Plz Help Wif My Poor Economic Understanding. (1 Viewer)

[MeehShanku]

sup boyz n girls. i got some qustions to ask n hopefully u ppl can answer them for me. I know that some of them are supposed to be really easy, but yea im kinda behind.

Anyways, my first question is what role do transnational corporation play in the globalisation

 

[NoShadowKick]

invest overseas. people overseas send money back to the corporate based nation.

 

[monique66]

they are responsible for economic investment in other countries which also means financial flows, um..why do you ask? is this prelim or hsc stuff?

 

[Jago]

hsc.

TNCs increase the level of world trade and therefore the extent of globalisation because their production, operation and distribution may occur in a number of different countries.

 

[MeehShanku]

oh sweet thx ppl. i just asked because im tryin to revise for my economic half yearlies. Anymore things u ppl can suggest that i shold know?

 

[monique66]

what are you up to? i reckon u should study the first ch but not in too much detail (don't spend too much time on it) because its not the most important

 

[MeehShanku]

oh ok. umm... this question is about the exchange rate. how does an increase in the exchange rate increases inflation?

 

[monique66]

well (this is if you have done inflation- if not dun stress too much) what happens is that if imports become more expensive and/or the dollar depriciates, we are essentially importing inflation because it costs more to buy the same or less imports.

 

[MeehShanku]

si c thx. sry i took long to post, tryin to cram topic 1 n 2 in my head

 

[monique66]

cool, good luck with everything

 

[MeehShanku]

yea thx. just wonderin how long u gona stay on the net for? just incase i got questions

 

[monique66]

umm...dunno...just cruising atm...ask away...

 

[nick1048]

hsc.

TNCs increase the level of world trade and therefore the extent of globalisation because their production, operation and distribution may occur in a number of different countries.

I think this definition is most accurate. Take Microsoft for example, a TNC utilises the special skills of each independant country/economy to minimize production costs. They therefore comprise of a large proportion of contemporary trade and have only emerged because of the process of Globalisation.

 

[MeehShanku]

ok whats the difference betweem a fixed exchange rate and a managed flexible peg.

 

[nick1048]

this has been done before, fixed is decided upon on a weekly basis, the peg system is done every morning at 9:00am. For more details please use the search function.

 

[monique66]

umm...just off the top of my head something like:
fixed- the govt. hold meeting to determine the price of the currency and it is left like that for i dunno how long and usually (but not in the case of china) it is overvalued
peg- the govt. sets the price at 9am each morning (it might be in relation to another countries currency e.g. us)

 

[nick1048]

it's a week in Australia, and seeing as though our exam is in the australian context that's probably the most prefereable statistics to use

 

[monique66]

yeah...i just had my third exam and that was on inflation so i'm a bit rusty with everything else...

 

[nick1048]

lol no no your answers are most welcome, I haven't studied economics since last year and my half yearly is on wednesday, I'll get into some thorough revision tomoro ehhh . *feels ashamed*

 

[monique66]

oh well, it seems like u know what your on about good luck with everything, good thing about eco is that you can cram like hell (not that i'm suggesting u do it!)