The focus of this study is the operation of the global economy and the impact of globalisation on individual economies.
A student: H1 demonstrates understanding of economic terms, concepts and relationships H2 analyses the economic role of individuals, firms, institutions and governments H3 explains the role of markets within the global economy H4 analyses the impact of global markets on the Australian and global economies H5 discusses policy options for dealing with problems and issues in contemporary and hypothetical contexts H6 analyses the impact of economic policies in theoretical and contemporary Australian contexts H7 evaluates the consequences of contemporary economic problems and issues on individuals, firms and governments H8 applies appropriate terminology, concepts and theories in contemporary and hypothetical economic contexts H9 selects and organises information from a variety of sources for relevance and reliability H10 communicates economic information, ideas and issues in appropriate forms H11 applies mathematical concepts in economic contexts H12 works independently and in groups to achieve appropriate goals in set timelines.
Students learn to:
Examine economic issues
•examine the effects of globalisation on economic growth and the quality of life, levels of unemployment, rates of inflation and external stability •assess the potential impact on the environment of continuing world economic development •investigate the global distribution of income and wealth •assess the consequences of an unequal distribution of global income and wealth •discuss the effects of protectionist policies on the global economy
Apply economic skills
•analyse statistics on trade and financial flows to determine the nature and extent of global interdependence •assess the impact on the global economy of international organisations and contemporary trading bloc agreements •evaluate the impact of development strategies used in a range of contemporary and hypothetical situations.
Students learn about:
International economic integration
• the global economy • Gross World Product • globalisation – trade in goods and services – financial flows – investment and transnational corporations – technology, transport and communication – international division of labour, migration • the international and regional business cycles
Trade, financial flows and foreign investment • the basis of free trade – its advantages and disadvantages • role of international organisations – WTO, IMF, World Bank, United Nations, OECD • influence of government economic forums – G20, G7/8 • trading blocs, monetary unions and free trade agreements – advantages and disadvantages of multilateral (EU, APEC, NAFTA, ASEAN) and bilateral agreements
Protection • reasons for protection – infant industry argument, domestic employment, dumping, defence • methods of protection and the effects of protectionist policies on the domestic and global economy – tariffs, subsidies, quotas, local content rules, export incentives
Globalisation and economic development • differences between economic growth and economic development • distribution of income and wealth • income and quality of life indicators • developing economies, emerging economies, advanced economies • reasons for differences between nations • effects of globalisation • trade, investment and transnational corporations • environmental sustainability • the international business cycle.
Case study Undertake a case study of the influence of globalisation on an economy other than Australia, including an evaluation of the strategies used to promote economic growth and development in this economy.