I just copied some of this stuff out..........all my notes are handwritten according to the syllabus, and this should help u understand
HSC Topic 1: The Global Economy
Features of the global economy
Nature of the global economy and globalisation
The global economy can be broken down into four main categories:
Developed or advanced industrialised economies (AIEs) e.g. USA, Japan. Usually dominate world output, trade and investment
Newly industrialised economies (NIEs) e.g. Singapore, Taiwan, South Korea. Achieved remarkable rates of growth in 1990s (6-8% p.a. average)
Developing or less developed countries e.g. India, China, Brazil. Low per capita incomes and living standards
Economies in transition. Former socialist economies e.g. Russia, Poland. Tried to increase world integration by seeking export markets and foreign investment
The global economy
The global economy refers to the international economy. It includes the links between national economies developed through increasing trade flows, flows of funds and flows of other resources and ideas. The global investment triad consists of the USA, Japan and Germany. These three economies, along with the rest of Asia and the EU, account for the majority of global output, trade and investment.
Gross world product
The gross world product (GWP) measures the value of production globally. It can be measured in two ways:
1. The value of world output in $US at market exchange rates
2. The value of world output in $US at purchasing power parities (PPP) this measure takes into account how much can be bought in one country with one unit of currency in comparison to another country i.e. the purchasing power
The advanced industrialised economies dominated world output, especially the Major Seven, or G7 i.e. USA, Japan, Germany, France, Italy, UK and Canada. The G7 had 46.5% or total world exports in 2001.
Globalisation
Globalisation refers to the process of increasing economic integration between countries, through the breaking down of international boundaries, leading to the emergence of a global market place. Globalisation was accelerated after WWII, and accentuated with the breakdown of communism in the late 1980s and early 1990s. The main characteristics of globalisation are:
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 1970s. The industrialised countries have