http://www.tutor2u.net/blog/index.php/economics/ en tutor2u.net Copyright 2012 2012-02-11T19:04:45+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-chinas-trade-engine-is-spluttering http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-chinas-trade-engine-is-spluttering#When:15:57:56Z New data suggests that the rapid growth of exports from China is once again slowing down. This Reuters business news video (2 minutes) provides some useful background information on the recent downturn in export and import volumes and mentions that rising imports and a shrinking trade surplus may help the Chinese to rebalance their economy and perhaps provide a demand stimulus for exporters from struggling European countries. That said the continued weakness of many EU countries will make it difficult for Chinese exporters to maintain sales and employment. During the global recession of 2008-09 millions of workers in Chinese manufacturing industry lost their jobs prompting many to return to their rural homelands in search of work and income. * Which industries in China are likely to be most affected by a reduction in the growth of exports? AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Balance of Payments, Emerging Economies, China Economy, Cycles and Shocks, Aggregate Demand, Global Economy, International Trade, 2012-02-10T15:57:56+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/a-backward-step-on-the-maldives-road-to-democracy http://www.tutor2u.net/blog/index.php/economics/comments/a-backward-step-on-the-maldives-road-to-democracy#When:21:39:34Z In development economics one of the issues that can often be a barrier to a country’s development is political instability, and it looks like the Maldives will be my case study this year. Read on to find out why AS and A2 Specifications, EdExcel Economics Unit 4, A2 Macro, Emerging Economies, Development Economics, 2012-02-08T21:39:34+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/china-bans-its-airlines-from-paying-eu-carbon-tax http://www.tutor2u.net/blog/index.php/economics/comments/china-bans-its-airlines-from-paying-eu-carbon-tax#When:05:52:33Z On 1st January this year, the EU introduced an Emissions Trading Scheme (ETS) which levies a charge on flights in EU airspace based on carbon emissions. They estimate that this will add between 2 and 12 euros to flight tickets. Airlines are required to purchase emissions permits, like utilities and heavy industry in the EU, and airlines that do not comply face fines of 100 euros for each tonne of carbon dioxide emitted for which they have not surrendered allowances. In the case of persistent offenders, the EU has the right to ban airlines from its airports. A2 Micro, Emerging Economies, China Economy, Business Economics, Environmental Economics, European Economy, Government Intervention, Indirect Taxes, Market Failure, Externalities, Transport Economics, 2012-02-06T05:52:33+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/russias-monopoly-power-over-gas-supplies http://www.tutor2u.net/blog/index.php/economics/comments/russias-monopoly-power-over-gas-supplies#When:08:47:23Z It has been a bit chilly in the UK for the last few days, but nothing compared to the temperatures as low as -35 which have hit parts of central and eastern Europe. Of course, they are used to far colder winters than us, and have different ways of dealing with the weather, but reliance on gas supplies from Russia for the majority of their heating fuel leaves countries including Bulgaria, Serbia and Bosnia vulnerable to disruption in that supply. AS Micro, Emerging Economies, Russia Economy, Business Economics, Monopoly, Market Failure, Externalities, 2012-02-05T08:47:23+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-winning-the-war-on-deforestation http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-winning-the-war-on-deforestation#When:08:18:52Z Justin Rowlatt from the BBC has been investigating some of the remarkable progress being made in controlling deforestation in Brazil. The battle focuses on an area known as the “arc of destruction” and the video reports here show the impact of a government making a clear commitment to tackling the issue and backing it up with force and with incentives. AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 3, EdExcel Economics Unit 1, A2 Micro, AS Micro, Agriculture, Emerging Economies, Development Economics, Brazil Economy, Cost Benefit Analysis, Environmental Economics, Global Economy, Government Intervention, Regulation, Teaching of Economics, 2012-02-05T08:18:52+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macrovideo-resources-on-human-development-data http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macrovideo-resources-on-human-development-data#When:22:10:37Z Here is a short collection of short video resources on measuring human development with specific reference to the annual human development report and to progress in improving welfare in countries such as Kenya and Brazil AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Emerging Economies, Development Economics, Brazil Economy, Economic Growth, Poverty and Inequality, Standard of Living, Teaching of Economics, 2012-01-31T22:10:37+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-growth-and-development-some-indicators http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-growth-and-development-some-indicators#When:01:18:08Z The dictionary definition of ‘development’ is to improve, to progress, or to grow – but development is not just about growth! It is concerned with the improvement of human welfare within an economy, and so it encompasses concepts such as the standard of living, cultural identity and political freedom. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 2, A2 Macro, AS Macro, Emerging Economies, Development Economics, 2012-01-31T01:18:08+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-signs-of-progress-for-zimbabwe http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-signs-of-progress-for-zimbabwe#When:21:04:02Z Just a few years ago the Zimbabwean economy was in collapse and meltdown and the political system on the point of disintegration under the disastrous handling of the dictator Robert Mugabe. When hyperinflation ruled, a sign once appeared in the toilets of a hotel in Harare, “please do not flush Zimbabwean dollars down the toilets” Three years since the creation of a coalition government, there are some tentative but notable signs of improvement. Inflation has fallen and the use of the US dollar and other regional currencies as legal tender has helped to finance essential imports of basic products. Unemployment remains above 75% of the labour force and there is huge absolute poverty, but the glimmers of hope are there as shown by this recent news report from AlJazeerah English. AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Emerging Economies, African Economy, Standard of Living, 2012-01-29T21:04:02+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-focus-on-china-trade-and-growth http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-focus-on-china-trade-and-growth#When:15:11:46Z Export demand can be an important driver of growth and development. For many years China has practiced export-led growth with exports accounting for over 40% of GDP. China ran a trade surplus with the rest of the world of around of $200 billion in 2009 – this looks huge, but is fairly modest as a share of GDP. The surplus on the balance of payment current account has diminished from over 10% of GDP in 2007 to less than 6% in each of 2010 and 2011. But China still has a structural trade / BoP surplus. AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, A2 Macro, AS Macro, Emerging Economies, China Economy, Cycles and Shocks, Aggregate Demand, Economic Growth, Global Economy, 2012-01-27T15:11:46+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-focus-on-china-inflation http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-focus-on-china-inflation#When:21:28:28Z The super-charged growth in China has brought about a rise in inflationary pressures and is a good example of the possible conflicts between rapid economic expansion and rising costs and prices. The Chinese government’s inflation target is 4% but inflation is a growing worry for the Chinese government – after some mild deflation in 2009 there has been acceleration in the consumer price index. Agricultural prices have been a key driver of inflation with food costs up 12% in the year to March 2011. For many commentators high inflation in China is a symptom of an over-heating economy with an unsustainable credit and property boom. Another factor behind high inflation is that Wages are rising fast in China – many economists believe that China has hit a point in its development at which demand for labour starts to grow faster than supply, creating labour shortages and pushing up salaries. This is known as a Lewis Turning Point. AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, A2 Macro, AS Macro, Emerging Economies, China Economy, Inflation and Deflation, 2012-01-26T21:28:28+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-focus-on-china-carbon-emissions-and-growth http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-focus-on-china-carbon-emissions-and-growth#When:21:18:23Z Rapid economic growth in China has led to a sharp rise in C02 emissions per head of population and also electric power consumption per capita. Per capita emissions remain well below those of rich advanced nations but China is now committed to improving the sustainability of her economic growth and also in making big advances in researching, testing, developing and investing in clean energy technologies as a source of future exports. According to the 12th Five-year Plan (covering the years 2011-2015) China aims to reduce energy consumption per unit of GDP by 16 percent in the five years to 2015. Carbon dioxide emission will drop by 17 percent if the plans are met. AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, A2 Macro, AS Macro, Emerging Economies, China Economy, Environmental Economics, Global Economy, 2012-01-26T21:18:23+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-focus-on-china-per-capita-incomes http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-focus-on-china-per-capita-incomes#When:21:07:18Z Per capita incomes in China are rising though still low by advanced-nation levels. China ranks at 119 in terms of average incomes, according to World Bank data (per capita incomes, PPP adjusted). But China is now the biggest car market in the world and there has been a huge rise in the sales of luxury goods to China (these products have a strong income elasticity of demand).  China wants to achieve a re-balancing of her growth – towards domestic consumption and away from exports. Another key aim of the plans for the next 5 years is a surge in market-driven entrepreneurial activity. Plus a continued shift towards higher-value, high-knowledge manufactured products. AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, Emerging Economies, China Economy, Cycles and Shocks, Aggregate Demand, Global Economy, International Trade, Poverty and Inequality, Standard of Living, 2012-01-26T21:07:18+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-focus-on-china-changing-economic-structure http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-focus-on-china-changing-economic-structure#When:20:56:59Z China has experienced fast growth in the last twenty years, in the last decade; the increase in Chinese GDP has been seven times the rise in the GDP of Japan. China has a new growth target of 8% pa for the next five years – a downgrading of growth but still way in excess of normal trend growth for any of the advanced economies such as the UK, Germany and the United States. In 2000, China’s accounted for 7.1% of the world’s total GDP (in PPP terms). By 2015 China will have a 19% share of global GDP. This is higher than any of the other BRIC nations AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 2, A2 Macro, AS Macro, Emerging Economies, China Economy, Economic Growth, Global Economy, 2012-01-26T20:56:59+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-focus-on-india-worlds-cheapest-computer http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-focus-on-india-worlds-cheapest-computer#When:20:29:20Z A few weeks ago came the announcement that an Indian business is finally set to launch the World’s cheapest tablet computer. This laptop device will sell for around 18 times less than the price of an iPad in London! How can a laptop be manufactured for less than $US 40? AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, Emerging Economies, Indian economy, Business Economics, Economies of Scale, Cycles and Shocks, Aggregate Supply, Economic Growth, Economics of Technology, Global Economy, International Trade, Market Equilibrium and Price, Nature of Supply, 2012-01-26T20:29:20+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-focus-on-india-supply-side-issues http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-focus-on-india-supply-side-issues#When:19:15:32Z The rapid growth of the India economy has been helped by her economy enjoying a number of supply-side advantages. That said there remain structural supply-side weaknesses that will limit her continued competitiveness and development. This blog looks at the plusses and the minuses. AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, AS Macro, Emerging Economies, Development Economics, Indian economy, Cycles and Shocks, Aggregate Supply, Economic Growth, Global Economy, Health Economics, Macroeconomic Policies, Supply-side policies, Teaching of Economics, 2012-01-25T19:15:32+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-can-china-stay-competitive http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-can-china-stay-competitive#When:18:07:29Z This new five minute video report from the Financial Times is excellent on the competitive pressures facing many manufacturing businesses located in southern China. Wages are rising quickly and some manufacturing businesses have already moved either to lower-cost locations within the Chinese economy or to other countries such as Bangladesh and Indonesia. But there are alternative approaches and this video emphasises the decision that some manufacturers have made to stay put but instead to move up the value chain and produce higher-end, higher-priced products for advanced western markets. Businesses are reluctant to move factories and sacrifice the human capital that has been accumulated over in some cases over thirty years. AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Emerging Economies, China Economy, Business Economics, Management Issues, Economic Growth, Global Economy, Manufacturing Industry, Market Equilibrium and Price, Nature of Supply, 2012-01-25T18:07:29+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-focus-on-india-economic-growth http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-focus-on-india-economic-growth#When:17:07:24Z This is the first of a short series of blogs focusing on economic growth and development in the Indian economy, Our first blog provides some background data and study videos on India. AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, AS Macro, Emerging Economies, Development Economics, Indian economy, Economic Growth, Global Economy, Standard of Living, 2012-01-24T17:07:24+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-population-shift-in-china http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-population-shift-in-china#When:16:27:44Z What happened in the UK in 1851, the United States in 1920 and in the World in 2008? These three years mark the estimated year when the size of a given urban population overtook the size of the rural population. And now China has reached this significant landmark. The Chinese Bureau for National Statistics reported recently that in 2011, the proportion of urban population reached 51.27 percent (1.3% higher than in 2010) with the urban population standing at 690.79 million persons, an increase of 21 million persons in a year. China’s rural population stood at 656.56 million persons and for the first time her urban population was 34.23 million persons more than the rural population. Click below for some study / teaching resources: AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Emerging Economies, Development Economics, China Economy, Cycles and Shocks, Aggregate Supply, Demography, Economic Growth, Global Economy, Poverty and Inequality, Standard of Living, 2012-01-23T16:27:44+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-exporting-to-the-booming-chinese-economy http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-exporting-to-the-booming-chinese-economy#When:14:47:32Z Before you read this blog please have a look at another blog written by our good friend Mark Johnston from New Zealand. Students of China and the US economy will find it fascinating! There are good grounds for no longer calling China an emerging economy - it has arrived! The multiple significance of the rapidly-growing Chinese economy is plain for all to see but for Britain, only a small percentage of our exports of goods and services go there and this must change if Britain is to fully engage with and benefit from the rising might of the Chinese consumer. AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Balance of Payments, Emerging Economies, China Economy, Business Economics, Cycles and Shocks, Aggregate Demand, Economic Growth, Global Economy, International Trade, Macroeconomic Policies, Trade Policies, Manufacturing Industry, UK Economy, 2012-01-23T14:47:32+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-illegal-logging-and-the-human-cost http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-illegal-logging-and-the-human-cost#When:07:43:53Z This news report looks at the human cost of an example of the tragedy of the commons - illegal logging in the south Philippines which contributed to tens of deaths from the effects of flash flooding. Ecosystems and economic prospects are damaged at the same time because of failures in environmental management. AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Agriculture, Emerging Economies, Development Economics, Environmental Economics, Market Failure, Externalities, Information Failure, Public Goods, Teaching of Economics, 2012-01-23T07:43:53+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-money-debt-and-the-new-world-order http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-money-debt-and-the-new-world-order#When:18:40:23Z “All money these days is really a form of debt from somewhere else. We know now in 2012 that our debts cannot be repaid in full.” Philip Coggan from the Economist was on fine form at the LSE last week when he spoke to a packed audience in the new academic building on the subject of his latest book. When trust in the monetary system breaks down we are in a very difficult place and, in a wonderfully broad historical sweep Philip Coggan offered some revealing insights into what a reformed global monetary system might look like in the years ahead. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, Emerging Economies, Cycles and Shocks, European Economy, The Euro, Financial Markets, Global Economy, Macroeconomic Policies, Monetary Policy, OECD Economies, Teaching of Economics, 2012-01-22T18:40:23+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-russia-joins-the-wto http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-russia-joins-the-wto#When:09:50:52Z I am using Russia’s entry to the World Trade Organisation in my teaching on international trade and development this term. It appear to be a significant moment for the global economy. Russia is the last member of the Group of 20 major economies to join, after China gained membership in 2001. Progress towards membership has been delayed by numerous geo-political issues not least the disputes with neighbouring Georgia. Joining the WTO involves making a commitment to the rules of the international trade system - for Russia as with other new members, this will mean reduced import tariffs, the staged elimination of industrial domestic and export subsidies, and better greater access to foreign companies. Russia will also have to improve adherence to international accounting standards. * Russia’s average bound tariff will be 7.3 percent for manufactured products (compared with 9.5 percent currently) * Farm tariffs will be 10.8 percent (compared with 13.2 percent currently) * Russia commits to zero export subsidies on agricultural products - to end by 2017 * Russia will privatise 100 pct of United Grain Company by 2012 * Russia will introduce duty-free and quota-free provisions for the least developed countries * Russia will eliminate preferential tariffs for carmakers making large investments in Russian-based production by July 1, 2018 * Russia plans to introduce International Accounting Standards How would you use a supply and demand diagram to show the impact of a fall in an import tariff? Russian exports as a share of her GDP has actually been on a declining trend in recent years. Will movements towards trade and foreign investment liberalisation reverse this through trade creation and FDI effects? How can a stronger commitment to becoming an open economy supprot higher living standards over time? What are the risks for Russia of WTO accession? AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, AS Macro, Emerging Economies, Development Economics, Russia Economy, Cycles and Shocks, Economic Growth, European Economy, Global Economy, International Trade, Macroeconomic Policies, Trade Policies, Oil and Gas, OECD Economies, Standard of Living, Teaching of Economics, 2012-01-22T09:50:52+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-look-upwards-to-find-the-next-downturn http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-look-upwards-to-find-the-next-downturn#When:03:34:05Z Correlation does not necessarily imply causation but analysts at Barclays Capital are worried that a surge in skyscraper construction in China and India might be a forward indicator of another burst of financial and economic distress. This report in the Independent covers their findings: “Clusters of building activity usually coincide with periods of easy credit, excessive optimism and rising land prices, which often occur before market corrections.” * India is scheduled to complete 14 new skyscrapers taller than 240 meters (787 feet) over the next five years from the current two * China will increase the number of skyscrapers to 141, from the current 75, by 2017 * London’s Shard is expected to be completed in 2012 – at 1,017ft, it will be the tallest building in Western Europe News video from the BBC: Skyscrapers ‘linked with impending financial crashes’ Guardian news video: Huaxi: the village that towers above China   AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Emerging Economies, Business Economics, Economies of Scale, Cycles and Shocks, Aggregate Demand, Capital Investment, Economic Growth, Global Economy, Teaching of Economics, 2012-01-16T03:34:05+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-frontier-markets-the-new-brics http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-frontier-markets-the-new-brics#When:11:30:20Z Emma Wall has a piece in the Telegraph today about Frontier Markets - 25 countries that have stock markets but because of their size, inexperience or political instability do not yet qualify for “emerging market” status. These are higher risk markets for investors but target countries that are gradually becoming more open to trade and investment and which have high grown potential. AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, Emerging Economies, Teaching of Economics, 2012-01-15T11:30:20+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-piracy-and-econ-development-in-somalia http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-piracy-and-econ-development-in-somalia#When:10:23:28Z A new year hat tip to Richard Coulthard from Handsworth Grammar School in Birmingham for spotting this BBC news article on the economic impact of piracy in Somalia. Richard comments that this is just what economic theory would predict after large increases in the money supply but from a quirky angle. Read: Somali piracy ‘boosts Puntland economy’ To access the Chatham House report from this which this news report is drawn, please click here AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, AS Macro, Emerging Economies, African Economy, Development Economics, Teaching of Economics, 2012-01-15T10:23:28+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/beyond-the-bike-the-importance-of-remittances http://www.tutor2u.net/blog/index.php/economics/comments/beyond-the-bike-the-importance-of-remittances#When:09:58:22Z Joseph is 29 years old and makes a living selling vehicle parts in the dusty trucker town of Igawu in Southern Tanzania. When he approached me during my breakfast and flashed 2 fresh $100 bills, I was naturally interested to know where they came from. I offered him a ride north to find out… Beyond the Bike - the Economic Cycle, AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, AS Macro, Balance of Payments, Emerging Economies, African Economy, Development Economics, Global Economy, Standard of Living, Teaching of Economics, 2012-01-15T09:58:22+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/chinas-newest-5-year-plan-and-how-it-could-change-the-world http://www.tutor2u.net/blog/index.php/economics/comments/chinas-newest-5-year-plan-and-how-it-could-change-the-world#When:00:57:34Z 5 year plans are synonymous with the command economies of the 20th century and although the Chinese economy bares little resemblance to what it did 30 years ago, the government still uses these plans as part of their oversight of a mostly market economy. Their latest “Weather Intervention” plan seeks to intervene in the economy on a grand scale, although not in the usual sense! Agriculture, Emerging Economies, African Economy, Development Economics, China Economy, 2012-01-13T00:57:34+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-competitive-advantage-in-trade-some-videos http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-competitive-advantage-in-trade-some-videos#When:11:43:21Z Here is a selection of short video clips that I use when teaching competitive advantage in markets and when introducing the factors that determine the competitiveness of UK producers in global markets. The focus here is on the UK economy but I will add some more videos to the blog as I work my way through this teaching topic. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, AS Macro, Balance of Payments, Emerging Economies, Business Economics, Cycles and Shocks, Aggregate Demand, Economic Growth, Economics of Technology, Global Economy, International Trade, Macroeconomic Policies, Supply-side policies, Teaching of Economics, UK Economy, Regional Economics, 2012-01-12T11:43:21+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-prezi-on-environmental-economics http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-prezi-on-environmental-economics#When:07:09:51Z This term I am teaching some environmental economics to my A2 groups. The link below provides access to a Prezi on aspects of environmental issues such as the Tragedy of the Commons and the economics of waste and pollution. I will be updating and extending the Prezi as I develop the lessons. I hope that it is useful. I will try to include as many examples as I can on European and Global issues to do with environmental issues - the beauty of a Prezi of course is the flexibility of ordering course materials and the chance to embed lots of vivid You Tube clips and images into the resource. AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 3, EdExcel Economics Unit 1, EdExcel Economics Unit 3, A2 Micro, AS Micro, Emerging Economies, Development Economics, Environmental Economics, Global Economy, Government Intervention, Market Failure, Externalities, Public Goods, Market Equilibrium and Price, Price Mechanism in Action, Teaching of Economics, 2012-01-11T07:09:51+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-natural-disasters-and-their-economic-impact http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-natural-disasters-and-their-economic-impact#When:23:57:42Z From tsunamis to tornadoes, from droughts to floods, 2011 was a particularly nasty year for natural disasters in many parts of the world. These natural disasters inevitably have demand and supply side effects affecting not just those countries affected but ripple impact across regions and in the broader global economy. The Al Jazeera news video report below provides a clear overview of some of the major natural climatic shocks of 2011 and could easily be used as an introductory resource to discuss what are some of the micro and macroeconomic effects in both the short and medium term. These include: * Effects on the stock of physical capital / infrastructure * Impact on a country’s human capital * Effects on commodity prices, export revenues * Effects on agricultural output, profits, investment, productivity * Ripple effects on manufacturing industries and energy supply/cost * Impact on state tax revenues and the costs of re-building and providing emergency financial support * Effect on the movement of population following extreme climatic events * Natural disasters and changes in the distribution of income / risk of poverty This Economist graphic (published in Jan 2012) looks at the human cost of natural disasters and claims that “the world has succeeded in making natural disasters less deadly.” AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, AS Macro, Agriculture, Emerging Economies, Cycles and Shocks, Aggregate Supply, Economic Growth, Environmental Economics, Global Economy, Government Intervention, Market Equilibrium and Price, Price Volatility, Teaching of Economics, 2012-01-07T23:57:42+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-low-cost-airlines-beat-the-recession http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-low-cost-airlines-beat-the-recession#When:20:57:39Z The global financial and economic crisis has created many problems for airlines - falling business and 1st class passenger revenues, increased insurance costs, problems in getting loan finance, volatile exchange rate and the challenges of steep increases in aviation fuel prices to name just a few. We could also add the shockwaves from the spring 2011 Japanese earthquake and tsunami, the Arab Spring and a decline in tourism, and the steadily deteriorating global economic outlook - with the Euro Zone crisis threatening a second recession for Western Europe. But discount airlines - carriers that offer no-frills and charge plenty for extras on top of low basic fares - seem to have fared pretty well despite the turbulent conditions. Many passengers now appear willing to sacrifice luxury for cheaper flights and there are plenty of news stories of low-cost airlines in Europe, Asia and Africa who are announcing expanded route maps for 2012 and beyond. What economic factors help explain the continued expansion of low-cost airline carriers? AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Emerging Economies, Business Economics, European Economy, Global Economy, Transport Economics, 2012-01-01T20:57:39+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-a-world-of-seven-billion-people http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-a-world-of-seven-billion-people#When:16:37:16Z Fergus Walsh from the BBC provides this really clear video info graphic on the expanding global population estimated to have exceeded seven billion during 2011 and forecast to rise to eight billion by 2025. AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, A2 Micro, AS Micro, Emerging Economies, Demography, Poverty and Inequality, 2011-12-30T16:37:16+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-development-issues-the-baby-boom-in-zambia http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-development-issues-the-baby-boom-in-zambia#When:16:33:41Z In this special report from BBC reporter Fergus Walsh, the rapid population growth in the African country of Zambia is examined. Population growth in the country is so quick that it could perpetuate deep poverty in the country despite relatively fast growth in recent years. In Zambia, the UN predicts that the population could triple by 2050, reaching 100 million by the end of the century. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, AS Macro, Emerging Economies, African Economy, Demography, Economic Growth, Poverty and Inequality, Standard of Living, Teaching of Economics, 2011-12-29T16:33:41+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/european-economics-resources-on-the-cap http://www.tutor2u.net/blog/index.php/economics/comments/european-economics-resources-on-the-cap#When:19:47:30Z This blog entry will provide a regularly updated set of links to resources to the European Union’s Common Agricultural Policy and attempts to reform this contentious and complex system of farm support. Check below for suggested links AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 3, EdExcel Economics Unit 1, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Micro, AS Micro, Agriculture, Emerging Economies, Commodities Markets, European Economy, EU Farming and Fishing, Government Intervention, Buffer Stocks, Government Failure, OECD Economies, French Economy, Market Equilibrium and Price, Price Mechanism in Action, Teaching of Economics, UK Economy, Regional Economics, 2011-12-28T19:47:30+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-brazil-overtakes-uk-in-economic-size http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-brazil-overtakes-uk-in-economic-size#When:09:36:59Z The Guardian has reported new research from the CEBR that Brazil is set to overtake the UK to become the sixth biggest economy in the world. The U.S., China, Japan, Germany and France occupy the top five places. Typically the Sun newspaper gets their economics muddled with this piece of sloppy writing “BRITAIN will fall to seventh in the league table of the world’s richest countries next year when it is leap-frogged by buoyant Brazil.” Brazil richer than the UK? The Sun is confusing the size of GDP with the level of real GDP per capita (adjusted to a purchasing power standard). And as our Timetric chart shows below there remains an enormous gap in average living standards between the UK and Brazil. AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Emerging Economies, Brazil Economy, Global Economy, Standard of Living, Teaching of Economics, UK Economy, 2011-12-26T09:36:59+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-human-capital-and-economic-growth http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-human-capital-and-economic-growth#When:16:06:44Z In A2 macroeconomics the underlying causes of economic growth and development and constraints on both of these are covered in more depth. One of the concepts students might be familiar with is that of human capital. I have always summarised the idea of human capital as being a measure of the overall quality of the human input available to produce goods and services in an economy. The ONS have published a new study on the value of human capital in the UK and they draw on a definition given by the OECD AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Micro, AS Macro, Emerging Economies, Development Economics, Economic Growth, Labour Market, International Trade, Macroeconomic Policies, Supply-side policies, Teaching of Economics, Tuesday Talks, UK Economy, Unemployment, 2011-12-23T16:06:44+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-prospects-for-the-african-economy http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-prospects-for-the-african-economy#When:20:47:49Z In recent times there have been several new reports focusing on growth and development prospects for the African continent. Contained within them is plenty of useful background analysis and comment for students and teachers who spend time looking at developments and issues affecting Africa as part of their economics studies. Follow the links below for more details: AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, AS Macro, Emerging Economies, African Economy, Development Economics, Commodities Markets, Economic Growth, Global Economy, Teaching of Economics, 2011-12-21T20:47:49+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/economics-of-deforestation http://www.tutor2u.net/blog/index.php/economics/comments/economics-of-deforestation#When:16:53:58Z The Human Development Report 2011 reported that deforestation is a severe problem. In the last two decades, Latin American and Sub-Saharan Africa have experienced severe forest losses, especially when compared to the rest of the world. For economists the economic and social costs of rapid deforestation represent a telling example of the tragedy of the commons where the pursuit of individual self-interest can risk a permanent destruction of natural resources that undermines the sustainability of communities and societies for current and future generations. The United Nations calculates that deforestation and degradation is responsible for nearly 20 per cent of global greenhouse gas emissions. Will the REDD programme make a difference? REDD stands for Reducing Emissions from Deforestation and Forest Degradation in Developing Countries and is designed to provide financial incentives funded by advanced nations for developing countries to preserve their forests and instead invest in low-carbon paths to sustainable development. The UN estimates financial flows of up to $30bn could come from REDD and related initiatives - the scheme effectively allows rich countries to offset their carbon emissions from domestic industries and consumers by funding clean low-carbon development projects in developing countries. But it is highly controversial and opposed by many organisations such as Friends of the Earth and the World Rainforest Movement. In this blog we have put together some web resources on the issue of deforestation - focusing on causation, consequences and also on some of the policy approaches that might work to bring about behavioural change. AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 3, EdExcel Economics Unit 1, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, A2 Micro, AS Micro, Agriculture, Emerging Economies, African Economy, Development Economics, Brazil Economy, Commodities Markets, Cost Benefit Analysis, Economic Growth, Environmental Economics, Global Economy, Government Intervention, Market Failure, Externalities, Public Goods, Teaching of Economics, 2011-12-20T16:53:58+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/economic-corruption-global-rankings-for-2011 http://www.tutor2u.net/blog/index.php/economics/comments/economic-corruption-global-rankings-for-2011#When:16:28:33Z The scale and depth of corruption - defined by Transparency International as the abuse of entrusted power for private gain varies greatly across the world. No country can ever score a perfect score for eliminating corruption from their economy but the annual rankings of perceived corruption provide a useful way of identifying the best and the worst performers (most of whom are plagued by extreme poverty, war and failed government). Systemic corruption damages human lives and can undermine almost everything that international organisations seek to do to promote development and poverty reduction. Several countries have made sizeable progress in tackling and reducing endemic corruption and are thus better placed to attract sustainable inward investment as part of their development strategies. Here is a link to a video on the Economic Corruption rankings for 2011 produced by Transparency International AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, AS Macro, Emerging Economies, Development Economics, Teaching of Economics, 2011-12-19T16:28:33+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-mobile-phones-and-african-economic-growth http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-mobile-phones-and-african-economic-growth#When:18:29:12Z The increasing access to and usage of mobile phones is said by many development economists to be having a significant impact on growth and development in many African countries. A 2005 London Business School study reported recently in the Guardian found that for every additional 10 mobile phones per 100 people in a developing country, GDP rises by 0.5%. The chart below tracks mobile phone ownership per 100 of the population for Sub Saharan Africa and also South Africa and Kenya AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Emerging Economies, African Economy, Economic Growth, Economics of Technology, 2011-12-18T18:29:12+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/millennium-development-goals-uneven-progress http://www.tutor2u.net/blog/index.php/economics/comments/millennium-development-goals-uneven-progress#When:10:03:24Z This blog brings together some recent videos on progress made towards meeting some of the Millennium Development Goals (MDGs). The Millennium Development Goals include ambitious targets to o Eradicate extreme poverty and hunger o Achieve universal primary education o Promote gender equality and empower women o Reduce child mortality and improve maternal health o Combat HIV/AIDS, malaria and other diseases o Ensure environmental sustainability and develop a global partnership for development AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, AS Macro, Agriculture, Emerging Economies, Development Economics, Demography, Economic Growth, Environmental Economics, Global Economy, Standard of Living, Teaching of Economics, 2011-12-18T10:03:24+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/great-economics-blog-to-follow-danny-quah http://www.tutor2u.net/blog/index.php/economics/comments/great-economics-blog-to-follow-danny-quah#When:09:03:57Z Professor Danny Quah from the London School of Economics has a superb blog and I recommend it heartily to economics teachers and students. It is particularly excellent for understanding developments in the global economy, not least Danny’s work in plotting the changing centre of gravity in the world economy over the long term. Here is the link to use. The LSE Public Events team has just released their programme for the New Year, there are plenty of really interesting talks coming up and you can access the Spring 2012 Events Programme by clicking on this link   AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, AS Macro, Emerging Economies, Economic Growth, Global Economy, OECD Economies, Teaching of Economics, UK Economy, 2011-12-15T09:03:57+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-india-the-road-ahead http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-india-the-road-ahead#When:13:13:11Z Here is a short 12 minute video on prospects for the India economy produced by economists at the International Monetary Fund. It covers some of the key current issues including high inflation in a supply-constrained economy, partial progress in reducing poverty and the impact that poor infrastructure has as a constraint on further growth and development. Click on the video link below AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, AS Macro, Emerging Economies, Indian economy, Cycles and Shocks, Aggregate Supply, Demography, Economic Growth, Global Economy, IMF, Teaching of Economics, 2011-12-07T13:13:11+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/africas-hopeful-economies http://www.tutor2u.net/blog/index.php/economics/comments/africas-hopeful-economies#When:08:02:15Z This month’s ‘Economist’ includes an excellent article which is well worth a read for development economists looking at this fascinating continent. A few statistics from the article follow and the full article can be found here. Emerging Economies, African Economy, 2011-12-04T08:02:15+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/jim-oneill-the-growth-map-economic-opportunity-in-the-brics-and-beyond http://www.tutor2u.net/blog/index.php/economics/comments/jim-oneill-the-growth-map-economic-opportunity-in-the-brics-and-beyond#When:20:15:33Z Jim O’Neill the Chairman of Goldman Sachs Asset Management has a new book published early next week and it looks like being a tremendous resource for teachers and students wanting to deepen their understanding of crucial changes in the global economy. The Telegraph has been publishing extracts from the book - to have a view please click on the links below: AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, AS Macro, Emerging Economies, Brazil Economy, China Economy, Indian economy, Russia Economy, Cycles and Shocks, Economic Growth, Global Economy, International Trade, OECD Economies, Teaching of Economics, UK Economy, 2011-11-22T20:15:33+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/stephen-king-great-article-on-macroeconomics http://www.tutor2u.net/blog/index.php/economics/comments/stephen-king-great-article-on-macroeconomics#When:20:08:27Z Stephen’s piece in the Independent on Monday would make for a terrific Unit 4 discussion with your A2 students. Here is the link to follow Ten things people thought they knew about economics You can follow all of Stephen King’s recent economics articles in The Independent by clicking here AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, Emerging Economies, Global Economy, OECD Economies, Teaching of Economics, 2011-11-22T20:08:27+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-pillars-of-prosperity-the-political-economics-of-development-cluster http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-pillars-of-prosperity-the-political-economics-of-development-cluster#When:23:21:19Z The limitations (or barriers) to economic development outlined in many A-level Economics text books will include factors such as primary product dependency, corruption, civil war, debt and human capital inadequacies. However, none will point towards the state’s ability to enforce contracts and protect property rights in conjunction with the state’s ability to raise tax revenue; but this is exactly what Timothy Besley and Torsten Persson have looked to prove in their new book, “Pillars of Prosperity: The political economics of development clusters.” AS and A2 Specifications, EdExcel Economics Unit 4, A2 Macro, Emerging Economies, Development Economics, 2011-11-14T23:21:19+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-china-and-india-notes-from-martin-wolf http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-china-and-india-notes-from-martin-wolf#When:10:05:08Z Pete Davies from Greenhead College attended a superb talk by Martin Wolf CBE (Financial Times) at Leeds Business School last week. The focus was on the Great Convergence between developed and emerging economies, and Peter kindly took some excellent notes from the talk which will be of great use to teachers and students covering this key globalisation / development topics. They can be downloaded below as a word file - many thanks to Peter for making them available through the blog! Martin_Wolf_Lecture_Oct_2011.docx AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, AS Macro, Balance of Payments, Emerging Economies, Development Economics, China Economy, Indian economy, Cycles and Shocks, Economic Growth, Global Economy, IMF, International Trade, OECD Economies, Standard of Living, Teaching of Economics, UK Economy, 2011-11-06T10:05:08+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/global-economy-making-it-clear http://www.tutor2u.net/blog/index.php/economics/comments/global-economy-making-it-clear#When:05:15:06Z I have just come across this page on the BBC website which act as a portal, collecting together a variety of stories around a topic, and is therefore really useful to refer students to. It is listed as a Special Report; I am not sure if it is new or not so apologies if you have been aware of it for a long time already; however, if you have not, it seems worth highlighting here. AS and A2 Specifications, AQA Economics Unit 4, A2 Macro, AS Macro, Emerging Economies, European Economy, International Trade, Teaching of Economics, UK Economy, 2011-11-02T05:15:06+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-should-tncs-make-full-disclosure-on-factory-wages http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-should-tncs-make-full-disclosure-on-factory-wages#When:17:05:41Z Peter Day’s World Business programme on BBC this week is an evocative report on the travels of two people who have explored where we get most of the clothes and the shoes adorned with global brands. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, Emerging Economies, Development Economics, Business Economics, Environmental Economics, Global Economy, Market Failure, Poverty and Inequality, Standard of Living, Teaching of Economics, 2011-10-30T17:05:41+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/top-10-resources-on-inflation-on-youtube http://www.tutor2u.net/blog/index.php/economics/comments/top-10-resources-on-inflation-on-youtube#When:12:37:22Z What follows is a list of the ten video clips I use when teaching inflation as a topic. They are a mixed bunch. Some are useful for class use, others work as pointers to a series of video clips from one producer. What I’ve tried to avoid, however, are links to the teach yourself Economics resources (though obviously they have their place) that are out there. AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, OCR AS Economics Unit F582, A2 Macro, AS Macro, Emerging Economies, Development Economics, Inflation and Deflation, Macroeconomic Policies, Monetary Policy, Monetarism, Poverty and Inequality, Teaching of Economics, Fun Friday, 2011-10-26T12:37:22+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/tour-of-the-us-income-distribution-the-l-curve http://www.tutor2u.net/blog/index.php/economics/comments/tour-of-the-us-income-distribution-the-l-curve#When:07:52:08Z Everyone knows about the Lorenz Curve but with the OWS events of late I came across the ‘L Curve”. The red line represents a graph of family income across the population. The height of the curve at any point is the height of a stack of $100 bills equalling that income. On the scale of the football field graph shown here the bottom 99% of the population measure their incomes in inches.  The top 1% measure their incomes as stacks of $100 bills feet or even miles high!  The total wealth of the few people in the vertical spike equals the total wealth of the rest of the population combined. AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 3, EdExcel Economics Unit 1, EdExcel Economics Unit 3, OCR A2 Economics Unit F585, A2 Micro, AS Micro, Emerging Economies, OECD Economies, US Economy, Poverty and Inequality, Standard of Living, Teaching of Economics, 2011-10-25T07:52:08+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-economists-attack-food-price-speculation http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-economists-attack-food-price-speculation#When:08:36:54Z Food prices are now rising by up to 10% a year in Britain and Europe and a new forecast from the United Nations predicts that prices can be expected to rise at least 40% in the next decade. Whilst conventional theories of changes in supply and demand conditions can be used to explain some of the increase in food prices, many economists are concerned that speculation by hedge funds and other investors has amplified the natural volatility of prices driving food prices away from fair values and contributing to a huge rise in global food poverty and hunger. These days, cocoa, fruit juices, sugar, staples, meat and coffee are all now global commodities, along with oil, gold and metals. Is this the moment to legislate to limit the scope for speculative activity in food markets? The video below provides an excellent introduction to speculation in food markets - it features Neil Kellard, Professor in Finance at the University of Essex AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, OCR A2 Economics Unit F585, AS Micro, Agriculture, Balance of Payments, Emerging Economies, Development Economics, Commodities Markets, Economic Growth, Financial Markets, Government Intervention, Buffer Stocks, Poverty and Inequality, Market Equilibrium and Price, Price Mechanism in Action, Price Volatility, Teaching of Economics, 2011-10-24T08:36:54+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-world-food-day http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-world-food-day#When:19:33:04Z Here is one of the short information videos launched by the World Bank on the occasion of World Food Day - excellent as an introduction to the economics of high and volatile world food prices. Every night, 1 billion people go to bed hungry because food is too expensive. AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 4, EdExcel Economics Unit 1, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, A2 Micro, AS Macro, AS Micro, Agriculture, Emerging Economies, Development Economics, Commodities Markets, Global Economy, Government Intervention, Buffer Stocks, Market Failure, Poverty and Inequality, Standard of Living, Teaching of Economics, 2011-10-16T19:33:04+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/keynes-prize-the-economics-of-cities-3 http://www.tutor2u.net/blog/index.php/economics/comments/keynes-prize-the-economics-of-cities-3#When:04:19:57Z In the third extract of the winning essay for the 2011 Keynes Prize in Economics, Ross van der Watt asks “What should be done to revitalise cities in decline?” AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, AS Macro, Emerging Economies, Development Economics, Economic Growth, Environmental Economics, 2011-10-15T04:19:57+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/can-the-invisible-hand-solve-africas-poverty http://www.tutor2u.net/blog/index.php/economics/comments/can-the-invisible-hand-solve-africas-poverty#When:21:51:10Z At last night’s Senior Economics Society at Oundle we had a riveting talk by Hywel Rees-Jones, Managing Director of CDC, which covered so many areas of the issues of development economics. The talk was entitled “Can the invisible hand solve poverty in Africa?” Whilst conceding that some of the statements were broad generalisations across a variegated continent, Hywel discussed some of the key issues facing Africa. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, AS Macro, Emerging Economies, African Economy, Development Economics, China Economy, Commodities Markets, Economic Growth, Environmental Economics, European Economy, Global Economy, Government Intervention, International Trade, Manufacturing Industry, OECD Economies, Teaching of Economics, 2011-10-13T21:51:10+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/keynes-prize-the-economics-of-cities-2 http://www.tutor2u.net/blog/index.php/economics/comments/keynes-prize-the-economics-of-cities-2#When:21:16:45Z In this second extract from his prize-winning essay, Ross van der Watt focuses on the question “Should Rapid Urbanisation in Developing Countries be encouraged or resisted?” AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, AS Macro, Emerging Economies, Development Economics, Economic Growth, Environmental Economics, Global Economy, Teaching of Economics, 2011-10-13T21:16:45+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/keynes-prize-the-economics-of-cities-1 http://www.tutor2u.net/blog/index.php/economics/comments/keynes-prize-the-economics-of-cities-1#When:21:12:31Z In this first extract of the winning essay in the 2011 Keynes Prize for Economics, Ross van der Watt asks “How important are Cities to Economic Growth?” Emerging Economies, Development Economics, Economic Growth, Environmental Economics, Global Economy, Teaching of Economics, 2011-10-12T21:12:31+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/the-return-of-protectionism http://www.tutor2u.net/blog/index.php/economics/comments/the-return-of-protectionism#When:07:21:00Z The US senate has pushed through the bill which aims to punish China for allegedly undervaluing its currency. Is passed into law it would allow Washington to impose tariffs on imports in order to protect its domestic industries. The role and impacts of tariffs and other forms of protectionism form a big part of the ‘international trade’ section of most Economics courses and this article could be a good starting point for those discussions. A2 Macro, AS Macro, Emerging Economies, China Economy, Exchange Rates, Macroeconomic Policies, Trade Policies, 2011-10-12T07:21:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/hard-choice-in-kenya http://www.tutor2u.net/blog/index.php/economics/comments/hard-choice-in-kenya#When:09:24:46Z This short video report from Will Ross for the BBC from the island of Lamu, considers a number of economic concepts. AS and A2 Specifications, AQA Economics Unit 1, AS Macro, AS Micro, Balance of Payments, Emerging Economies, African Economy, Cost Benefit Analysis, Cycles and Shocks, Government Intervention, International Trade, Market Equilibrium and Price, Nature of Demand, 2011-10-10T09:24:46+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-waste-mountains-as-above-ground-mining http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-waste-mountains-as-above-ground-mining#When:15:51:09Z This remarkable ten minute video is superb when you are studying or teaching the economics of recycling! Whereas recycle rates for metals and paper have been growing year by year, currently less than 10% of plastic trash is recycled—compared to almost 90% of metals— in part because of the complicated and costly problem of finding and sorting the different kinds. AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 3, EdExcel Economics Unit 1, EdExcel Economics Unit 3, A2 Micro, AS Micro, Emerging Economies, Development Economics, Business Economics, Environmental Economics, Market Failure, Externalities, Teaching of Economics, 2011-10-06T15:51:09+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/the-bicycle-a-merit-good-and-an-integral-part-of-sustainable-transport-solu http://www.tutor2u.net/blog/index.php/economics/comments/the-bicycle-a-merit-good-and-an-integral-part-of-sustainable-transport-solu#When:18:19:53Z A recent economic study1 found that bicycle ownership can boost household income in sub-Saharan Africa by 35%.  I may be biased given my passion for cycling but I think there are indeed some very strong economic arguments for encouraging more bicycles both in the developing and the developed world. The bicycle: more than just a mode of transport Beyond the Bike - the Economic Cycle, A2 Macro, A2 Micro, AS Macro, Emerging Economies, African Economy, Economic History, Environmental Economics, Macroeconomic Policies, Monetary Policy, Supply-side policies, Market Failure, Externalities, Merit & De-Merit Goods, Transport Economics, Unemployment, 2011-10-05T18:19:53+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/currency-manipulator http://www.tutor2u.net/blog/index.php/economics/comments/currency-manipulator#When:15:31:13Z The U.S came closer to finally calling the Chinese a currency manipulator and retaliating in the new round of protectionism fears. A good summary of the key issues here. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, Emerging Economies, China Economy, Exchange Rates, Global Economy, Macroeconomic Policies, Monetary Policy, Trade Policies, OECD Economies, US Economy, 2011-10-04T15:31:13+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-producing-coffee-kenya-in-pictures http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-producing-coffee-kenya-in-pictures#When:10:06:27Z If you are teaching the economics of commodity prices and coffee in particular - this resource - will appeal strongly to your visual learners! The Guardian Pictures web site has a quite stunning set of photos of Kenyan coffee producers - growers who are hoping that rising world prices will bring respite after years of difficulty including volatile crop yields, poverty prices and incomes and a long term decline in investment. AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, Agriculture, Balance of Payments, Emerging Economies, African Economy, Global Economy, Credit Crunch, Market Equilibrium and Price, Price Mechanism in Action, Price Volatility, Teaching of Economics, 2011-10-04T10:06:27+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/a2-macro-protectionism http://www.tutor2u.net/blog/index.php/economics/comments/a2-macro-protectionism#When:16:51:06Z Here is an interesting, if slightly challenging, article for the A2 macro economists on protectionism and the state of the global economy in the Telegraph: Protectionism beckons as leaders push world into Depression AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, Emerging Economies, Global Economy, International Trade, Teaching of Economics, 2011-10-03T16:51:06+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-when-china-met-africa http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-when-china-met-africa#When:05:14:07Z Film-makers Marc Francis and Nick Francis won many plaudits and awards for their wonderful documentary Black Gold - uncovering the struggles of coffee farmers in Ethiopia to sustain their businesses against the monopsony power of multinational coffee roasters. They have a new film being released in the UK this autumn - When China met Africa. On the front line of China’s foray into Africa, the lives of a farmer, a road builder, and a trade minister reveal the expanding footprint of a rising global power. Watch the trailer using the link below. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, Emerging Economies, African Economy, China Economy, Global Economy, International Trade, Standard of Living, 2011-10-02T05:14:07+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/why-have-teachers-in-acapulco-mexico-been-on-strike-for-over-three-weeks http://www.tutor2u.net/blog/index.php/economics/comments/why-have-teachers-in-acapulco-mexico-been-on-strike-for-over-three-weeks#When:17:03:32Z Not only is this a good starter question to challenge your students- especially since the story hasn’t really made it into the headlines in this country- but it also has the potential to be a useful case study for development economics. Read on to find out the answer. A2 Macro, Emerging Economies, Development Economics, 2011-10-01T17:03:32+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-science-cities-and-external-economies-of-scale http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-science-cities-and-external-economies-of-scale#When:12:14:59Z This feature article from the BBC web site is essentially about the vital importance of high-knowledge industries in sustaining competitiveness and growth in a globalising world. Europe lags behind many emerging countries in terms of the resources devoted to science and technology, research and development and creative industries in particular. But the article makes reference to the expansion of science cities - knowledge clusters that bring together higher education expertise and entrepreneurial zeal - their number continues to grow from California and Boston in the USA, Cambridge in the UK, Education City in Qatar, Science City in Zurich and Digital Media City in Seoul. All good examples to use of the commercial leverage from external economies of scale in high-tech industries. AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, Emerging Economies, Business Economics, Economies of Scale, Economic Growth, Economics of Technology, European Economy, Single Market, Global Economy, International Trade, Macroeconomic Policies, Supply-side policies, Manufacturing Industry, Teaching of Economics, UK Economy, 2011-09-29T12:14:59+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-imf-flags-up-risks-of-double-dip http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-imf-flags-up-risks-of-double-dip#When:19:16:00Z Here are some of the salient points from the gloomy World Economic Forecast from the IMF which argues that the global economy has entered a dangerous phase. The IMF report highlights many of the vulnerabilities facing both developed and emerging economies. In Britain the media is emphasising a sizeable reduction in the forecast rate of growth for the UK for 2011 and 2012. Real GDP in the UK is likely to expand by just 1.1% in 2011 and 1.6% next year and the IMF economists say that there is a one in five chance of a double dip recession. Weak growth is terrible news for the Chancellor who is hoping for a significant expansion of the private sector to offset fiscal cuts and to meet the targets for fiscal deficit reduction. It is also awful for prospects of a meaningful reduction in unemployment and prospects of tackling the structural issue of very high youth unemployment rates. Incidentally that risk of a double-dip is thought to be much higher in the United States where the probability of a second recession following a partial recovery is put at 40%. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, Emerging Economies, Cycles and Shocks, Global Economy, IMF, Credit Crunch, Teaching of Economics, UK Economy, Recession Watch, 2011-09-20T19:16:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-bangladesh-and-comparative-advantage-in-textiles http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-bangladesh-and-comparative-advantage-in-textiles#When:19:51:00Z Many thanks to Pete Davies from Greenhead College, Huddersfield for pointing out a stunningly good article on the shift of manufacturing for garments towards the low-labour cost Bangladeshi economy. Read: Bangladeshi apparel gains from China’s rising costs - there is so much in this article about the relative cost differences and the importance of trade in garments for the Bangladesh economy, especially now that the European Union (EU) has allowed duty-free access to Bangladeshi clothes into the single market since the start of 2011. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, AS Macro, Emerging Economies, Development Economics, Economic Growth, Global Economy, International Trade, Standard of Living, Teaching of Economics, 2011-09-19T19:51:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-economic-growth-and-inequality http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-economic-growth-and-inequality#When:20:48:01Z Not all of the benefits of growth are evenly distributed. A rise in real GDP can often be accompanied by widening income and wealth inequality in society that is reflected in an increase in relative poverty. “Although economic growth in China has created vast wealth for some, it has amplified the disparities between rich and poor. Although the average wealth per Chinese citizen was $17,126 - almost double that of other high growth economies such as India - median wealth was just $6,327. In 2010, China’s Gini-coefficient stood at 0.47. Inequality in China has now surpassed that in the United States.” Source: Dr Damian Tobin School of Oriental and African Studies AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, Emerging Economies, Development Economics, China Economy, Economic Growth, Global Economy, Macroeconomic Policies, Poverty and Inequality, 2011-09-14T20:48:01+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-human-development-index-hdi http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-human-development-index-hdi#When:20:41:00Z The Human Development Index (HDI) forms part of the annual human development report and is a composite measure of economic and social welfare that has three main components. At its most basic it focuses on longevity, basic education and minimal income and progress made by countries in improving these three outcomes. The inclusion of education and health indicators is a sign of successful government policies in providing access to important merit goods such as health care, sanitation and education. 1. Knowledge: First an educational component made up of two statistics – mean years of schooling and expected years of schooling 2. Long and healthy life: Second a life expectancy component is calculated using a minimum value for life expectancy of 25 years and maximum value of 85 years 3. A decent standard of living: The final element is gross national income (GNI) per capita adjusted to purchasing power parity standard (PPP) “Human development is the expansion of people’s freedom to live long, healthy and creative lives; to advance other goals they have reason to value; and to engage actively in shaping development equitably and sustainably on a shared planet. People are both the beneficiaries and the drivers of human development, as individuals and in groups” Source: HDR Report, November 2010 AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, Emerging Economies, Development Economics, Economic Growth, European Economy, Global Economy, International Trade, 2011-09-13T20:41:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-progress-towards-millennium-goals http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-progress-towards-millennium-goals#When:17:14:00Z The Centre for Global Development has just released fresh research on the extent of progress towards the Millennium Goals. This is the link to a set of inter-active charts and data available to download in excel format. An ideal site for student-centred research on this key topic. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, AS Macro, Emerging Economies, Development Economics, Economic Growth, Global Economy, Teaching of Economics, 2011-09-12T17:14:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-inequality-and-development http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-inequality-and-development#When:17:10:00Z The September 2011 edition of the IMF’s Finance & Development magazine focuses on developments in inequality and the impact of the widening gap between rich and poor on development programmes and growth. The headline article is by Branko Milanovic who looks at changes in income inequality over the last twenty-five years. A rich resource for students and teachers wanting updates on this key aspect of globalisation. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, Emerging Economies, Development Economics, Economic Growth, Global Economy, Poverty and Inequality, Teaching of Economics, 2011-09-12T17:10:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/starter-video-the-slums-of-manilla http://www.tutor2u.net/blog/index.php/economics/comments/starter-video-the-slums-of-manilla#When:14:56:00Z I have used this remarkable 14 minute report from Paul Mason from BBC Newsnight in both my AS and A2 teaching. It prompts plenty of discussion about housing as a need (and a want) and whether the continued existence and growth of informal settlements (slums) is sustainable and preferable to state spending on slum clearance. Geography students (most of whom will study the economic geography of slums) see many connections with economics. The report is superbly edited and ties in well with lessons on concepts of absolute and relative poverty and the extent to which forces of globalisation are driving millions more poorer people away from rural areas into the slums. Colleagues with IWBs who want to bring up relevant background information on the economy of the Philippines might want to make use of the Timetric data page for this country. Here is the link. AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 4, EdExcel Economics Unit 1, EdExcel Economics Unit 4, A2 Macro, AS Micro, Emerging Economies, Development Economics, Environmental Economics, Global Economy, Poverty and Inequality, Teaching of Economics, 2011-09-11T14:56:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/mixing-with-the-nobel-economists http://www.tutor2u.net/blog/index.php/economics/comments/mixing-with-the-nobel-economists#When:17:10:00Z Is Europe and the United States facing a decade of very slow growth as their economies struggle to emerge from the global financial crisis? Peter Day’s In Business programme has been attending a conference of some of the world’s top Nobel Prize winning economists to hear their thoughts about approaches to stimulate innovation and growth and take economics as a discipline into new directions AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, Emerging Economies, Financial Markets, Global Economy, Macroeconomic Policies, Teaching of Economics, 2011-09-04T17:10:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/economic-boom-in-brazil http://www.tutor2u.net/blog/index.php/economics/comments/economic-boom-in-brazil#When:09:30:00Z Brazilians who wanted to get on in life used to leave the country to seek their fortune in the richer developed nations. But now that trend is reversing in a big way - the workers are moving back home, and being followed by a reverse wave of movement of people and capital away from the shrinking economies of the US and Europe to the booming, resource rich economy of Brazil. This article has a number of interesting examples and raises issues such as the extent to which Brazil is likely to over-expand, and so risk a fast upturn followed by equally fast decline through the economic cycle, and the role that their high interest rates will play in avoiding that. It makes an interesting read, and might just encourage a few to learn Portuguese and take the plunge - with the fabulous climate and geography, abundant resources, and the World Cup coming to Brazil in 2014 followed by the Olympics in 2016, why would you not? Emerging Economies, Brazil Economy, Global Economy, International Trade, 2011-09-04T09:30:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/toilet-rolls-soap-and-climate-change http://www.tutor2u.net/blog/index.php/economics/comments/toilet-rolls-soap-and-climate-change#When:09:25:00Z This is a nice short clip explaining some basics of the economics of climate change and the impact that growth in Asia could have.  Source supplied by my favourite economics blog at the moment Economists do it with models.    Could be used to provoke discussion on externalities or impact of growth. Emerging Economies, China Economy, 2011-09-01T09:25:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/do-we-have-to-learn-to-live-with-slums http://www.tutor2u.net/blog/index.php/economics/comments/do-we-have-to-learn-to-live-with-slums#When:09:55:00Z This extraordinary video was filmed in the Philippine shanty towns. The initial feelings of sympathy and even revulsion make way for admiration. Current Economic specifications have squeezed Economic Development as a topic area which is a shame. Future economists will need to deal with the huge disparities between and within countries. There are many economic concepts in this 15 minute video. Emerging Economies, Development Economics, 2011-08-29T09:55:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-rising-weight-of-emerging-economies http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-rising-weight-of-emerging-economies#When:08:19:00Z If you want a short video looking at the rising economic weight and impact of emerging economies there is little better than this 2.30 min video resource published by the Economist AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, Emerging Economies, Global Economy, Teaching of Economics, 2011-08-28T08:19:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-gdp-per-person-since-the-credit-crunch http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-gdp-per-person-since-the-credit-crunch#When:06:46:00Z The Economist has a tremendous charts available here showing what has happened to GDP per person employed since the Global Financial Crisis hit in 2007. The range of outcomes is huge with countries such as China, India, Indonesia and Poland achieving solid gains (indeed Poland was one of the few EU countries to avoid recession) whilst the PIIGS including Greece, Ireland and Italy have suffered badly. The UK is not immune too as the chart makes clear. The chart would make for a terrific discussion among students starting their Unit 4 course and could also be used as a teaching resource for students new to macroeconomics - not least in prompting discussion of the meaning and measurement of GDP and the concept of the economic cycle. AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, Emerging Economies, Cycles and Shocks, Economic Growth, Global Economy, OECD Economies, Teaching of Economics, UK Economy, 2011-08-19T06:46:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-savings-and-banking-to-enhance-development http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-savings-and-banking-to-enhance-development#When:08:40:00Z A hat tip to Patrick North from Crown Woods College for spotting this excellent article on growth and development strategies in Mozambique. The piece focuses on the efforts of Mozambique to increase participation in the banking system to boost savings, investment and ultimately growth and is a good illustration of the Harrod-Domar growth model. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, AS Macro, Emerging Economies, Development Economics, Cycles and Shocks, Aggregate Demand, Saving, Macroeconomic Policies, Supply-side policies, Teaching of Economics, 2011-08-16T08:40:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/guess-where-china-exports-its-chopsticks-from http://www.tutor2u.net/blog/index.php/economics/comments/guess-where-china-exports-its-chopsticks-from#When:22:02:00Z Bizarre example of comparative advantage in action here, where, because of a shortage of the right kind of wood in China, ”Georgia Chopsticks, based in the southern state of Georgia, is operating around the clock to meet the demand and hopes to be exporting 10 million pairs a day by the end of the year, each set complete with a label marked “Made in USA.””. Read more here or watch the video below. HT Carpe Diem. A2 Macro, Emerging Economies, China Economy, International Trade, 2011-08-07T22:02:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/capital-labour-substitution-at-foxconn http://www.tutor2u.net/blog/index.php/economics/comments/capital-labour-substitution-at-foxconn#When:08:19:00Z A hat tip to Pete Davies for spotting this excellent example of capital replacing labour in FoxConn factories in China.  With strong pressure for wages to rise further in Chinese manufacturing, FoxConn justify the decision on the grounds that their workers are better placed being shifted to jobs higher up the value chain. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, Emerging Economies, China Economy, Business Economics, Teaching of Economics, 2011-08-02T08:19:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/development-data-on-google-explorer http://www.tutor2u.net/blog/index.php/economics/comments/development-data-on-google-explorer#When:07:45:00Z Here is a new resource for colleagues teaching aspects of the (newly adjusted) Human Development Index published by the United National Development Project. Vital international development information is now available on Google via its Public Data Explorer - providing access to key data from 21 years worth of research, including the Human Development Index. Here is the link. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 2, A2 Macro, AS Macro, Emerging Economies, Development Economics, Teaching of Economics, 2011-07-30T07:45:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/twitterverse-united-nations-development-programme http://www.tutor2u.net/blog/index.php/economics/comments/twitterverse-united-nations-development-programme#When:12:18:00Z The United Nations Development Programme has a lively twitter feed that links to much of their new research and to other sources of development data.  Here is the link. In recent days there have been lots of useful tweets for teachers and students keen to keep in touch with different aspects of development economics. *Thought provoking: In 50 years, 80% of the world’s elderly will be in low income countries *Eco-Friendly bricks in #Bangladesh help reduce CO2 emissions *How Indian tea is helping spur #development *Over the next 20 years, the global demand for #water will be 40% more than today’s supply *% of people living in extreme poverty in developing nations dropped from 46% to 27% between 1990 and 2005 A highly recommended twitter feed for interested colleagues AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, AS Macro, Emerging Economies, Development Economics, Environmental Economics, Teaching of Economics, Digital Learning, 2011-07-18T12:18:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/beyond-the-bike-stuarts-epic-economic-cycle http://www.tutor2u.net/blog/index.php/economics/comments/beyond-the-bike-stuarts-epic-economic-cycle#When:09:17:00Z Stuart Block, an economics teacher at Cranleigh School and tutor2u presenter/blogger is just days away from a cycle of a lifetime. He is making final preparations to cycle from Cape Town to London over the course of the next year. It will be a fantastic journey and at tutor2u we’re excited to be partnering Stuart and his team as they write about their experiences on the road and with many different communities. Here are some important links to follow: Beyond the Bike - the main web page for Stuart’s expedition including links to fund-raising projects The Economic Cycle -  this is a blog that will be aimed at A-level & undergraduate students and teachers and aims to explore some of the fundamental economics principles that underlie the everyday actions of societies that Stuart will be passing through, ranging from the most basic Africa market operating outside of the formal economy to high level international policymaking. An ongoing theme will be exploring the role that education plays in economic development. Look out for an RES essay competition title on this crucial issue when the essay titles are released later on in the autumn. Watch out for the main weekly blog which will be sent out to colleagues via our regular teacher newsletter. Fans of Twitter might like to follow Stuart here. And there is also an open group on Facebook - click here The whole of the tutor2u team send their very best wishes to Stuart as he embarks on his journey! Beyond the Bike - the Economic Cycle, AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, Emerging Economies, Development Economics, Global Economy, Teaching of Economics, 2011-07-17T09:17:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-economics-of-volatile-corn-prices http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-economics-of-volatile-corn-prices#When:08:52:01Z Corn is a soft commodity along with the likes of coffee, tea and rubber. Referred to as “yellow gold”, corn is used in products ranging from cereals, snack foods, salad dressings, soft drink sweeteners, chewing gum and peanut butter. Little wonder that shifts in the world price of corn can have a noticeable effect on the prices that we may for many popular foods and drinks. The world’s appetite for corn is strong. In recent months there has been a surge in the global price of corn, indeed at the end of June 2011, corn prices were up 74 per cent on a year earlier. Super-high prices affect the price of feed for livestock farmers and eventually lead to more expensive foodstuffs for consumers, including millions of people in the world’s poorest countries exposed to persistent and life-shortening food poverty. Robert Zoellick, President of the World Bank has said that high and volatile food prices are “the single gravest threat” facing developing countries at the current time. AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Agriculture, Emerging Economies, China Economy, Government Intervention, Buffer Stocks, Market Equilibrium and Price, Nature of Demand, Nature of Supply, Price Mechanism in Action, Price Volatility, 2011-07-12T08:52:01+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/global-economy-increased-risk-of-future-shocks http://www.tutor2u.net/blog/index.php/economics/comments/global-economy-increased-risk-of-future-shocks#When:07:05:00Z A new OECD report on the risks of external shocks to the global economy looks like being really useful for teachers preparing fresh materials for their courses. “The interconnectedness of the global economy makes it more vulnerable to major shocks…...these shocks include cyber attacks, pandemics, geomagnetic storms, social unrest and financial crises.” The report can be downloaded here. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, AS Macro, Emerging Economies, Business Economics, Management Issues, Cycles and Shocks, Aggregate Demand, Aggregate Supply, Environmental Economics, European Economy, Global Economy, Credit Crunch, Government Intervention, Macroeconomic Policies, OECD Economies, Teaching of Economics, UK Economy, 2011-06-28T07:05:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/china-the-end-of-cheap-labour http://www.tutor2u.net/blog/index.php/economics/comments/china-the-end-of-cheap-labour#When:06:29:00Z China’s unit labour cost advantage in high-volume manufacturing is being eroded at a faster rate according to this feature piece from Time Magazine. “The average manufacturing wage in China is still only about $3.10 an hour, (compared with $22.30 in the U.S.), though in the eastern part of the country, it’s up to 50% more than that.”  There are strong economic, social and political pressures for wages to rise and as they do this will have hugely significant demand and supply-side effects on their economy, for example accelerating the pressure for China to invest more in new technologies and product and process innovation to move higher up the value chain and become less dependent on supplying cheaper products to the rest of the world. My recent China Economics Revision Note focuses on some of these issues. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, AS Macro, Emerging Economies, China Economy, Economic Growth, Global Economy, Labour Market, Standard of Living, Teaching of Economics, 2011-06-28T06:29:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/development-economics-emerging-africa http://www.tutor2u.net/blog/index.php/economics/comments/development-economics-emerging-africa#When:06:22:00Z Emerging Africa: This new briefing document from the Center for Global Development looks at how 17 African economies are leading the way towards stronger and more durable development. A hat tip to John Wilson from New Zealand for flagging up the resource via his Twitter account. John can be found here: @mixedeconomies AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, Emerging Economies, Development Economics, Economic Growth, Global Economy, Teaching of Economics, 2011-06-28T06:22:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/as-micro-fears-over-a-century-of-hunger http://www.tutor2u.net/blog/index.php/economics/comments/as-micro-fears-over-a-century-of-hunger#When:08:19:00Z Nigel Cassidy reports in this video from BBC news on fears that the world faces “a century of hunger” if the international community cannot agree on new rules regarding food prices. Food security is a hugely important global economic, political and social issue and one of the best resources for keeping up to speed on this is the Guardian’s dedicated page of articles. Here is the link. Check the links at the bottom of the blog for past articles on this topic. AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 4, EdExcel Economics Unit 1, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, AS Micro, Agriculture, Emerging Economies, Development Economics, Commodities Markets, Cycles and Shocks, Economic Growth, European Economy, EU Farming and Fishing, Global Economy, Government Intervention, Buffer Stocks, International Trade, Poverty and Inequality, Market Equilibrium and Price, Price Mechanism in Action, Price Volatility, Standard of Living, Teaching of Economics, 2011-06-22T08:19:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/uk-firms-wake-up-to-brazilian-opportunities http://www.tutor2u.net/blog/index.php/economics/comments/uk-firms-wake-up-to-brazilian-opportunities#When:05:34:01Z As Nick Clegg makes his delayed visit to Brazil this week, with the aim of doubling UK exports to this fast-growing economy, the UK’s former Consul-General in Sao Paolo has written an interesting piece for the BBC’s website. As Martin Raven points out, British business has taken a long time to take Brazil seriously, and this high-level visit replaces one that was due to take place in February but cancelled at less than a week’s notice because of the debate in the House of Commons over the AV referendum - which can hardly have helped. As a result, he says, the UK has fallen behind other countries investment into the Brazilian economy and “there are now more international German companies in Sao Paulo alone than in any individual city in Germany.” Emerging Economies, Brazil Economy, Global Economy, International Trade, UK Economy, 2011-06-22T05:34:01+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/oceans-at-grave-risk http://www.tutor2u.net/blog/index.php/economics/comments/oceans-at-grave-risk#When:19:28:00Z The tragedy of the commons and the grave consequences for the state of marine ecology are highlighted in this new report. Covered with passion in this blog. Climate change, pollution and over-fishing are two fundamental problems for the oceans. More details here from the International Programme on the State of the Ocean (IPSO) website. The report identifies a number of important policy approaches to tackle the problems - The scientists say that the ‘precautionary principle’ must be used in terms of oceanic impacts, in other society shouldn’t don’t proceed with activities unless they are proven to be largely safe for marine ecosystems.  And they argue for much stringer use of property rights by widening the size of international marines of the sea. TED Talk: Jeremy Jackson: How we wrecked the ocean   AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 3, EdExcel Economics Unit 1, EdExcel Economics Unit 4, A2 Micro, AS Micro, Emerging Economies, Cost Benefit Analysis, Environmental Economics, European Economy, EU Farming and Fishing, Global Economy, Government Intervention, Market Failure, Teaching of Economics, 2011-06-20T19:28:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/econ4-context http://www.tutor2u.net/blog/index.php/economics/comments/econ4-context#When:19:13:00Z Geoff’s blog about ECON4 (see below) is fantastic advice, and I hope that my A2 students will spend much of the next 2 days working their way through it, checking they are secure in their knowledge of the topics he has identified, and can apply them to the context areas suggested there. If they have finished all that, and want yet more up-to-date evidence there is plenty in the news in the last few days. AS and A2 Specifications, AQA Economics Unit 4, A2 Macro, Emerging Economies, China Economy, Commodities Markets, Cycles and Shocks, European Economy, International Trade, Macroeconomic Policies, OECD Economies, Standard of Living, UK Economy, 2011-06-20T19:13:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/six-global-trends-shaping-business-strategy http://www.tutor2u.net/blog/index.php/economics/comments/six-global-trends-shaping-business-strategy#When:14:50:00Z This is a cross posting from the Business Studies blog because it strikes me as being SO useful for A2 students in particular as they look to include synoptic arguments and ideas into the evaluation this June. This new report by consultants Ernst & Young is a pinch of gold dust for such students, as it examines in a reasonably accessible way six broad, long-term developments which shape business around the globe. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, A2 Micro, Emerging Economies, Development Economics, Business Economics, Management Issues, Cycles and Shocks, Economic Growth, Global Economy, Teaching of Economics, 2011-06-15T14:50:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/do-you-agree-that-the-government-should-provide-support-to-the-uk-car-indus http://www.tutor2u.net/blog/index.php/economics/comments/do-you-agree-that-the-government-should-provide-support-to-the-uk-car-indus#When:09:25:00Z This is a fairly classic A2 macroeconomics question, and one that the European Automobile Manufacturers Association has been considering at their meeting in London last week. Their conclusion? That non-European governments should scale back assistance for their own automotive industries, but at the same time governments in Europe should support the industry’s efforts to cut car emissions. A2 Macro, Emerging Economies, Business Economics, Competitive Markets, European Economy, Government Intervention, Subsidies, Macroeconomic Policies, Supply-side policies, Manufacturing Industry, 2011-06-12T09:25:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/chinese-inward-investment-in-the-london-property-market http://www.tutor2u.net/blog/index.php/economics/comments/chinese-inward-investment-in-the-london-property-market#When:08:40:01Z In mainland China, authorities have put restrictions on property speculators to dampen the market, while in Hong Kong prices have risen by 70% in less than two years. But the 25% depreciation of sterling over the last two years makes the London property market a real draw for property investors from China. Sky News reports that one in three of buyers of new properties in London come from China and Hong Kong, mainly in the £400,000 - £1mn bracket, either seeking accommodation for their children studying in London or simply an investment. If - or when - the sterling/dollar exchange rate recovers, their return will be enhanced by the increased return they could get when they take their money out of the UK market again. A2 Macro, AS Macro, Emerging Economies, China Economy, Exchange Rates, Housing Economics, Poverty and Inequality, Market Equilibrium and Price, Price Mechanism in Action, Teaching of Economics, UK Economy, Regional Economics, London Economy, 2011-06-12T08:40:01+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/development-econ-wealth-and-inequality-in-china http://www.tutor2u.net/blog/index.php/economics/comments/development-econ-wealth-and-inequality-in-china#When:07:16:00Z The BBC is running a special series of short reports on the chasm in wealth inequality in fast-growing China. One in a Billion looks at China’s new super rich. This set of video reports on Chinese development from Carrie Gracie (Nov 2010) is also worth looking at A portrait in miniature of China’s transformation AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, AS Macro, Emerging Economies, China Economy, Economic Growth, Poverty and Inequality, Teaching of Economics, 2011-06-10T07:16:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/global-aging-new-imf-video http://www.tutor2u.net/blog/index.php/economics/comments/global-aging-new-imf-video#When:07:11:00Z A new IMF Finance and Development video on some of the statistics behind global aging is now available. Just click on the link below. The world’s population is getting older. Countries need to think about how fewer young people can continue to support the elderly.   AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, Emerging Economies, Development Economics, Demography, Labour Market, Teaching of Economics, 2011-06-10T07:11:00+00:00