ILO:
a) Use of fiscal policy, monetary policy, exchange rate policy, supply-side policies and direct controls in different countries, with specific reference to the impact of:
o measures to reduce fiscal deficits and national debts
o measures to reduce poverty and inequality
o changes in interest rates and the supply of money
o measures to increase international competitiveness
b) Use and impact of macroeconomic policies to respond to external shocks to the global economy
c) Measures to control global companies' (transnationals') operations:
o the regulation of transfer pricing
o limits to government ability to control global companies
d) Problems facing policymakers when applying policies:
o inaccurate information
o risks and uncertainties
o inability to control external shocks
a) Use of fiscal policy, monetary policy, exchange rate policy, supply-side policies and direct controls in different countries, with specific reference to the impact of:
o measures to reduce fiscal deficits and national debts
o measures to reduce poverty and inequality
o changes in interest rates and the supply of money
o measures to increase international competitiveness
b) Use and impact of macroeconomic policies to respond to external shocks to the global economy
c) Measures to control global companies' (transnationals') operations:
o the regulation of transfer pricing
o limits to government ability to control global companies
d) Problems facing policymakers when applying policies:
o inaccurate information
o risks and uncertainties
o inability to control external shocks
Macro economic policy research
Create a mind map of the economic problems that Argentina face and the fiscal, monetary & supply side policies that have been used to resolve it. This could be a useful country to choose in a 25 mark macro policy question.
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A life of boom and bust: Can Argentina break the cycle?
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The Faltering Economy of Argentina
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Macro economic policy examples
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Assess the impact of the Uk's austerity measures after the financial crisis of 2008. (10 marks)
Have austerity measures made the United Kingdom poorer?
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Assess the measures available to reduce poverty and inequality in the UK. (10 marks)
Why are so many children living in poverty in the UK? - BBC Newsnight
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Assess the effectiveness of interest rates to control inflation in Argentina. (10 marks)
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Assess the policies available to improve UK productivity. (10 marks)
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This country just raised interest rates to 60%
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Why solving Britain's productivity problem is key to Rishi Sunak's 2020 budget
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Macroeconomic policies to respond to external shocks
Explain the impact and possible policy response to a significant change in oil and/or commodity prices for Iraq.
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Falling oil prices: Is history repeating itself? BBC News
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Iraq: Oil price drop fuels economic crisis
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Explain the impact and possible policy response of the financial crisis for Greece.
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The Greek Debt Crisis - 5 Minute History Lesson
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Greece’s debt relief plans come at high price for residents
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Explain the impact and possible policy response to a serious political crisis affecting Venezuela.
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Oil and ruin — exodus from Venezuela | DW Documentary
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Running on empty: Venezuela fuel crisis hits Covid victims - BBC News
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Problems with Government intervention
Explain why policy decisions are hard for a Government to get right?
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The minimum wage: does it hurt workers? | The Economist
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Covid-19: how to fix the economy | The Economist
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Theory:
• Inaccurate information – inaccurate or out-of-date information could include on GDP, unemployment or the balance of payments on current account when setting interest rates.
• Risks and uncertainties – it may be difficult for the authorities to predict the impact of quantitative easing; or the impact of a country leaving the Eurozone. Further uncertainties relate to the future behaviour of consumers
or businesses in their spending and investment plans.
• Inability to control external shocks – in an increasingly globalised world in which countries are more closely integrated economically, it becomes more and more difficult for an individual country to isolate itself from external
shocks.
• Inaccurate information – inaccurate or out-of-date information could include on GDP, unemployment or the balance of payments on current account when setting interest rates.
• Risks and uncertainties – it may be difficult for the authorities to predict the impact of quantitative easing; or the impact of a country leaving the Eurozone. Further uncertainties relate to the future behaviour of consumers
or businesses in their spending and investment plans.
• Inability to control external shocks – in an increasingly globalised world in which countries are more closely integrated economically, it becomes more and more difficult for an individual country to isolate itself from external
shocks.
MNC/TNC's impact
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What are the potential economic benefits of an MNC and inward FDI? (10 marks)
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What are the potential draw backs to inward FDI from an MNC? (10 marks)
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Nissan Qashqai in figures
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The Case Against Shell: Landmark Human Rights Trial (Wiwa v. Shell)
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Measures to control an MNC
Assess why China have adapted their regulation towards the automotive industry? (10 marks)
Why Tesla Is Betting Big in China With a Shanghai 'Gigafactory'
Transfer pricing
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Explain what is meant by transfer pricing. (5 marks)
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Assess how a Government can regulate this behaviour. (10 marks)
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How does Nando's avoid paying tax in the UK? | Guardian Animations
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UK v Google - Paying the right Taxation (up to 11:30 min)
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TWE:
One limit to a government’s ability to control global companies is that many are ‘footloose’, i.e. they may be able to move to another country easily and with little cost.
International agreements such as TRIMS (Trade Related Investment Measures) introduced by the WTO have, for example, banned the use of local content requirements.
One limit to a government’s ability to control global companies is that many are ‘footloose’, i.e. they may be able to move to another country easily and with little cost.
International agreements such as TRIMS (Trade Related Investment Measures) introduced by the WTO have, for example, banned the use of local content requirements.