Question spotting for F585 Economics The Global Economy OCR A level June 2011

Ahh can someone give me soo information on how liberalisaing that brings free trade to an economy, can affect poverty and development !

Ahh can someone give me soo information on how liberalisaing that brings free trade to an economy, can affect poverty and development !

I have a question.

Page 5

% fall in GDP from peak to trough

Where are those figures from?

They're NOT from the table - Ireland is not a 10.5% fall

They're not from the 10 year peak as Greece would not be 1.7%

So - where are those figures from?

Thank you

Slovakia...did Slovakia REALLY go from o.6% growth to 8.1% downturn...in ONE quarter? and then from 8.1% to growth of 1.2%???

In short: the world gains due to factor endowments/comparative advantage, economies of scale, increase in competitiveness, encouragement of FDI if protectionism is low. Developing countries benefit from this if they want export led growth.

Hope that helps.

Analyse why convergence can't happen? not in tutor2u but just wanted to know

Analyse why convergence can't happen? not in tutor2u but just wanted to know

Look at the end of the table on the right hand side its all there

convergence cant happen simply due to differences in Eurozone economies

Germany want to export cars whilst spain wants to attract tourists while italy wants to export clothes whilst france wants to export wine

a bit of a stereotypical hyperbole, but im sure you get what I mean

each economy involved in the EU in in a different trading market, each market will be different.

plus all Eurozone economies are in different fiscal positions some have positive current accounts, some have positive capital accounts and some are on the verge of bankruptcy altogether

Furthermore is that each Eurozone economy still has power to implement its own fiscal policy. This will greatly affect AD in different economies

For example, Greece chose to spend spend spend, investing into new infrastructure, new roads etc etc, while Germany took a more conservative approach and look to increase demand for exports. In the short term Greece would have had explosive growth and indeed it did, at the cost of unstable inflation and a rising fiscal deficit. Longer term-wise Germany was better off, The government chose to focus on creating export opportunities, improved supply side policies and LRAS and endured in more sustainable growth over the long term.

This ^ is the main reason why convergence cannot occur, due to political, economic and structural differences between EU members

They are there, yes, but how were they calculated? Looking at 2008 and 2009, those figures peak to trough do not give the stated figures. If you look back over ten years then the peak to trough figures do not match those percentages - the highest growth of Greece to the biggest recession is certainly not 1.7% so where are the figures from i.e. how were they calculated?

Thanks!

do you reckon the EU made a mistake of a monetary union handling all these countries ?

again from an economic standpoint its about weighing up the pros and cons of a monetary union *god i've been revising economics too much, literally every question I get asking I'm weighing up pros and cons lol*


But if you want a straight answer....YES!

They are there, yes, but how were they calculated? Looking at 2008 and 2009, those figures peak to trough do not give the stated figures. If you look back over ten years then the peak to trough figures do not match those percentages - the highest growth of Greece to the biggest recession is certainly not 1.7% so where are the figures from i.e. how were they calculated?

Thanks!