Unit 4 A2 Economics "The Global Economy"

Unit 4 A2 Economics "The Global Economy"

1. Students will be able to compare and contrast how international trade is recorded and financed in different countries.

   • Identify the different components of the Balance of Payments.
   • Understand the factors influencing the size of deficits and surpluses on different components of the Balance of Payments
     • Students should be able to judge whether current account surpluses and deficits matter
     • identify measures to reduce such imbalances
     • Evaluate the significance of global imbalances
   • Interpret factors influencing exchange rates.
   • Outline the benefits and costs of monetary unions.
     • Identify the effects on the rate of inflation; unemployment; the Balance of Payments and economic growth

2. Students will be able to identify what are the causes and effects of globalisation countries.

   • Identify factors contributing to globalisation.
     • Define Trade liberalisation
     • analyse the impact reduced cost of communications
     • Outline he increased significance of transnational companies
   • Identify the benefits and costs of globalisation.
     • Interpret the issue of sustainability and environmental degradation as part of the costs of trading.
   • Recognize patterns of trade between developed and developing countries.
     • Evaluate changes in trade flows between countries and the reasons for them
   • Understand the benefits and costs of specialization, trade and the law of comparative advantage.
     • understand the distinction between absolute and comparative advantage
     • Explain significance of opportunity cost
     • illustrate numerically and diagrammatically comparative advantage
   • Critique the role of the World Trade Organization (WTO) in trade liberalisation
     • analyze the distinction between different types of trading blocs
     • evaluate conflicts between trading blocs and the WTO
   • Identify potential restrictions on free trade
     • define
       • Tariffs, quotas, non-tariff barriers, subsidies
     • Create a diagrammatic representation of tariffs
   • Analyze potential effects of protectionist policies on resource allocation

3. Students will evaluate how does a country economically competes internationally.

   • Compare measures of competitiveness.
     • Identify relative unit labour costs and relative export prices
   • Recognize factors influencing a country’s competitiveness.
     • Identify exchange rate; productivity; wage and nonwage costs; regulation.
   • Analyze government policy to increase international competitiveness.
     • : Identify measures to improve education and training; incentives for investment; deregulation

4. Students will be able to analyze what is poverty and inequality and evaluate its impact in developed and developing countries.

   • Compare and contrast absolute and relative poverty.
     • Design and evaluate the Lorenz curve
     • Compute the Gini coefficient
   • Identify measurements of inequality
     • analyze the causes and consequences of inequality and poverty in developed and developing countries

5. Students will be able to compare the limits to growth and development in developed and developing countries.

   • Students should be able to explain factors such as:
     • poor infrastructure; human capital inadequacies; primary product dependency; savings gap; inadequate capital accumulation; foreign currency gap; capital flight; corruption; population issues; debt poor governance; civil wars
   • Students should evaluate problems associated with declining terms of trade

6. Students will be able to evaluate the role of the state in promoting growth and development.

   • Evaluate the use of policies to achieve a countries economic objectives including macroeconomic stability.
     • Students should be able Identify fiscal policy’s to achieve budgetary objectives
     • Students should be able Evaluate the role of independent central banks to achieve inflation targets
     • Students should be able Identify supply-side policies used to achieve economic growth
     • Students should be able to create the AD/AS model introduced in Unit 2
     • Students should be able to analyze and evaluating these policies
     • Students should be able to critique problems facing policy makers when applying macroeconomic policies
   • Compares and contrasts the changing size and pattern of public expenditure in different countries.
     • Identify how the state might tax revenues to improve human capital
     • Identify different types of taxation: direct and indirect; progressive, proportional and regressive taxes
   • Explain how governments might use pubic expenditure and taxation to reduce poverty.
     • Students should analyze the possible link between changes in tax rates and tax revenues
   • Appraise the significance of the size of public sector borrowing and debt.
     • Students should compare the significance of differences in the state of public finances between countries

7. Students should be able to judge other measures used to promote growth and development.

   • Students should be able to explain factors such as:
     • Aid, Debt relief, Development of human capital, Inward looking/outward looking strategies, Free market/government intervention approaches, Industrialization; development of tourism; agriculture, Microfinance, Fair trade schemes
   • Students should be able to defend the role of international financial institutions and nongovernment organisations in promoting growth and development.