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Questions and Answers
What are the objectives of Year 12 Economics?
What are the objectives of Year 12 Economics?
The economic behaviour of individuals, firms, institutions and governments, the function and operation of markets, the operation and management of economies, and contemporary economic problems and issues.
Which of these is NOT a year 12 course topic in Economics?
Which of these is NOT a year 12 course topic in Economics?
What has been the trend in annual trade growth compared to economic growth?
What has been the trend in annual trade growth compared to economic growth?
Globalization has no effect on the economic issues faced by nations.
Globalization has no effect on the economic issues faced by nations.
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In 2022, Gross World Product (GWP) was estimated to be approximately $______ trillion dollars.
In 2022, Gross World Product (GWP) was estimated to be approximately $______ trillion dollars.
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What are major indicators of international integration?
What are major indicators of international integration?
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Study Notes
Global Economy
- Global economy: Changes in one economy have a ripple effect on others.
- GWP was $US 160 trillion dollars (PPP) in 2022.
- Globalisation: Integration of economies through trade in goods and services, financial flows, foreign direct investment, technology, transport and communication, the international division of labour and migration.
Trade in goods & services
- Trade has grown rapidly from US6.2trillionin1987(376.2trillion in 1987 (37% of global output) to US6.2trillionin1987(3743.8trillion in 2018 (50% of global output).
- Volume of world trade is 125 times its 1960 level.
- Dominated by manufactured goods (75%), but services are growing significantly: 17% in 1980 to 25% today.
- Australia is well-positioned for the growth in financial and communication services due to our strong business and commercial skills.
- East and Pacific regions saw an 8% point rise in their share of global trade between 1995 and 2016 (7% to 15%).
Financial Flows
- FOREX (Foreign Exchange Market)
- Foreign capital flows
- Banking interest rates
- FDI inflows
- Speculation on FOREX increases market volatility due to high volumes being traded.
- Speculators: investors who buy or sell financial assets for short-term profits.
- Herd behaviour amplifies market trends.
- 95% of Australia's currency is involved in speculative activity, making our exchange rate volatile.
- Global financial flows help countries finance domestic investment, particularly those with low national savings, enabling potential for economic growth.
- Recent years have seen growth in international capital flows after a decline during the GFC.
International Economic Integration
- International organisations and trading bloc agreements influence the global economy
- Development strategies impact the global economy in both contemporary and hypothetical scenarios.
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Description
Test your knowledge on the global economy, including key concepts such as globalization, trade in goods and services, and financial flows. This quiz will cover important statistics and trends that highlight the interconnectedness of economies around the world. Challenge yourself and see how well you understand these vital economic principles.
