help with a few syllabus points (1 Viewer)

[rsingh]

hey guys, i was just writing up my notes the other day for topic 1 and was unsure about a couple of syllabus points.


- changes in the size, pattern and direction of trade and investment
- reasons for differences between nations
- the international business cycle (under Nature of the global economy and globalisation) - what are we suppose to say abt it in relation to the global economy/globalisation.

Any help in clarifying these would be higly appreciated!
Thanks.

 

[sunjet]

changes in the size, pattern and direction of trade and investment

trade increased in size and proportion of world economic activity
composition -> mainly goods and services
manufactures increased 4%
20% of global trade is now services and is fastest growing sector
direction: changing importance of different economic regions. high incomes economies did 80% of merchandise exports but was 75% in 2002.
fast growing economics -> 5% to 9% share of global trade
FDI flows have heavily favoured developed nations.
77% of FDI inflows recieved by them. Sub-Saharan Africa recieved 1-2% of FDI inflows in 2002.
global trade flows increased as a proprtion of global output from 33.9% in 1990 to 49.6% in 2002.
between 1990 and 200 FDI grew 7 sold increase however in 2003 fell due to economic global slowdown

reasons for differences between nations

there are international and domestic reasons for inequalities

international: global trade system, financial system, aid and assistance, technology flows.
domestic: natural resources, labour force, political system

the international business cycle

refers to fluctuations in level of economic activity globally over a period of time
economic growth is stronger when there is a boom

trade flows, investment flows, tnc's, financial flows, technology and confidence, interest rates and international organisations all strengthen the international business cycle.

as a result of globalisation countries are more dependent and 'tied' or in 'sync' with the international business cycle

stats:
increasing correlation between changes in stock market values in the US and European countries, which has risen to 0.9%.


Hope that helps

 

[rsingh]

Thanks for your help!