Global Economy Hsc Summary
The global economy:
Most economists now talk about the global economy, where the economies of individual countries are linked to each other and changes in a single economy can have ripple effects on other. The aggregate value of all goods and services produced worldwide each year in the global economy is known as gross world product. Economies are now more closely integrated, stronger and far reaching than ever before.
Notes:
Globalisation has become a dominant economic, political and social theme. Globalisation is the integration between different countries and economies and the increased impact of international influences on all aspects of life and economic activity. Globalisation in recent decades has involved layers of influences in all directions. The United States is currently unrivalled as the leading world economy but its power is constrained by many other powerful economies in Europe and Asia. There are many dimensions and statistics that can be used as measures of globalisation.
The major indicators of integration between economies / drivers of globalisation are: * Trade in goods and services * Financial flows * Investment flows and transnational corporations * Technology , transport and communication * International division of labour and migration
Notes:
Globalisation:
Trade in goods and services – This is an important indicator of globalisation as it is a measure of how goods and services produced in an economy are consumed in other economies around the world. Trade in goods and service has grown rapid in recent decades, increasing from $8.7 trillion US in 1990 to $39.5 trillion US in 2008.
Annual growth in the value of trade has been consistently around twice the level of world economic growth. However, during economic downturns, global trade has contracted faster than world economic output, highlighting the greater volatility of trade compared with gross world product. The size of global trade reflects the fact that
Most economists now talk about the global economy, where the economies of individual countries are linked to each other and changes in a single economy can have ripple effects on other. The aggregate value of all goods and services produced worldwide each year in the global economy is known as gross world product. Economies are now more closely integrated, stronger and far reaching than ever before.
Notes:
Globalisation has become a dominant economic, political and social theme. Globalisation is the integration between different countries and economies and the increased impact of international influences on all aspects of life and economic activity. Globalisation in recent decades has involved layers of influences in all directions. The United States is currently unrivalled as the leading world economy but its power is constrained by many other powerful economies in Europe and Asia. There are many dimensions and statistics that can be used as measures of globalisation.
The major indicators of integration between economies / drivers of globalisation are: * Trade in goods and services * Financial flows * Investment flows and transnational corporations * Technology , transport and communication * International division of labour and migration
Notes:
Globalisation:
Trade in goods and services – This is an important indicator of globalisation as it is a measure of how goods and services produced in an economy are consumed in other economies around the world. Trade in goods and service has grown rapid in recent decades, increasing from $8.7 trillion US in 1990 to $39.5 trillion US in 2008.
Annual growth in the value of trade has been consistently around twice the level of world economic growth. However, during economic downturns, global trade has contracted faster than world economic output, highlighting the greater volatility of trade compared with gross world product. The size of global trade reflects the fact that