Economics Y12

globalisation

The increasing levels of economic intergration leading to the emergence of a global market.

Tariffs

a tax imposed by a national government on goods and services imported from another country

Monetary Union

free flow of goods and services, labour and capital (common market) and the addoption of a common curencey and shared monatary policy, made by a central bank.

Common market

Free flow of goods and services, aswell as labour and capital

Customs union

No trade restrictions between member countries and adopt the same trade restrictions for non-member countries

Free Trade area

No trade resrictions between member countries

Intra-regional

Trade within particular a region

Intra-industry

Trade within a particular industry

Developing/emerging economies

• In the process of economic expansion

• normally rapidly growing

• usually have poorer living conditions

• Average income of less than 40,000 p.a.

Developed ecnomies

• High levels of economic productivity/development

• Market based with free enterprise economic systems

• low government intervention

• Average income of over 40,000 p.a

G7/ Major advanced economies

USA, Japan, GErmany, France, UK, Canada, Italy

Hold 30% of world GDP, 33% of exports and 10% of population

Euro Area

• 19 countries in the European Monetary Union (EMU), 11% of world GDP, 26% of world exports and 4.5% of world population

Developing Asian Economies

30 Asian economies growing at a rapid rate, 33% of world GDP, 18% of exports and 48% of world population

Developing Subsaharan African economies

45 countries, high in natural resources make up 3% of world GDP, 1.7% of exporersa and 13% of world population

BRICS+

• Brazil, Russia, India, China, South Africa, Saudi Arabia, UAE, Argentina, Egypt, Iran

• Fastest growing economies

• goal of building dominance and reshaping global goverenmance into a multi polar world order that gives voices to the south.

• In general have poor conditions

OPEC

• Organisation of petrolium exporting countries

• Original founders: Iran, Iraq, Venezuala, Egypt, UAE, Saudi Arabia

• Control 70% of the worlds oil supply

OPEC benifits

• Coordinate the supply and sales of oil (provide nations with constant buyers ad the economy with a contant supply of oil)

• More barganing power

OPEC cons

• Loss of individual voice and autonomy (prices determined, amount sales determined)

• monomplises oil indusry (price gouging/ undercutting non member sellers)