Unit 4 – The Global Economy

You can find notes for Unit 4 here:

• Contextual Analysis

Causes and Effects of Globalisation

• a) Causes of globalisation
• b) Effects of globalisation

Trade and the World Economy

• a) Specialisation and comparative advantage
• b) Patterns of trade
• c) Terms of trade
• d) Trade liberalisation
• e) Restrictions on free trade

Balance of Payments and Exchange Rates

• a) Balance of payments
• b) Exchange rates

Poverty and Inequality

• a) Absolute and relative poverty
• b) Inequality

The Role of the State in the Macroeconomy

• a) Public expenditure
• b) Taxation
• c) Public sector borrowing and public sector debt
• d) Macroeconomic policies

Measures to Promote Growth and Development

• Limits to growth and development application points
• a) Market orientated strategies
• b) Government-led strategies
• c) Other strategies
• d) Role of foreign governments, international institutions and non-governmental organisations (NGOs)
• e) Constraints on growth and development