Essay on study notes-eco

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Topic One
The global economy
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The global economy is all the economies of individual nations that are linked together rather than individual economies. The gross world product is the aggregate value of all goods and services produced worldwide in a year.
Globalisation involves the process of increased integration between countries and economies and increased impact of international aspects of life and economic activity.
§ International trade flows
The average level of trade growth has grown at three times the average rate of national economic activity.
Transnational Corporations are firms that operate in more than one country.
§ International finance
Growth of international finance has played crucial roles, because money can move between countries much quicker than goods and services. Financial flows have expanded substantially following financial deregulation around the world
§ International Investment and Technology
Foreign Direct Investment involves the movement of funds, which are directly invested into economic activity.
Technology has allowed for faster communication and trade between countries. It has given economies a better opportunity for better trade performances.
§ Internationalisation of the labour market
Labor cannot move around the world as quickly as money, goods and services, but there have still been slight increases in the movement of labor. One of the constraints has been the immigration policy of countries. High skilled workers are attracted towards the richest economies. Low-skilled workers are also in demand in advanced economies

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