Karteikarten
GLOBALISATION NOTES
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- 1THEORY OF COMPARATIVE ADVANTAGEDefinition: Theory of CA states that countries should specialise in producing the gds & svs that they have lower opportunity cost in
Affected by opportunity cost & govt policy - 2How governments can improve export competitiveness1) Improving factor quality & quantity
2) Devaluation
3) Reduce domestic inflation
4) Export subsidies
5) Non-price factors - 3OPPORTUNITY COSTdef. cost of next best alternative foregone, using factor quality & quantity
Factor quantity: depletion of natural resources e.g Brunei
Factor quality: FDIs & tech, Education - 4Singapore's Pattern of Trade1) Trade pattern
Export Destination: HK, China, M'sia
Import destination: China, USA, SK
2) Volume & Composition
High-tech, skills-intensive goods such as oil refinery, biomedical, financial - 5Factors affecting Pattern of Trade1) Comparative Advantage
- when composition = opp cost
2) Demand-side reason
- composition = tastes & pref
3) Historical/Geographical reasons - 6Costs of increased flows of LABOURHigher competition for domestic industries --> Need for constant restructuring & innovation -->
sectors that cannot compete must relocate or outsource to lower cost --> structural unemployment
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- Beschreibung
- A levels Economics Karteikarten am GLOBALISATION NOTES, erstellt von Timothy Wan am 18/09/2017.
- Erstellt von
- Timothy Wan · Sep 2017
- Aktualisiert
- 18 Sep 2017
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