Factors that strengthen/weaken the International Business Cycle (1 Viewer)

[Arithela]

Has this question been asked in any trial or HSC exams?

 

[Sparcod]

No, it doesn't look like a HSC question to me. It is true that globalisation strengthens international business cycles by making economies more dependent on each other and having similar economic activities as a result.

 

[williamc]

No, it doesn't look like a HSC question to me. It is true that globalisation strengthens international business cycles by making economies more dependent on each other and having similar economic activities as a result.

A process called regionalisation can occur. Where economies in a particular area shield themselves from the rest of the world. As seen in Europe through the EU.

From memory factors that strengthen the International business cycle are: global interest rates, international financial flows, international investment flows, international trade flows.

Again from memory factors that weaken the international business cycle are: domestic interest rates, domestic fiscal policy among others.

 

[yeeshu]

if they ask it....today you'd have to talk about how even though the US economy is getting screwed...china and India are going strong...showing that the international business cycle has seemed to weaken in recent years