{draw:frame} Economics Stage 6 Syllabus 10 Content: Economics HSC Course 10.1 HSC Topic One — The Global Economy Students learn about: Features of the global economy Nature of the global economy and globalisation • the global economy • Gross World Product • globalisation – trade – investment and technology – finance – labour • the international business cycle Trade and financial flows • changes in the size, pattern and direction of trade and investment • the foreign exchange market • the main participants in foreign exchange markets • the impact of changes in trade and financial flows on economies Free trade and protection • the basis of free trade — its advantages and disadvantages • reasons for protection – infant industry argument – domestic employment – dumping – defence • methods of protection and the effects of protectionist policies on the domestic and global economy – voluntary export restraints – tariffs – subsidies – quotas – local content rules – export incentives Contemporary trading blocs and agreements • the role, importance and influence in the global economy of blocs and agreements • EU, NAFTA, APEC, ASEAN, CERTA International organisations • the role, importance and influence in the global economy of international organisations • WTO, IMF, World Bank Impact of globalisation on the standard of living in the global economy Variations in the standard of living in the global economy • income and Quality of Life indicators Contrasts in levels of development • difference between growth and development • reasons for differences between nations • developing economies, Newly Industrialised Countries (NICs), transition economies, high income economies Impact of globalisation • international convergence • economic growth, development and the quality of life • trade, investment and transnational corporations • distribution of income and wealth • environmental consequences • financial markets • the...