ECONOMICS UNIT 3.

PLECT.

PROTECTIONISM (decline in)
LIVING STANDARDS (rise in real)
ECONOMIES OF SCALE
COMMUNICATION IMPROVEMENT
TRANSPORT IMPROVEMENT

BENEFITS OF GLOBALIZATION TO THE UK.

FIB.
Allowing for revision licence. 

FDI AT HIGH LEVEL.
INFLATION IS LOW
(B)PRODUCTIVITY RISES

COSTS OF GLOBALIZATION TO THE UK. 

HARDER FOR SMALL BUSINESSES TO ESTABLISH
UK OPEN TO EXTERNAL RISKS
JOB LOSS IN MANUFACTURING INDUSTRY. 

ADVANTAGES OF MNCs.

LATE.

LOWER LABOUR COSTS
ADVANTAGES FROM OTHER COUNTRIES' NATURAL RESOURCES
TRANSPORT/DISTRIBUTION COSTS
ENVIRONMENT MORE FAVORABLE FOR TAXES

DISADVANTAGES OF MNCs.

DELL

DEPENDENCY ON IMPORTS
EXPORT OF TECHNOLOGY
LOSS OF TAX REVENUE
LOSS OF JOBS 

ADVANTAGES OF INTERNATIONAL TRADE.

FICEL.

FOREIGN GOODS AVAILABLE FOR PURCHASE
INCREASE IN COMPETITION
CHOICE INCREASED
ECONOMIES OF SCALE
LOWER PRICES GOODS AND SERVICES

DISADVANTAGES OF INTERNATIONAL TRADE.

TAP.

TRANSPORT OF FINISHED GOODS/PARTS
AIR MILES
POLLUTION FROM "DIRTY" INDUSTARIES 

BENEFITS OF THE WTO.

CECE.

CHOICE INCREASE
EFFICIENCY INCREASES
COMPETITION
EXPORTS OF GOODS AND SERVICES 

REASONS FOR PROTECTIONISM.

PIMP'D
Like a pimp protects it's hoes, countries protect their resources.

PROTECTING JOBS
INFANT INDUSTARIES
MEGATIVE EXTERNALATIES
POLITICAL
'DUMPING

I-GRAPE.
So you know I-phones, I-pads, I-pods etc. well. they're really expensive. and and I-GRAPE is even more expensive...so you end up with a budget deficit.

INNOVATION (loss of)
-
GLOBALIZATION
RISE IN REAL INCOMES
ADVANTAGE IN INDUSTARIES (loss of)
PRODUCTIVITY AND INVESTMENT (low)
EXCHANGE RATE

FIXED EXCHANGE RATE.

• Where the country attempts to fix the exchange rate. This can be done in two ways.
  • Currency not allowed to be bought or sold abroad
  • The country's bank buying and selling it's own currency.

FLOATING EXCHANGE RATE.

• Exchange rate is determined by market forces. 

ADVANTAGES OF A SINGLE CURRENCY.

PETELS.

PRICE TRANSPARENCY
ELIMINATION OF EXCHANGE RATE RISKS
TRANSACTION COSTS (there aren't any)
EMPLOYMENT
LONG TERM PLANNING
SINGLE MONETARY POLICY

DISADVANTAGES OF A SINGLE CURRENCY.

RISL
Like Rizzle Kicks :)

RECESSION
INTEREST RATE CONTROL (no)
SENSITIVITY TO INTEREST RATES
LACK OF CONTROL OVER MONETARY POLICY. 

There is one big nemonic for this.

REJ LI.

DISADVANTAGES OF CHINDIA TO THE UK.

RAW MATERIALS MORE EXPENSIVE
ENVIRONMENTAL COSTS
JOB LOSSES

ADVANTAGES OF CHINDIA TO THE UK.

LARGER MARKET TO EXPORT TO
INCREASE IN CHOICE OF IMPORTS. 

ADVANTAGES OF A SINGLE MARKET.

'CES EM. (Says them)

COMPETITION
ECONOMIES OF SCALE
SPECIALIZATION

ECONOMIC GROWTH
MOVEMENT OF CAPITAL AND LABOUR

DISADVANTAGES OF A SINGLE MARKET.

John Can Cry Loudly.

JOB LOSS
CAPITAL LOSS
CHEAPER LABOR ABROAD
LOCAL FIRMS DRIVEN OUT. 

COSTS OF COMPETITIVENESS.

RAW MATERIALS COST
GOVERNMENT POLICIES
COST OF KEEPING UP TO DATE

HOW DO WE MEASURE EFFECTIVENESS?

FEC.

FDI
EDUCATION AND TRAINING
CURRENT ACCOUNT 

DRINK AND DRUG DEPENDENCY
FAMILY BREAK-DOWN
PERSONAL DEBT
EMPLOYMENT RELATED PROBLEMS
CHANGES IN GOVERNMENT POLICY
INADEQUATE PENSIONS
ACCIDENTS AND NATURAL DISASTERS WITH INADEQUATE INSURANCE
SOCIAL EXCLUSION 

UNIDUCE.

UNFAIR TRADE
NATURAL DISASTERS
ILLNESS
DEBT
UNFAIR LAND DISTRIBUTION
CONFLICT
EDUCATION AND TRAINING (lack of)