Eco Help please? (1 Viewer)

[cricket_freak]

Hay guys, i was sorta summarising the first section topic for HSC eco on globalisation, and i came across this section in which i was sorta confused.
*Trade
*Investment and Technology
*Finance
*Labour

i seriously dun know how to put these 4 sub headings into a summary, would anyone care to help please.

thanks

cricket_freak

 

[pritnep]

Have you tried looking at the syllabus and seeing what that says or is that from the syllabus (sorry dont do eco). Other then that wait for Riviet (sure he shall answer soon or another eco student) or look in the resource section.....sorry can't be more help

 

[nick1048]

globalisation has an effect on those four factors. That's what you summarise, i.e. How has globalisation effected trade flows between nations: It has strengthened ties between isolated economies and hence encouraged an increase in trade direction and trade volume. The same applies for the other points, find out how globalisation effects the remaining three factors and that should complete your summary on globalisation.

 

[cricket_freak]

actually that is from the syllabus(third dot point on globalisation). ok thanks for advice.

cricket_freak

 

[Rafy]

Yes, that section pertains to "The nature of globalisation"

Therefore you look at the characteristics and effects of globalisation in those four areas.

For example:
*Trade
Breaking down of trade barriers; emergence of trading blocs; shifts in the structural composition of economy's exports/imports (generally a move away from agriculture to Manufactured goods and services)

I think these are from WithoutWings' notes: (My eco notes are unfortunately all hand-written)

Labour
The most undeveloped aspect of globalisation due to tight restrictions. However, highly skilled labour travels globally to the locations where the rewards are the maximum. A vigorous international market for labour has developed with guest workers gaining temporary employment to cover for labour shortages.

Investment and technology
Where residents or companies of one country acquire assets abroad. Foreign Direct Investment (FDI) was US$3,456m in 1997; seven times the level in real terms in the 1970’s. The industrialised countries have 68% of foreign investment. The two main types of investment are direct investment (significant degree of control) and portfolio investment (ownership rights e.g. shares, bonds – less than 10%). The growth in direct investment has been driven by TNC’s, whilst portfolio has been driven by the development of the global financial system. The technology gap has widened, giving wealthier countries a competitive advantage. It has reduced the costs of conducting international business and allowed for the generation of economies of scale in production

Finance
The main developments with global finance are the ability to use techniques to hedge risk, and the development of a complex global financial system. Between 1983 and 1998, cross border sales and purchases of US Treasure Bonds increased from US$30b a year to US$4.2 trillion

Trade
Globalisation has led to fast growth in world trade, heavily favoured toward the high-income countries. They had 86% of GWP, 82% of world exports. NIE’s have experienced export growth in excess of 5% a year by diversifying into manufacturing. A measure of the extent of trade is trade dependency i.e. the importance of exports and imports relative to GDP. Whilst trade in goods has increased, growth of trade in services has been phenomenal.

 

[cricket_freak]

are NIE's newly industrialised economies?

 

[Rafy]

are NIE's newly industrialised economies?

Yes. NIE = "Newly Industrialising Economy" to be precise.

 

[Rekkusu]

I tend to look at it as Labour Flows + Investment Flows + Financial Flows + Trade Flows + International Business Cycle + Transnational Corporations as the the main processes that create what economic theory states as Globalisation.

Then, we might look even further into what exactly carries or contributes to these flows:

NGOs, Individual countries, Trade Blocs/Agreements.

The 1st topic is quite important, so be sure to understand all the links, everything affects everything.

p.s. I think you may have missed out IBC in your summary notes.

A little bit of advice is not to re-write your textbook, nor write summaries, yes summaries may be good, but in economics, you can just write and write for like a couple of A4 pages without knowing...Since you're only just about to step into Year 12, the best approach would be to skim and sketch, so e.g. for Labour Flows, all you need to remember is what causes labour flows, Why is it caused, specific terms for Labour flows like Brain Gain, Brain Drain, and finally some statistics to make your answers look spiffy niffy, and professional.

Though, don't remember things word for word, there are some things which can be understood in a sentence.