1 Explain what is meant by globalisation, using recent trends to illustrate your answer.

Globalisation refers to the integration between different countries and economies and the increased
impact of international influences on all aspects of life and economic activity. This is seen in the
multiple international businesses that are in Australia such as the American clothing brands H&M
and Forever 21. As well as everyday products that are sold in Australia that are made in other
countries such as China.

2 Describe the role of trade flows in globalisation.

Trade flows is the fundamental relationship of globalisation as it is the integration between different
countries and economies. Through trade flows, it opens up countries to more potential for growth of
their economies, as foreign trade is a source of injection for the economy.

3 Summarise recent changes in the direction and composition of international trade in goods and
services.

- Global trade is dominated by manufacturers

- Finance and communication services are fast growing categories in economy
- High income economies trade has fell over time
- While East Asian countries trade are rapidly increasing

4 Explain how technology drives growth in trade of goods and services.

Technology allows trade of goods and services itself through transport technology. Through
advanced technology, trade to different countries are made more efficient and effective, this is also
same in the production of goods and services that make trading to other countries more profitable
as it can access more markets.
5 Explain the difference between investment flows and financial flows.
Both are the money flow between different economies and countries, with the difference being
investment flows being more long term while financial more short term.
6 Outline the role of foreign exchange markets in international financial flows.
Foreign exchange markets is what facilitates international financial flows, as foreign exchange
markets allow flow of money to go to different countries with the different currencies, as they
exchange currencies.
7 Discuss the role played by transnational corporations (TNCs) in globalisation.
Transnational corporations is an example and advocate of globalisation as they induce trade
between economies and countries as they break down barriers. This is seen in their production
which utilises products from different countries which shows globalisation.
8 Discuss the impact of globalisation on the international division of labour.
Globalisation can create more jobs, as it allows easier migration to other countries for jobs.
Globalisation also creates more jobs as transnational corporations can create jobs in other countries
as they operate in other countries. However this can also create exploitation of labour as the division
of cheap and lower skilled labour would be operated in less developed countries that have less laws
that promote human rights which allows businesses to exploit these employees as they are cheap
labour.
9 Explain how changes in the level of economic growth in one economy can impact
upon economic growth in other economies.
This is due to the relationship that the economies have with each other such as the finance and
investment flows that connect them together. They also have the trade of goods and services which
act as a source of income for countries, with the change of the level of economic growth in one
economy, it can also affect the other countries that it exports or imports with. This Is seen in many
events such as the global financial crisis and the Asian financial crisis.
10 Examine the performance of an individual economy over the past decade. Discuss
the extent to which this economy’s performance has reflected world economic
growth trends and the extent to which it has differed. Identify factors that might
explain these similarities and differences

China is a fast growing economy, being the world’s 2nd largest economy it has considerably become
an impactful country on the global economy. This is due to the multiple trade relationships that
China has with other and the investments that China has received, as well as have invested in other
countries. China’s transition from a manufacturing driven economy to become a consumer based
economy, will also be another factor that will increase the affect that China’s economy has on the
world’s economy.

China is the world’s leading manufacturer, meaning it has substantial control over the economic
growth trends. Other economies are dependent on the goods and services produced in China that
source the businesses in their country, which supply the demands of consumers. This displays the
impact that China has over the other countries economy, if China was to decrease productions, it
would then also decrease the overall world economic growth. The current growth of the world
economy can be linked to the China’s numerous trades with other countries that aid in the growth of
other economies as well as its own economy, which then contributes to the growing world economy.
The prices that China’s manufacturing set are also impactful on the world’s economy. The Cheap
manufacturing prices that China supply can create more volumes of goods to be produced at the
price. This displays the association that China has with the growth in the volume of world trade, with
it being the leading manufacturer. China is a major contributor to the growth of the world economy
through the various trades it has with other countries.

The state of China’s economy is also a factor that can impact the world economic growth trends due
to the various investments and trade that china has on other countries and vice versa. The multiple
transnational corporations that are in China are a source of income for the country that owns the
business. China’s huge population of consumers are an ideal target market for businesses, and
depending on China’s economy’s state, it can affect the survival of the business. The large income
that countries can generate from doing business in China, contributes to the country’s economy.
This then contributes to the world economic growth, displaying the impact that China has on the
world economic growth rate. China also has multiple investment in different countries, and with
those investments, it is used to contribute to the country’s economy. This is also similar with the
imports that China purchase from other countries that are also a source of income for the country’s
economy. An example of this is Australia’s leading mining industry in which China is the leading
buyer of the natural resource. Through China’s import of Australia’s natural resources, income can
be derived and used to contribute to Australia’s economy. This displays the impact China has on the
growth of global economies. The investments and trade that China receives and exports are a
contributing factor to the world economy, as it acts a source of finance for the country’s economy
that allows growth.

China is a very important economy that can impact the global economy with its numerous
relationships with other countries of trade and investment. The relationship China has with other
countries is a mutual benefit that leads to the growth of the world’s economy.