I The Global Economy
International economic integration
The global economy and Gross World Product
Globalisation
Trade in goods and services
Financial flows
Investment and transnational corporations
Technology, transport, and communication
International division of labour, migration
International and regional business cycle
Trade, financial flows, and foreign investment
The basis of free trade
Role of international organisations
World Trade Organisation (WTO)
International Monetary Fund (IMF)
World Bank
United Nations (UN)
Organisation of Economic and Cooperation of Development (OECD)
Influence of government economic forums
G20
G7
Trading blocs, monetary unions, and free trade agreements
Evaluating multilateral and bilateral trade agreements
European Union (EU)
Asia Pacific Economic Cooperation (APEC)
North American Free Trade Agreement (NAFTA)
Association of South-East Asian Nations (ASEAN)
Bilateral trade agreements
Protection
Reasons for protection
Methods of protection
Tariffs
Quotas
Subsidies
Local content rules
Export incentives
Effects of protectionist policies
Globalisation and economic development
Differences between economic growth and development
Distribution of wealth and income
Income and quality of life indicators
Reasons for differences between nations
Global factors
Domestic factors
Effects of globalisation
Trade, investment, and transnational corporations
Environmental sustainability
International business cycle
Case study: China
China's economic reform policy
Size of the Chinese Economy
China's Economic Development
China's International Trade
China and the Environment
II Australia's Place in the Global Economy
Australia's trade and financial flows
Value, composition, and direction of Australia's trade and financial flows
Trends in Australia's trade pattern
Trends in financial flows β debt and equity
Australia's Balance of Payments
Structure
Links between key balance of payments categories
Trends in the size and composition of Australia's Balance of Payments
Terms of trade
International borrowing
Foreign investment
Exchange rates
Measurement of relative exchange rates
Factors affecting the demand for and supply of AUD
Changes in exchange rates β appreciation/depreciation
Determination of exchange rates including fixed, flexible, and managed
Influence of the Reserve Bank of Australia on exchange rates
Effects of fluctuations in exchange rates on the economy
Free trade and protection
Australia's policies regarding free trade and protection
Australia's multilateral and bilateral free trade agreements
Bilateral Agreements
Multilateral Agreements
Implications of Australia's policies
Implications of other countries and trading blocs
III Economic Issues in the Australian Economy
Economic growth
Aggregate demand and its components
Injections and withdrawals
The simple multiplier
Measurement of growth through changes in real GDP
Sources of economic growth in Australia
Effects of Economic Growth in Australia
Increase in aggregate supply β improvements in efficiency and technology
Trends in the business cycle
Unemployment
Measurement of unemployment
Trends in unemployment
Types of unemployment
Causes of unemployment
Non-accelerating inflation rate of unemployment (NAIRU)
Main groups affected by unemployment
Effects of unemployment
Inflation
Measurement of inflation
Trends in inflation
Causes of inflation
Demand-pull inflation
Cost-push inflation
Imported inflation and inflationary expectations
Positive and negative effects of inflation
External stability
Measurement and causes of external stability
Current Account Deficit (CAD) as a percentage of GDP
Net foreign debt as a percentage of GDP
Net foreign liabilities as a percentage of GDP
Terms of trade
Exchange rate
International competitiveness
Trends and effects of external instability
Distribution of income and wealth
Measurement of distribution of income and wealth
Sources of income as a percentage of household income
Taxation, transfer payments, and other assistance
Sources of wealth
Dimensions and trends
Benefits and costs of inequality
Environmental sustainability
Ecologically sustainable development
Private and social costs and benefits
Public and private goods
Environmental issues
Preservation of the natural environment
Pollution
Climate change
Depletion of renewable and non-renewable resources
IV Economic policies and management
Economic objectives
Objective areas
Economic growth and quality of life
Full employment
Price stability
External stability
Environmental sustainability
Distribution of income
Potential conflict among objectives
Price stability vs. full employment
Economic growth vs. stability, sustainability, employment, and income distribution
Macroeconomic policies
Fiscal policy
Federal Government Budgets and budget outcomes
Effects of budgeting changes
Methods of financing deficits
Use of a surplus
Monetary policy
Purpose of monetary policy
Implementation of monetary policy by the RBA
Impact of changes in interest rates on economic activity
Impact of changes in interest rates on the exchange rate
Microeconomic policies
Rationale for microeconomic policies
Shifts in AS and efficiency
Effects of microeconomic policies
Product and factor markets
Regulation and deregulation
Competition policy
Labour market policies
Role of national and state systems
Dispute resolution
Arguments for and against the use of centralised and decentralised wages
Education, training, and employment programs
National and global context for environmental management
Regulations
Market-based policies
Targets set by international agreements
Limitations on economic policies
Time lags
Global influences
Political constraints
Policy responses and their effects in dealing with economic objectives
Economic growth and quality of life
Full employment
Price stability
External stability
Distribution of income
Environmental sustainability
V General Statistics
VI Exam Skills and Tips