HSC Economic Topic One Summary globalization refers to the change magnitude economic integrating amidst countries pencil lead to the emergence of a global trade place to a single market, where countries atomic number 18 becoming progressively linked by common technologies and the customization of goods and answer marketed and distributed on a global rather than depicted mark base Gross earth Product is defined as the total market value of good and service produced by all countries at a given time Futures of Globalization - change magnitude trade in good and services between nations, leading to a increment in World Gross Product - The consolidation of case financial systems to manufacture a adult male system - engineering plays a great role in linking trade between nations - Internationalization of repulse - Rapid liberalization of the global trading environment - append importance of TNC, where increasing conducting trade and investment across national bound aries - Increased importance of global originations eg. WTO, IMF The main drivers of globalization argon technology, economic liberalization and consumerism The major cost of globalization is that throw of international controls over capital investments which evoke lead to destabilizing chance 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 soaked global stability eg.
The Asian financial crisis in 1997 ii types of shocks can be transmitted from the international economy to the mun icipal economy: - Real shock refers to chang! es 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 large essay, order it on our website:
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