eco topic 1 yr 12: the global economy

gross world product (GWP)

sum of total output of goods and services by all economies in the world over a period of time

Ways to calculate GWP:

1.     Convert every country’s GDP into a single currency using the exchange rate

2.     Purchasing Power Parity (PPP) – adjusts for differences in prices – better measure of actual spending for people in developing countries

GDP

value of all final g.a.s produced in an economy over a period of time

Globalisation

integration between different countries and economies, leading to increased impact of international influence on all aspects of life and economic activity

what is trade in g.a.s or trade flows a measure of

Measure of how g.a.s produced in an economy are consumed in other economies around the world