§-Module

Topic 1: The Global Economy

9 dot points across 2 inquiry questions, in syllabus order. Each dot point has a focused answer, with exam-style questions and worked answers where available.

What strategies can be used to promote economic growth and development?

Investigate categories of development including developed, developing, newly industrialised and emerging economies, and examine the factors affecting the growth of newly industrialised and emerging economies

Categories of development. Defines developed, developing, newly industrialised (NIE) and emerging economies, sets out how each is classified (GNI per capita, HDI, structure of output), and explains the factors driving NIE and emerging-economy growth with current data.

8 min read →

Investigate environmental sustainability and the global economy, including climate change, externalities, resource depletion, and global responses through international agreements and market-based and regulatory strategies

Environmental sustainability and the global economy. Explains negative externalities, market failure, the tragedy of the commons and greenhouse gas emissions, then evaluates market-based (carbon pricing, ETS) and regulatory global responses including the Paris Agreement.

11 min read →

Discuss the differences between developed and developing economies in terms of income levels and quality of life, and analyse how globalisation has affected economic growth and economic development unevenly across nations

Globalisation and economic development. Distinguishes developed from developing economies by income and quality of life, explains the Human Development Index, and analyses how globalisation has raised growth unevenly across nations, with current data.

8 min read →

How does the global economy operate and what are its key features?

Investigate the international and regional business cycles including the causes and features of synchronisation, the influence of trade, investment, finance and technology, transport and communication, government economic policies, and global influences on regional and country-specific cycles

International business cycle. Defines synchronisation, explains the trade, financial, technology and policy channels of transmission, and analyses the 2008 GFC and 2020 COVID-19 recession as case studies in synchronised global downturns.

10 min read →

Investigate the basis of free trade and its advantages and disadvantages including the theory of comparative advantage, the role of the World Trade Organisation, and the effects of trading blocs, free trade agreements and protection

Trade. Covers the theory of comparative advantage with a numerical worked example, the gains from trade, the role of the WTO and free trade agreements, and the four types of protection (tariffs, subsidies, quotas, local content rules) with diagrams.

8 min read →

Examine global financial flows including the size and pattern of capital flows, the role of the IMF, World Bank and United Nations, and the consequences of financial liberalisation for individual economies

Financial flows. Covers the size and composition of cross-border capital flows, the role of the IMF, World Bank and UN, and the consequences (positive and negative) of financial liberalisation for individual economies.

7 min read →

Examine the impact of investment, transnational corporations, technology and the movement of labour on the size and structure of the global economy

Investment, transnational corporations and labour movement. Covers FDI vs portfolio investment, how TNCs organise global value chains, technology's effect on tradeable services, and the causes and effects of international labour migration, with current data.

8 min read →

Examine the methods of protection used by governments, including tariffs, subsidies, quotas and local content rules, and analyse their effects on domestic and global markets

Protection. Covers tariffs, subsidies, quotas and local content rules side by side, a subsidy diagram, a tariff-versus-quota effects table, and current dated Australian and global protection examples.

8 min read →

Examine the features and trends of the international economy including the global economy and globalisation, gross world product, trade in goods and services, financial flows, investment and transnational corporations, technology, transport and communication, and the international and regional business cycles

Globalisation and the international economy. Defines globalisation across trade, finance, investment, technology and labour. Covers gross world product, the role of transnational corporations, and the international business cycle, with current data.

7 min read →