The Global Economy

IB HL

Financial Flows

• Exports and imports of goods and services in 2005 exceeded $26 trillion dollars.

• Developing economies still account for less than one-third of global trade.

• FDI and cross-border investment flows to developing economies have soared.

Factors Accelerating Globalisation

• Barriers to international trade and investment are coming down.

• Technological progress has dramatically cut transportation and communication costs.

• Some previously non-tradable services can now be traded easily.

Expanding Trade

• Between 1990 and 2005, growth in the overall global economy.

• The market share of low and middle income economies increased from 16% in 1990 to almost 30% in 2005.

• Between 1990 and 2005, merchandise exports between developing economies increased by 13%.

Activities

• Using Geography For The IB Diploma P 57-63, answer the following…

1. How important are Financial Flows and Trade etc. between the Developed Core, and Underdeveloped Periphery areas? Why?

2. Using Table 1 (P58/59), try to group the corporations into types of corporation then give reasons for which types of corporation generate the most money.

3. Using Figure 2 (P60), analyse and explain reasons for the trends shown in the graph.