Specialisation and Comparative Advantage

You've looked at specialisation but there is some more detail here on the pros and cons of it.

A crucial concept for an Economist is Comparative Advantage though.  You MUST understand it and the impact it has on global trade and flows of goods, services and capital.

Follow the presentation through but also look at the Youtube clip to ensure that you can explain it both diagrammatically, numerically and in words!!

https://www.youtube.com/watch?v=Vvfzaq72wd0

https://www.youtube.com/watch?v=Vvfzaq72wd0

Balance of Payments

Read these articles for Friday Feb 26th on Hot Money and the UK's success in Financial Services.

Then bullet point your answers to the questions on the implications of the UK's improvement in Financial Services (slide 7) and the slide 8 points re US v China and finally the pros/cons of LT and ST Capital Flows

http://qz.com/188904/despite-china-exchange-rate-reform-its-hot-money-woes-are-still-scary/

http://www.financialdirector.co.uk/financial-director/news/2345704/london-ranked-best-financial-capital-in-the-world

http://qz.com/188904/despite-china-exchange-rate-reform-its-hot-money-woes-are-still-scary/

http://www.financialdirector.co.uk/financial-director/news/2345704/london-ranked-best-financial-capital-in-the-world

http://www.bbc.co.uk/news/business-13647945

http://www.theguardian.com/business/2014/sep/09/uk-trade-deficit-widens-unexpectedly

 

 

 

 

 

 

 

 

Global trade agreements

Read this article on attempts to create an agreement on trade between the US and the EU

http://www.bbc.co.uk/news/business-24965053

Trade patterns

We're looking at the effects of globalisation on different countries.  These impacts will differ depending on the stage of development of the countries.

The following presentation will give you information about the different effects on various countries.  Go through it in detail and then produce a plan for a 30 mark essay on "to what extent should developing economies feel threatened by the increasing economic power of  developed countries"

You need to submit this essay on Tuesday Feb 9th.

The structure should be:

• Reason for a developing nation (not) to be threatened (using specific examples from a developed/developing nation)
• Evaluation - why might this not be the case
• Repeat three times
• Conclusion - which of these threats is the greatest one and why.  Ensure you answer the question explicitly....i.e. "yes, developing nations should be extremely concerned.."