Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Economics > The Global Economy > Flashcards

The Global Economy Flashcards

1
Q

Gross World Product

A

The GWP is a measure of the value of production over the globe, which is also the total Gross National Product of every economy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Purchasing Power Parity

A

The PPP is a method to get more accurate comparison of the value of different currencies by focusing on the quantity of goods and services purchased by one unit of the said currency

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Gross National Income

A

The GDP of an economy’s net recipients from foreign sources

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Features of Global Economy

A 
Distance shortened by Technology
Communication sped up by Technology
Markets open up
Relaxed Trade Barriers
Consumers consume products from other countries 
Domestic policies limited effect
Increased income disparity
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Trends in Global Economy

A

Increase in trade beyond national boundaries
Increase in movement of factors of production
Increase interdependence of national economies
Increase environmental strain
Tendency for consumer trends to spread worldwide

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Globalisation

A

Globalisation refers to increasing integration between different economies and the increased impact of international influences on all aspect of life and economic activity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Factors Driving Globalisation (LIST)

A

International Trade Flows
Financial Flows
Investment and Transnational Corporations
Technology, transport and communication
International Division of labour and migration

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Business Cycle

A

Upswings, Booms, Downswings, Trough

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Factors that make transmission of economic conditions from one country to another more immediate

A 
Trade Flows
Investment Flows
TNC
Financial Flows
Global Interest Rate
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Factors that make business cycles of countries different

A

Government policy
Structural Factors
Regional Factors
Domestic Interest Rates

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Arguments for Free Trade

A

Factor Endowment
Absolute Advantage
Comparative Advantage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Arguments against Free Trade

A

Increase in short-term unemployment
Difficult for businesses in less advanced economies to compete
Production surplus may be “dumped”
Environmental Concerns

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Arguments for Protection

A 
Infant Industry
Protect Domestic Employment
Cheap Foreign Labour
Military Self-sufficiency
Dumping
Income Redistribution
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

International Organisations

A 
WTO
IMF
WORLD BANK
UNITED NATIONS
G20
OECD
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

International Trade Flows talking points

A
  • Indicator of Globalisation

- Composition of trade and Direction of Trade

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Financial Flows talking points

A
  • Most globalised feature because money moves much faster than goods
  • FOREX
  • Speculators are the main drivers
17
Q

Investment and TNC talking points

A
  • Long-term investment
  • FDI/Portfolio
  • Global companies with multi-national factors of production
18
Q

Technology, transport and communication talking points

A
  • Freight technology - standard container sizes
  • Cheaper communication - satellites/optic fibre networks
  • Smartphones
19
Q

Division of labour + migration talking points

A
  • Move to countries where skills are most needed

- Brain Drain

20
Q

Boom phase features

A

Capacity constraint and inflation occurs

21
Q

Downswing Features

A
  • Tighten monetary policy

- Growth decelerates

22
Q

Upswing Features

A
  • GDP Growth

- External Demand

23
Q

Trough/Recession features

A
  • External Shock
  • Demand decreases
  • Unemployment Rises
24
Q

Free Trade

A

A situation where governments impose no artificial barriers to trade that restrict the free exchange of goods and services between countries with the aim of shielding domestic producers from foreign competitors

25
Q

Infant Industry

A

Small local industry could develop comparative advantage if they have temporary protection

26
Q

Infant Industry - Counter

A
  • Private investors would have already known and invested

- Difficult to know when to remove tariffs

27
Q

Protect Domestic Employment

A

Unemployment would rise

28
Q

Protection Domestic Employment - Counter

A

Short-term allocation structural unemployment, more efficient allocation of resources = lower unemployment

29
Q

Cheap Foreign Labour

A

Difficult for lower skill people to be employed when labour is so cheap in foreign countries

30
Q

Cheap Foreign Labour - Counter

A

-Ignores that cost of labour also reflects productivity

31
Q

Positive Effects of Reduced Protection

A
  • Lower inflation
  • Lower Prices
  • Return on investment are maximised
  • Rising demand for Exports
  • Higher levels of Economic Growth
32
Q

Negative Effects of Reduced Protection

A
  • Increased Structural Unemployment
  • Increased Income Inequality
  • Increased Costs
  • Loss of Tariff Revenue
  • Rising import spending
33
Q

HDI Measures

A

Life Expectancy Birth
Levels of Education Attainment
GNI per Capita

34
Q

Categories of Development

A

Advanced Economies
Developing Economies
Emerging Economies

35
Q

Global Factors of Inequality

A

Global Trade System
Global Financial Architecture
Global Aid and Assistance

36
Q

STAT

A

STAT

Economics (4 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions