10.1 Globalisation
- Integration
of economies worldwide through trade, investment, technology, and culture.
- Benefits:
wider markets, efficiency, innovation, cheaper goods.
- Costs:
inequality, exploitation, environmental damage, vulnerability to global
shocks.
10.2 International Trade Problems
- Developing
countries often face:
- Dependence
on primary products (volatile prices).
- Lack
of diversification.
- Trade
deficits (imports > exports).
- Protectionism
from developed countries.
10.3 Exchange Rate Issues
- Floating
exchange rate: determined by the demand/supply of currency.
- Fixed
exchange rate: pegged by the government/central bank.
- Managed
float: mix of both.
- Depreciation
→ exports cheaper, imports costlier.
- Appreciation
→ exports costlier, imports cheaper.
- Volatile
exchange rates can destabilise economies.
10.4 International Institutions
- IMF:
provides loans, stabilises exchange rates.
- World
Bank: funds development projects.
- WTO:
promotes free trade, resolves disputes.
- Criticism:
may favour developed nations, impose strict conditions.
10.5 Economic Development
- Development
= improvement in living standards, not just GDP growth.
- Indicators:
HDI (health, education, income), literacy, life expectancy.
- Barriers:
poverty, inequality, corruption, and lack of infrastructure.
- Policies:
investment in education/health, fair trade, sustainable growth.
10.6 Trade vs Aid
- Trade:
long‑term growth, self‑sufficiency.
- Aid:
short‑term relief, but risk of dependency.
- Best
approach: aid targeted at building capacity for trade and development.
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