A2 OCR Economics F585 June 2016

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Reply 620

Pato1

Need an extra week on economics -.-

Reply 621

SilverHorsey

Original post by Pato1

Need an extra week on economics -.-

i second that! got 13 hours to do it all, starting at midnight, hopefully everything goes in like

Reply 622

SilverHorsey

Original post by Faz The Poet

Also injection into economy can mean demand pull inflation i think

yeah thats true, and say that that depends on where the economy was to begin with and the size of the shift etc. as in f582

Reply 623

Loyle

Original post by SilverHorsey

i second that! got 13 hours to do it all, starting at midnight, hopefully everything goes in like

I swear you said you were going to start at 8, procrastination at its finest haha

Reply 624

SilverHorsey

Original post by Loyle

I swear you said you were going to start at 8, procrastination at its finest haha

tell me about it, i lie actually, ive learnt the definition of globalisation so have done a wee bit haha 8)

Reply 625

SilverHorsey

guys, for this question, is my response okay?

Analyse 2 factors that have caused globalisation. (6 marks)

One cause of globalisation is the fall in real transport costs, occurred due to innovation and greater privatisation of transport across the world. The increased use of containerisation for example has led to lower average transport costs. This has meant that MNC’s can locate in low wage, low cost economies and export production to other countries in order to maximise profit. This opens up new markets and creates more global trade links.

A second cause of globalisation is reduced trade barriers. The World Trade Organisation has encouraged countries to reduce tariff barriers and other forms of protectionism, so that they can specialise according to their comparative advantage. This opens up markets to more competition. Consumers have more choice of products from around the world as increased trade between countries is encouraged. Regional Economic groups such as the EU, despite using protectionism against non-members, have encouraged free trade between members leading to more interdependence.

Reply 626

Pato1

Refer to 2nd point as trade liberalisation

Reply 627

AFG-Gamer

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Yes lads

what's the difference between sustainable growth and long run growth?

Reply 631

SeaSquab

Original post by 24601jvj

what's the difference between sustainable growth and long run growth?

Sustainable growth is growth that does not prevent future generations from achieving growth, and long run growth is just an increase the the productive capacity of the economy (LRAS shifts out).

Reply 632

MrCoolVille

Prediction for 20 marker?

Reply 633

Berke0

Anyone got th plan for remittances ? Thought the exam was at 9 so came into college without my notes Lol. Sort m out pls

Reply 634

24601jvj

Original post by SeaSquab

Sustainable growth is growth that does not prevent future generations from achieving growth, and long run growth is just an increase the the productive capacity of the economy (LRAS shifts out).

so long run growth would enable sustainable growth?

Reply 635

Pato1

Original post by MrCoolVille

Prediction for 20 marker?

discuss whether reforms to the supply side are key to promoting long term economic growth

Reply 636

itisrising

The calm before the storm....

Reply 637

charlieoakley97

Original post by Berke0

Anyone got th plan for remittances ? Thought the exam was at 9 so came into college without my notes Lol. Sort m out pls

It's quite an easy one so start with giving the definition then move onto the pros:

Remittances can serve to increase incomes for the recipients in developing countries and acts as a top-up to income. This can then be spent on improving their material living standards e.g. buying a car etc. and/or can be spent on improving their non-material living standards e.g. greater access to schooling and education

Secondly, remittances can foster the growth of entrepeneurship as inididuals receving income top-ups via remittances may choose to set-up domestic businesses or purchase capital machiner- thus improving their own standard of living and alleviating poverty. Further, they may then employ other locals thus creating a multiplier effect further improving development and growth. Lastly, it can improve the quality of local schools and hospitals because remittance receivers might partly or directly give money to schools and hospitals where their children or relatives attend - thus improving development since it could improve school enrolment rates etc.

On the other hand, leads to a brain drain effect with high skilled workers emigrating to more advanced economies (DRAW LRAS DIAGRAM SHIFTING TO THE LEFT) therefore reducing incomes and labour force.

Remittances is almost all but sent directly to the families which means the Govt. gets no fiscal dividend from them which reduces Govt. spending on infrastructure, schools, hospital etc.

Could lead to a moral hazard - locals choosing not to work due to remittance income

Individual sums not large enough to fund large scale development progress

Conclusion: It's significant but needs ODA and FDI to fill the gaps