Fichas
General Revision cards
Fichas del conjunto (20)
- 1Causes of changes in the Exchange rateRelative inflation rates
Relative interest rates
State of economy
Speculation
Balance of payments balance - 2Factors influencing international competitivenessWage & non-wage costs
Real Exchange rate
Labour productivity
Infrastructure
Human Capital - 3Why large national debts/public sector net debts are badOpportunity cost for future generations
Financial crowding out
Danger of inflation - 4Benefits of globalisationGlobal output rises as countries trade where they have comparative advantage
Wider choice and price for consumers
Lower costs of production/EoS for producers - 5Advantages of protectionismProtect infant industries
Protect employment
Retaliation
Reduce current account deficit - 6Disadvantages of GlobalisationExploitation of labour
Increased inequality
Negative externalities
Exploitation of resources - 7Why a current account deficit mattersLarge persistent deficits show lack of international competitiveness
Lack of demand means fewer jobs
Has to be financed and the currency may depreciate - 8Why a current account deficit may not matterFree-floating ER can mean it will self-adjust
Can be financed by the financial account
Imports of capital equipment may benefit long term
May be short term - business cycle - 9Why does a current account surplus matterOne countries surplus is another's deficit
Currency may appreciate
Resources focused on export demand and so living standards may fall - 10Why a current account surplus may not matterFree-floating exchange rate should mean it will self-adjust
Indicates competitiveness
May be temporary due to business cycle - 11Capital marketMoney related policies:
reduction in corporation tax
deregulation of financial markets - 12Labour marketPeople and workers related policies:
improving human capital
reduction in unemployment benefits
reduction in income tax
reduction in power of trade unions - 13Product marketTrade and business related policies:
privatisation
promotion of new/small firms
trade liberalisation - 14Benefits of FDIHelp fund a current account deficit
Unemployment down due to TNC presence
Tax revenue from TNC's
Transfer of new technology/efficiency methods - 15Causes of a current account deficitChanges in exchange rate (appreciation)
Decrease in AD worldwide so exports fall (recession)
Inefficient production, therefore more expensive, exports decrease - 16Issues with supply side policiesPossible increased inequality (taxes and benefits)
Exploitation of workers (reduced power of trade unions)
Time lags
Possible ineffectiveness - 17Problem with a budget deficitIncreased national debt
Loss of AAA credit rating
Financial crowding out
Decrease in FDI - 18Effects of a weaker currencyCheaper exports
Dearer imports
Cost push inflation
Reduce unemployment - 19Methods of reducing a current account deficitReduce corporation tax
Improve infrastructure
Training and education - 20Problem with national debtLoss of AAA rating
Financial crowding out
Inflation
Decrease in FDI
Opportunity cost for future generations
Información
- Descripción
- A2 Economics A2 Fichas sobre General Revision cards, creado por jamesharding247 el 08/06/2014.
- Creado por
- jamesharding247
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