10.1 HSC Topic One – The Global Economy

HSC Topic One – The Global EconomyInternational economic integration
the global economy

Gross World Productglobalisation
trade in goods and services
financial flows
investment and transnational corporations
technology, transport and communication
international division of labour, migration
the international and regional business cycles
Trade, financial flows and foreign investmentthe basis of free trade – its advantages and disadvantagesrole of international organisations – WTO, IMF, World Bank, United Nations,
OECDinfluence of government economic forums – G20, G7/8trading blocs, monetary unions and free trade agreements
advantages and disadvantages of multilateral (EU, APEC, NAFTA, ASEAN)
and bilateral agreements

Protection
reasons for protection – infant industry argument, domestic employment,
dumping, defencemethods of protection and the effects of protectionist policies on the domestic
and global economy – tariffs, subsidies, quotas, local content rules, export
incentives

Globalisation and economic development
differences between economic growth and economic developmentdistribution of income and wealthincome and quality of life indicatorsdeveloping economies, emerging economies, advanced economies reasons for differences between nationseffects of globalisationtrade, investment and transnational corporationsenvironmental sustainabilitythe international business cycle.