aos3 dot point 1.

Question 1

Australian exports

Answer 1

Australian-made G&S that are purchased by foreign households, businesses, governments and other groups

Question 2

Australian imports

Answer 2

Foreign-produced G&S that are purchased by Australian households, businesses, governments and other groups

Question 3

benefits of international trade

Answer 3

-lower prices (from increased competition, driving efficiency as firms want to improve productivity to lower cost)
-greater choice (imported goods such as technology leading to a greater satisfaction of wants than would otherwise be the case.)
-access to resources (trade gives access to land labour and capital resources we normally couldn’t get)
-improves quality of life for aus by importing goods (holidays, films)
-production of exports creates jobs, generating income/economic activity.

Question 4

BENEFIT- economies of scale

Answer 4

• by opening boarders to trade, austrlian businesses can sell to a much larger market place.
  -this allows them to spread there fixed costs across a greater volume of sales, reducing cost per unit. (allows producers to lower price)
• a proportion of saving in costs gained from increased level of production

Question 5

Outline the main reasons why world trade has grown so quickly over the last 50 years or so.

Answer 5

a greater recognition of the benefits of international trade. government has cut tariffs. cutting tariffs makes foreign goods cheaper,

Question 6

trumps tarriffs

Answer 6

tarriffs are a form of protection to protect domestic economies.
trump tariffs make aus imports to ausa market more expensive
eg steel entering USA has a 25% tariff making aus steel very expensive to USA companies
aus experience decrease demand from us markets
however an uptake from other countries as they enter trade wars with the us potentially benefitting aus
for example china has uppted their imports for aus beef and stopped importing it from the us