Causes and Effects of Globalisation

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Factors contributing to increased globalisation in the past

Impacts of Globalisation
Benefits
Cost
Environmental Effect

Trade and the World Economy

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Impacts of Specialisation and Trade

Cost and Benefits
Impact towards World Economy (answers should include in
the context of two different counties/economies)
Globalisation
Macroeconomic goals
Factors influencing patterns of trade
Reasons for changes in trade flows between countries
Factors Influencing Countrys terms of trade
Impact of Changes in a Countrys terms of trade
Impact towards Economy
Globalisation
Macroeconomic Goals
Roles of the WTO in Trade Liberalisation
Conflicts between trading blocs and the WTO
Reasons for restriction of Free Trade
Impacts of protectionist policies
Impact Towards World Economy
Globalisation
Macroeconomic Goals
Other Political Effects

Balance of Payments and Exchange Rates

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Factors Influencing Size of Deficit/Surplus in Current Account

Factors Influencing Size of Deficit/Surplus in Financial Account
Measures to reduce Current Account Imbalances
Effects of Imbalance
World Economy
Government Intervention in Currency Markets
Factors Influencing Floating Exchange Rate
Impact of changes in exchange rate
Economy
Macro goals
Impacts of Competitive Devaluation/ Currency Wars

Poverty and Inequality

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Causes of Income and Wealth Inequality

Make sure to separate which one is income and which one is
wealth
Impacts of Inequality
Economy
Incentives promote higher productivity
Savings Lower Consumption
Migration higher outward migration, lower potential
GDP
Development
Education
Life Expectancy
How does economic growth impact on inequality?

Role of State
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Reasons for change in public expenditure

This one focuses on government expenditure. May not lead to
borrowing if tax revenue enough to cover expenditure
Effects of high/low levels of public expenditure
Factors influencing size of public sector borrowing and debt
This one focuses on government borrowing.
Effects of large/small public borrowing/debt
Methods to reduce fiscal deficit
Impacts to reduce fiscal deficit
Macro goals
Development
Inequality
Methods to overcome poverty and inequality using tax and expenditure
Methods/Policies to deal with major external shocks
Policies to achieve specific macro goals

Measures to Promote Economic Growth and

Development

These questions can ask specific measures to an effect, e.g. To what

extent trade liberalisation can promote economic growth, or can be
generalised to just ways, e.g. Evaluate the measures that could be used to
promote economic growth
o Impacts of on economic growth and/or development/ economy
Trade liberalisation
Promotion of FDI
Removal of Government subsidies
Privatisation
Freely floating exchange rate
Microfinance schemes
o Impacts of on economic growth and/or development/ economy
Development of human capital

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Protectionism
Managed Exchange rate
Infrastructure development
Promoting joint ventures with TNCs
Impacts of on economic growth and/or development
Industrialisation
Development of tourism
Development of primary product industries
Impact of international institutions and NGOs on growth and
development
World Bank
IMF
WTO
Other Ngos of your choice
Impacts of policies on
development/inequality/economy/development/macro goals
Aid
Debt relief
Fair Trade
Evaluate factors that limit growth and development
Evaluate <specific factors that limit growth and development>

Primary Product
Dependency
Savings gap
Inadequate Capital
accumulation
Foreign Currency
Gap
Capital flight
Rapid population
Growth

Ageing Population
Debt
Inadequate provision
of credit and banking
Corruption
Poor Governance
Absence of Property
Rights
Civil Wars