Economics Essay Notes

Submitted By lachlanterbutt
Words: 6401
Pages: 26
Open Document
ECO ESSAYs

1. Globalisation
2. Trade Agreements
3. Free trade/protection
4. Balance of Payments
5. Exchange Rate
6. China
7. Growth
8. Unemployment
9. Inflation
10. Inequality
11. External stability
12. Environment
13. Fiscal Policy
14. Monetary Policy
15. Microeconomic Policy
16. Labour Market

1. Globalisation
Analyse the impact of changes in the global economy (globalization) on Australia’s economic performance
• Intro o Context – 30 years, increase in integration of economies, increases in trade, financial flows, rise of TNCs o Definitions
• Features of globalization o Trade Flows o Financial Flows o Trans National Corporations o International Business Cycle
• Effect on Australia o Internal Stability
• Free Trade impacts
• Higher living standards, more consumption with lower prices → growth, less imported inflation
• Increase competitiveness/reallocation → less inflation, long term growth, short term unemployment
• International business cycle
• GFC wouldn’t have happened without globalization, couldn’t have had growth without it either
• Higher growth with more investment (access to foreign funds)
• Higher growth overall → lower unemployment, there has been lowered inflation o External stability
• Higher borrowing – SI Gap
• More imports
• Higher exchange rate
• Is it a bad thing? o Inequality
• Growth not distributed evenly
• FDI concentrated toward already successful industries
• Consumer goods come from overseas → unskilled out of work
• Growth dividend allows for more transfer payments o Environment
• In other countries TNCs have negative impact
• Increased consumption of natural resources
• International cooperation on environmental issues, international research
• Without global shift toward combating climate change wouldn’t have taxed carbon, done Kyoto, subsidised ethanol.

2. Trade Agreements
Analyse the impact of trading blocs and international organisations on the contrasting levels of development in the global economy.

Intro:
Definition of trading blocs
Existence of international organisations
Difference between economic growth and development
Development Gap

European Union
• Tariff wall – Common External Tariff
• Subsidies – Common Agricultural Policy
• Depression of world commodity prices
• Stronger growth and higher development throughout Europe
• Loss of market access – Philippines, Australia
• Growth is retarded
• Decreased ability to achieve higher standards of living/income >> low economic development

North American Free Trade Agreement
• Retaliation to EU
• Elimination of trade and investment barriers between members
• US shift production south, lower costs, access to large US market
• Trade diversion
• Strong growth and development in Mexico etc
• Lower export earnings >> restricted development for non members through worse CAD etc

Association of South East Asian Nations
• Aims to promote growth and development, social progress and cultural development in its member countries
• AFTA – regional resources used more efficiently, productivity, higher growth, development
• Higher protection against non-members > lose export earnings, lower growth and development
• Significant to Aust as we export most resources, manufactures, and services to member nations and import much petroleum, timber and light manufactures

Asia Pacific Economic Cooperation
• Trading forum
• Aim to create closer trade and investment links within the region and achieve free trade with the abolishment of protection by 2010 for developed economies and 2020 for developing economies
• Non-discriminatory - positive impact on both member and non member countries
• Improvements in world resource allocation >>greater efficiency and higher productivity
• Increases in world trade > increase in world GDP and domestic growth
• High growth > high development > high living standards
• ¾ Aust merchandise trade X

World Trade Organisation
•
Show More

Related Documents: Economics Essay Notes

Essay on Economics note

Class note: In economics, there are always uncertainties involved. These uncertainties include: Cost Price Demand Quality Return/revenue Uncertainty = risk How do you reduce risk? How can you reduce the income uncertainty or risk? Imposing minimum wage. Job protection. How can you reduce the uncertainty about quality? Imposing certainty standard. Getting more information on the product Warranty What if you are trading internationally, what is the risk you face? Exchange rate – depending…

Words 774 - Pages 4

Economics Notes Essay

Taxation. Comparative Advantage. “On Foreign Trade”. Corn Laws. d. Hecksher-Ohlin (1930s). Builds on comparative advantage. II. Goals of International Economics: To understand; a. Gains from trade. b. Patterns of trade. c. Autarcic Policies and their implications. d. Exchange rates. e. Policy formulation. f. Flow of funds. III. A Quick Note on Monetary Issues. Chapter 2: World Trade I. Size of Global Trade. a. It’s an excess of 20 trillion. b. Major US trade partners; 1. Canada, 2…

Words 592 - Pages 3

Essay about Economics Notes

Alyssa Bartlett Mrs. Kelso Economics 12/1/14 Chapter 9 notes ● Tracking Labor Force ○ Labor force­ all nonmilitary people who are employed or unemployed ○ the labor force contains small business owners as well ● Employment ○ the economists consider people 16 or older, and have met at least one of the following requirements: ○ the labor force worked at least one hour for pay within the past week ○ they worked 15 or more hours without pay in a family business, such as a farm ○ they held jobs but did not work due to illnesses…

Words 1080 - Pages 5

Economics Concept Notes Essay

Economics Concept Note Cost & Revenue Theory 2 The Law of Diminishing Returns 3 Economies of Scale 4 Opportunity Cost & Production Possibility Frontiers 5 Cost & Revenue Theory There are five main types of production costs which are defined and explained below: 1. Fixed costs (FC) are costs such as rent and interest which do not vary with output. These costs still have to be paid by the firm in the short run whether or not they are producing output. 2. Variable costs (VC) are costs such as…

Words 1308 - Pages 6

Micro and Macro Economic Notes Essay

What are the benefits and disadvantages of language as a way of knowing? I am going to look into what extent language helps us as a way of knowing. Firstly I am going to look at what language really is; it is the method of human communication, either spoken or written, consisting of the use of words in a structured and conventional way. On the other hand knowing is belief through justification. There is a debatable question about whether there can be thought without knowledge, We don’t often…

Words 836 - Pages 4

1354214130 2012 Economics Notes Essay

people who earn more Horizontal equity: Equal tax burden for people who earn the same Efficiency: the degree of which how tax won’t change allocation of resources (shouldn’t change savings/investment/production/consumption/export decisions/reduce economic efficiency) Simplicity: public’s understanding and certainty over tax (ease of collection, liabilities, compliance: minimization of avoidance (legal) & evasion (illegal)) Tax Base & Tax Rate Tax base: what is being taxed (income, consumption spending…

Words 882 - Pages 4

economic book notes Essay example

Economics: book notes Chapters 1,5,6, Chapter 1: Opportunity cost – the correct measure of cost. Attempts to fight market forces often backfire Nations can gain from trade by exploiting their comparative advantages Both parties can gain in voluntary exchange Good decisions typically require marginal analysis, which weighs added costs against added benefits. Externalities may cause the market mechanism to malfunction, but this defect can often be repaired by market methods…

Words 1215 - Pages 5

Labor Market Economics Study Notes Essay

production methods destroys the market power of existing monopolies. Pure Monopoly “blocked entry”- A pure monopolist has no immediate competitors because certain barriers keep potential competitors from entering the industry. Those barriers may be economic, technological, legal, or of some other type. But entry is totally blocked in pure monopoly. Quick Review 12.1 • A pure monopolist is the sole supplier of a product or service for which there are no close substitutes. • A mon…

Words 1619 - Pages 7

Preliminary Economics Half-Yearly Notes Essay

Economics Half-Yearly Notes PRELIMINARY TOPIC ONE: INTRODUCTION TO ECONOMICS The Nature of Economics * Economic problem: wants, resources, scarcity Relatively unlimited wants Relatively limited resources Scarcity → need for choice Economic systems: * traditional * command * market * mixed Three basic economic problems: WHAT/ HOW MUCH g + s should be produced? HOW should the g + s be produced? FOR WHOM should g + s be produced? * Economic problem: how…

Words 4233 - Pages 17

Slavery and Ap u. s. History Essay

Study Notes  AP Notes College Essays Sign Up Log In AP English Sample Essays Rhetorical Terms Bonus Knowledge AP European History Chapter Outlines AP Microeconomics Chapter Outlines AP Psychology Chapter Outlines AP U.S. Government Vocabulary Important Documents AP U.S. History Chapter Outlines Vocabulary Practice Tests Topic Outlines Timelines Court…

Words 1695 - Pages 7