Help with 2 questions please! (1 Viewer)

[stellina91]

Hi guys,

Anyone who can help me with the following questions is a legend! I'm having trouble finding information.

a) Discuss the influence of the international business cycle on developing countries.

b) Assess the advantages of increasing economic interdependence between nations.


Thanks so much!

 

[nimssyk]

Well as for Q1 -

The int Business cycle affects growth of developed nations and therefore impacts on demand. With international convergence and ideas like competative advantage, any slowdown in demand somewhere could will the demand for imports - and therefore the possible exports of developing nations. This is more important as they are often engaged in the manufacturing or primary industries, usually some of the hardest to be hit by low growth rates...eg. australia when china's growth slowed.

Q2
Is refering to basicaly the benefits of globalisation - refer to easier access to labour, finance, increased world trade and foreign investment - then compare these with the disadvantages

eg. Availabillity of labour helps some countries fill gaps in their labour forces but also creates a "brain drain" effect on other nation (ie. there skilled workers move overseas)


Hope thats helps... i think that answers the q's....