Macroeconomics – International Trade

Closed economy: – a country that does not take part in international trade is known as a ‘closed economy’. In a closed economy, the goods and services that its inhabitants can consume are limited to those which its own domestic resource base can produce. Similarly, demand is limited by the size of the population If…

Macroeconomics – Fiscal Policy

Fiscal Policy Fiscal policy is the use of government spending, taxation, and borrowing to affect the level and growth of aggregate demand, output, and jobs.  (borrowing is the difference between government spending and taxation revenue)  Fiscal policy can also allow for: changing the pattern of spending on goods or services means by which a redistribution…

Macroeconomics – Globalisation

Globalisation: refers to the free movement of goods and services, factors of production (predominantly labour and capital) and financial flows such as FDI and Hot money across international boarders, leading to the economic integration of the worlds economies through the erosion of national boundaries. Globalisation is conceptualised as a process that erodes national boundaries, integrates…