Economics Theme 4: A Global Perspective Detailed Spec. Content outlined to ensure you cover all content for your exams. The number 1 tool to ace your exams!
4.1.1 Globalisation
a) Characteristics of globalisation
b) Factors contributing to globalisation in the last 50 years
c) Impacts of globalisation and global companies on individual countries, governments, producers
and consumers, workers and the environment
4.1.2 Specialisation and trade
a) Absolute and comparative advantage (numerical and diagrammatic): assumptions and
limitations relating to the theory of comparative advantage
b) Advantages and disadvantages of specialisation and trade in an international context
4.1.6 Restrictions on free trade
a) Reasons for restrictions on free trade
b) Types of restrictions on trade:
- tariffs
- quotas
- subsidies to domestic producers
- non-tariff barriers
c) Impact of protectionist policies on consumers, producers, governments, living standards,
equality
4.1.8 Exchange rates
a) Exchange rate systems:
- floating
- fixed
- managed
b) Distinction between revaluation and appreciation of a currency
c) Distinction between devaluation and depreciation of a currency
d) Factors influencing floating exchange rates
e) Government intervention in currency markets through foreign currency transactions and the
use of interest rates
f) Competitive devaluation/depreciation and its consequences
g) Impact of changes in exchange rates:
- the current account of the balance of payments (reference to Marshall-Lerner condition and J
curve effect)
, - economic growth and employment/unemployment
- rate of inflation
- foreign direct investment (FDI) flows
4.2.2 Inequality
a) Distinction between wealth and income inequality
b) Measurements of income inequality:
- the Lorenz curve (diagrammatic analysis)
- the Gini coefficient
c) Causes of income and wealth inequality within countries and between countries
d) Impact of economic change and development on inequality
e) Significance of capitalism for inequality
4.3.2 Factors influencing growth and development
a) Impact of economic factors in different countries:
- primary product dependency
- volatility of commodity prices
- savings gap: Harrod-Domar model
- foreign currency gap
- capital flight
- demographic factors
- debt
- access to credit and banking
- infrastructure
- education/skills
- absence of property rights
b) Impact of non-economic factors in different countries
4.3.3 Strategies influencing growth and development
a) Market-orientated strategies:
- trade liberalisation
- promotion of FDI
- removal of government subsidies
- floating exchange rate systems
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