Flashcards
Globalisation Chapter 1 3A
Cards in this deck (7)
- 1What improves Australia's international competitiveness- Improved multi factor productivity
( A rise in multi-factor productivity makes production move efficient and increases competitiveness) - 2Which factor has NOT encouraged globalization- higher world oil prices
( Higher oil price would increase transport cost, which in turn would reduce the benefits trade) - 3Globalization has- enabled Australian firms to gain access to larger markets
( Trade reforms allows firms access to export markets. Tariff revenue falls. There may be structural unemployment, but there is no reason to think cyclical unemployment will rise. Foreign investment are a feature of globalization. - 4Argument against globalizationGlobalization involves trade liberalization and foreign investment. This leads to structural change as economies specialize in areas of comparative advantage.
- 5Factors that have contributed to Australia for being a major exporter to ChinaUrbanization and industrialization in China has increased the demand for mineral and energy commodities. Australia is a resource rich country and has a comparative advantage in producing these products.
- 6Advantages to Australia of the increased linkages among the countries in the Asia-Pacific region in recent decadesLinkages between countries in the Asia-Pacific region includes (FFCMC) Flow of trades, foreign investment, currency convertible, migration and cultural.
Australia gets static gain from trade through a better allocation of resources. For example, consumers can buy products at a cheaper price and producers have access to a bigger markets. Australia also get dynamic gain from trade, such as efficiency improvements due to economies of scale and increased competition
Australia benefits from inflows of foreign investment because, for example, foreign investment closes the saving-investment gap, creates knowledge transfer and introduces different working practices. - 7Ways in which the Australian economy is linked to the economies of Asia.1. Involves in trade of goods. Australia export commodities such as iron and coal and imports manufactured goods such as cars, electrical goods and toys.
2. Involves trade in services. Examples includes tourism, education and financial services.
3. Direct foreign investment. For example, China has undertaken foreign direct investment in a number of mines to develop secure supplies for its industry.
4. Involves currency movements. Currencies are convertible and speculative movements in currencies alter. For example, value of the AUD against Japanese and Chinese currencies.
5. Involves movement of people, either for long term migration or for short term work contracts.
6. Involves the transfer or blending of ideas, information and culture, for examples as a result of travel or through communication
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- WACE (Western Australian Certificate of Education) Econs Flashcards on Globalisation Chapter 1 3A, created by Sue Kyi on 13/09/2015.
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- Sue Kyi
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