Year 12 Economics Revision
Topic 1
Definitions:
Global economy
Globalisation
GWP
TNC
WTO
Tariffs
Subsidies
Local content
OECD
NAFTA
Doha Round
EiG
GNI
PPP
HDI
FDI
IMF
OECD
Merger
Direction of trade
FOREX
Speculators
Financial flows
International
Business Cycle
Comparative advantage
Opportunity cost
Free Trade
Infant Industry
CERTA
EU
Bilateral
Multilateral
Composition of trade
Quotas
APEC
HIE
LDC
BRICs
Washington
Consensus
Economic
Convergence
Chapter 1:
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Definition of globalisation ( changes in the global economy)
Economic indicators – trade, finance, investment, labour, technology
Recent trends- last 20 years
International Business Cycle- global financial crisis
global recession
Discuss the impact of globalisation on the international business cycle
Chapter 2:
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Advantages and disadvantages of free trade (is there any hope)
Methods of protection- tariffs, quotas, subsidies, Local content rules, embargo
Trade agreements- multilateral (WTO) , regional (EU), bilateral(CERTA)
Free Trade vs Fair Trade – NAFTA and EU as trading blocs (not the good guys)
International Organisations- WTO ( Doha) , IMF, World Bank (can they help)
Discuss the effects of protectionist policies on the global economy
Chapter 3:
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Variations in living standards in the global economy (incomes, growth, development)
Advanced Economies, Emerging Economies, Developing Economies (hard to define
these days), Least Developed Economies
Causes of inequality in the global economy (who said Economics was fair)
Impact of globalisation on the - growth, development, trade, investment, TNCs,
inequality, financial flows, environment, international business cycle ( important)
Don’t forget your case study- impact of globalisation + strategies for development
Discuss the impact of globalisation on the standard of living in the global economy
Year 12 Economics Revision
Topic 2
Definitions:
Trends in direction and
composition of trade
Net capital importer
Direct Investment
Portfolio Investment
Structural Unemployment
Debit
Credit
Industrialised economies
Non- reversible
Financial Account
Current account
Foreign Equity
Foreign Debt
Net Foreign Liabilities
Debt trap
Debt servicing ratio
ETM
Political consequences
TOT
Debt serving cost
Flexible exchange
rate
expectations
Dirty float
Depreciation
Devaluation
Net
TCF
Structural change
Micro reform
Monetary policy
Managed flexible
peg
productivity
Living standards
BOP
Buy AUD
FOREX
Exchange rate
Export volumes
Export base
Average tariffs
Chapter 4:
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Australia’s place in global economy- trade, finance, investment
BOP- current account/capital & financial account (components and trends)
Debt trap cycle- Foreign debt + Foreign equity (relationship to CAD)
Issues and trends in BOP (what has been happening and why)
Consequences of CAD (is it all bad news or the result of globalisation)
Discuss the impact of changes in the global economy on Australia’s external stability.
Chapter 5:
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Australia’s floating exchange rate- demand and supply factors (lots of diagrams)
Appreciation and depreciation of AUD (more diagrams)
RBA intervention- direct and indirect intervention (diagrams again)
Fixed exchange rates ( not important/ there are other alternatives)
Positives and negatives of appreciation/ depreciation (most important)
Explain the relationship between a country’s exchange rate and its balance of payments.
Chapter 6:
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Government policies to reduce protection in Australia (use statistics)
Implications for individuals, firms and government (some good and some bad)
Future prospects for Australian industry in the global economy
Explain why Australian governments have adopted a long term strategy to reduce
protection.
Email address = rodgerk43@yahoo.com
Answers should be no more than 2 pages- answer as many as possible