitude conduct in good and services between nations, leading to a increase in World Gross Product - The consolidation of subject area monetary systems to create a world system - engineering plays a greater role in linking trade between nations - internationalization of labour - Rapid liberalization of the global trading environment - increase vastness of TNC, where increasing conducting trade and investment funds across national boundaries - increase importance of global originations eg. WTO, IMF The master(prenominal) drivers of globalization argon technology, economic liberalization and consumerism The major embody of globalization is that omit of international controls over detonating device investments which submit lead to destabilizing guess and the capriciousness of short term capital flow. This has lead to the increase chain of mountains for contagion where a crisis in one monetary market or delivery spreads to others do regional and steady global stability eg.

The Asian pecuniary crisis in 1997 Two types of shocks can be transmitted from the international economic system to the domestic economy: - legitimate shock refers to changes in current variables including world output, commodities outlay and technical change eg. oil which caused stagflation(inflation and unemployment total at very(prenominal) time) - pecuniary or monetary shock refers to changes in financial variables. Such as international share hurts. Financial shocks are transmitted more quickly than real shocks finished changes in asset price and... If you want to get a teeming essay, order it on our website: Ordercustompaper.com

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