Macroeconomic Theory

Macroeconomic Vs Microeconomics
Distinction between microeconomics and macroeconomics

Macroeconomics
Macroeconomics is the study of the nations economy as a whole. Macroeconomic analysis can be used to: Understand how a national economy works. Understand the grand debates over economic policy. Information helps on business decisions.

Macroeconomic Objectives
The major macroeconomic issues
economic growth
unemployment

inflation
balance of payments & trade and exchange rates
balance of payments and Treade deficits and surpluses exchange rate movements

The major macroeconomic instruments & tools

Fiscal policy ( government expenditure, taxes, subsidies,)
Monetary Policy ( money supply (m4), interest rate,..) International Trade ( policies, protection, free trade,.controlling exchange rate, ) Income policies ( incomes and prices)

General Agreement on Tariffs and Trade GATT

Globalization and world trade

What is free trade? Globalization

The flow of goods and services between countries without restrictions or special taxes

GATT Agreement Agreement on Agriculture AOA

Deals with 4 axis to increase competition and reduce distortions in agricultural product markets.

Agreement on Agriculture AOA 1- Market Access

The ability of countries to penetrate into markets (no tariffs, no barriers). Replacing non-tariff barriers by tariff barriers and reducing tariff barriers to zero.

Domestic Support
Elimination of domestic support especially programs aiming towards increasing farmer incomes. Support that poses harm to trade (Yellow box) Commodities undergoing reduction until total elimination. Support that poses no harm to trade (Green box) Commodities not undergoing reduction.

Export Subsidy
Elimination of export subsidy (increasing export competitiveness in international markets artificially).

Sanitary and Phytosanitary Measures (SPS)

The agreement identifies all sanitary measures that facilitate the flow of trade between nations, such as: HACCP, ISO 9001, EurepGap, ISO 22000

Traceability
Trace- back or Tracking

Trace- forward or Tracking

GLOBALG.A.P VERSUS EUREPGAP