UNIT 4

Causes and Effects of Globalisation a) Causes of globalisation b) Effects of globalisation Trade and the World Economy a) Specialisation and comparative advantage b) Patterns of trade c) Terms of trade d) Trade liberalisation e) Restrictions on free trade Balance of Payments and Exchange Rates a) Balance of payments b) Exchange rates Poverty and Inequality a) Absolute and relative poverty b) Inequality The Role of the State in the Macroeconomy a) Public expenditure b) Taxation c) Public sector borrowing and public sector debt d) Macroeconomic policies Measures to Promote Growth and Development Limits to growth and development application points a) Market orientated strategies b) Government-led strategies c) Other strategies d) Role of foreign governments, international institutions and non-governmental organisations (NGOs) e) Constraints on growth and development