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    1.1 1.2 Global Economy

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    Jimmy
    The document discusses the growth of the global economy through increased economic integration between countries, driven by factors such as deregulation, increased trade agreements and partnerships between nations, and the rise of multinational corporations operating across international borders. It also addresses some of the costs of globalization, such as job losses and hardship for industries facing competition from lower labor costs abroad, greater income inequality within countries, and increased volatility in global markets from economic and financial crises. The global economy encompasses all international economic activity and connections between the production, trade, investment, technology, finance, and labor of nations worldwide.

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    1.1 1.2 Global Economy

    Uploaded by

    Jimmy
    20 views11 pages
    The document discusses the growth of the global economy through increased economic integration between countries, driven by factors such as deregulation, increased trade agreements and partnerships between nations, and the rise of multinational corporations operating across international borders. It also addresses some of the costs of globalization, such as job losses and hardship for industries facing competition from lower labor costs abroad, greater income inequality within countries, and increased volatility in global markets from economic and financial crises. The global economy encompasses all international economic activity and connections between the production, trade, investment, technology, finance, and labor of nations worldwide.

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    The document discusses the growth of the global economy through increased economic integration between countries, driven by factors such as deregulation, increased trade agreements and partnerships between nations, and the rise of multinational corporations operating across international borders. It also addresses some of the costs of globalization, such as job losses and hardship for industries facing competition from lower labor costs abroad, greater income inequality within countries, and increased volatility in global markets from economic and financial crises. The global economy encompasses all international economic activity and connections between the production, trade, investment, technology, finance, and labor of nations worldwide.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    20 views11 pages

    1.1 1.2 Global Economy

    Uploaded by

    Jimmy
    The document discusses the growth of the global economy through increased economic integration between countries, driven by factors such as deregulation, increased trade agreements and partnerships between nations, and the rise of multinational corporations operating across international borders. It also addresses some of the costs of globalization, such as job losses and hardship for industries facing competition from lower labor costs abroad, greater income inequality within countries, and increased volatility in global markets from economic and financial crises. The global economy encompasses all international economic activity and connections between the production, trade, investment, technology, finance, and labor of nations worldwide.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 11

    International economic integration

    The global economy


    Success in the HSC Course
    • Read the paper + watch the news
    – (ABC News 24, and Business Lateline clips are available on
    www.abc.net.au)
    – SMH business, Australian Financial Review, The Economist

    • Keep your class notes up to date – don’t get lazy!

    • Practise test/essays – do them!

    • Maintain your statistics sheet – cash rate, inflation,


    unemployment, economic growth etc
    % of
    Rank Country GDP Global
    GDP
    United $19.4
    #1 States trillion 24.4%

    $12.2
    #2 China 15.4%
    trillion
    $4.87
    #3 Japan trillion 6.1%

    $3.68
    #4 Germany 4.6%
    trillion
    United $2.62
    #5 Kingdom trillion 3.3%

    #6 India $2.60 3.3%


    trillion
    $2.58
    #7 France trillion 3.3%

    #8 Brazil $2.06 2.6%


    trillion
    $1.93
    #9 Italy trillion 2.4%

    $1.65
    #10 Canada trillion 2.1%
    What is the global economy?
    • The Global economy is the world economy. It is the economic activity going on in the world. It
    includes all production, trade, financial flows, investment, technology, labour and economic
    behaviour in nations and between nations.

    How does it affect me?

    •Your boss offers you a new employment contract with lower wages and conditions because the firm
    has to compete with the cost of Chinese workers.

    •Your sister is sacked from her hospital job because of State Government cutbacks to health services
    to balance the budget to meet the demands of international credit rating agencies

    •You get melanoma or skin cancer because of the hole in the ozone layer created by the release of
    chemicals by refrigerators and aerosol cans all over the world.
    • •You log onto the internet for information or to go shopping.
    1.1 The growth of the world economy
    New global markets is further fueled due to:
    • deregulation of consumer and financial markets
    • Increased mergers and acquisitions of transnational corporations
    • Increased communication due to the internet and satellite communication
    • Bilateral and multilateral agreements between countries – Trading blocs (CETA, NAFTA –
    North America Free Trade Agreement)
    • Movement to privatisation 1. The actual movement across nations of
    •Trade
    •Investment
    •Technology
    •Finance and
    •Labour
    2. The capacity to move and the potential movement across
    nations of
    •Trade
    •Investment
    •Technology
    •Finance and
    •Labour
    Companies the size of countries
    Gross World Product
    • Global output rose by 5.4% in 2010, from
    then a steady decline down to 3.4% 2012
    and steady since then at 3.5% in 2015. It
    is now 3.1% to $80.640 trillion.
    • http://www.imf.org/external/datamappe
    r/index.php

    • Remember to note how the statistics are


    calculated…
    Two versions of globalisation
    • Stilwell
    • As either “the collapse of the significance of nation states as
    units on which political economic processes are based” or “the
    intensification of connections which link capital, labour and
    states”
    • Gittins
    • “The process by which natural and government created
    barriers between national economies are being broken down”
    The costs of Globalisation according to Gittins
    • Hardship for those in
    industries when labour is
    cheaper overseas.
    • Increased inequality World
    organisations TNC’s

    • Environmental concerns
    • Greater fluctuations in
    world markets (Asian crisis,
    US mortgage crisis, Global
    financial crisis)
    Over to you
    Q1-3

    • Refer to page p. 3-8 in the Riley textbooks in Edmodo under


    “economics essentials”

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