ECONOMIC INTEGRATION
TRADE, FINANCIAL FLOWS, FOREIGN INVESTMENT
PROTECTION AND FTA
GLOBALISATION & ECONOMIC DEVELOPMENT
Lucky Dip
100

The increasing interconnectedness and interdependence of single economies into one global economy.

globalisation

100

The incomes from factors of production.

Rent, Wages/Salary, Profit, Interest

100

Cash payments made to local producers to increase supply in the face of import competition.

Subsidies

100

Refers to the process by which the economic well-being and quality of life of a nation, region, local community, or an individual are improved according to targeted goals and objectives.

Economic development

100

An item in the Capital and Financial Account. Referred to as investment into equity securities (such as shares, options and rights) and debt securities (other than direct investment and includes bonds and notes).

Portfolio investment

200

Two examples of emerging economies

Brazil, Russia, India and China (BRIC)

200

Low income countries with around half the population in absolute poverty

Developing economies

200

Government policies and industry regulation, where a certain percentage of inputs or outputs must be manufactured within Australia.

Local Content Rules

200

Includes the following: 

1. Life expectancy at birth

2. Adult literacy and educational attainment

3. Real GNI per capita income 

Human Development Index

200

When businesses and consumers fail to consider the social costs or benefits of production.

Market failure

300
Establishing subsidiaries in foreign countries to utilise labour skills at a lower cost and to increase profits by selling goods and services to the large global market.
What is offshoring?
300

THREE advantages of free trade

Increased specialisation of production, a greater range of output, increased competition between firms and increased productivity of resources, economic growth

300

This may result from the effect of tariffs on import prices, which can be passed on as higher prices for domestic consumers.

Import inflation

300

Economies that are in the process of industrialisation and experiencing high growth 

Emerging economies

300

A situation of high inflation and unemployment rates, coupled with stagnant economic growth.

What is stagflation?

400

Expansion, boom, contraction, recession.

Business cycle fluctuations

400

Unfair price cutting, if countries which are efficient producers of agricultural or manufactured goods, sell their exports at below factor cost in foreign markets.

Dumping

400

Three reasons for protection

Infant industry argument, to protect domestic employment and to prevent dumping

400
1. Putting a price on carbon emissions and establishing targets for their reduction. 2. Changing people’s behaviour by moving to low carbon technologies and cleaner energy sources. 3. Fostering international co-operation through a new Kyoto Protocol Agreement which has targets, and is led by major polluting advanced countries, which will encourage developing countries to adopt similar policies to reduce their greenhouse gases.
What are the three major strategies for dealing with climate change and reducing greenhouse gas emissions according to the UNDP report 2007-08?
400

This organisation replaced the GATT secretariat in 1995 and it monitors developments in world trade and reviews barriers to world trade such as tariffs and subsidies.

World Trade Organisation?

500

FIVE indicators of globalisation

Trade flows, Investment flows, financial flows, technology transport and communication and international division of labour

500

A multilateral regional economic forum including 21 Asia Pacific Economies.

Asia-Pacific Economic Cooperation

500

Describe THREE characteristics of a monetary union.

Regional multilateral agreement between more than 2 economies, own currency, single monetary policy central bank. 

Eg. European Union. 

500

High income economies with GNI per capita about $US13,205

Advanced economies

500

This organisation was formed in 1961 and has 34 member countries. Its main objectives are to promote sustainable economic and employment growth and rising living standards in member countries, whilst maintaining financial stability and contributing to world economic development.

 Organisation for Economic Co-operation and Development (OECD)

M
e
n
u