Australias Internation Trade Flashcards
(14 cards)
1
Q
What are Australia’s linkages between economies
A
- trade
- investment
- tourism
- immigration
2
Q
Describe trade as a linkage
A
- drives economic growth, creates wealth and improves living standards
- Aus: 18 FTA to boost regional trade
eg. APEC, ChAFTA - X = 25% of aus GDP
- 1/4 aus work in trade related industries
3
Q
What are the benefits of trade
A
- allows countries to obtain goods and service that they cannot produce/sufficient production
- allows specialisation –> economies of scale through lower costs, increase output and em
4
Q
A
- 2024: foreign –> AUS = $235bn
- 2024: aus –> foreign =$142bn
5
Q
whats the difference between FDI and portfolio Investment
A
- FDI: ownership rights of over 10%
- portfolio: ownership rights of less than 10%
6
Q
what are the different forms of FDI
A
- buying shares
- purchasing property
- setting up subsidarys
- reinvestment earnings
7
Q
What forms do portfolio investment usually take
A
- loans
- bonds
- shares
8
Q
What are MNCs
A
- companies with branches in mutiple countrie, but head quaters in one host country
eg. walmart, shell, Exxonmobile, BP, Toyota
9
Q
What is the role of MNCs
A
- manage production across countries, forming global supply chains
10
Q
Why does AUS have high foreign investment flows
A
- due to inadequate domestic saving needing foreign capital to support capital growth
eg. EU, N America, Japan invest into other countries
11
Q
What are the benefits of Investment
A
- boosts em and tech innovation
- provides taxation rev to the government
12
Q
How is tourism a linkage
A
- largest import (aus leaving) and sixth largest export (people coming into aus)
- 2024: more Aus travelled overseas than overseas travelled into Aus
13
Q
what are the benefits of tourism
A
- economic growth: tourism spending helps economy
- job creation: tourism provides many jobs for Aus
- cultural exchange: visitors bring culture
- infrastructure development: encourages improvement in facilities and services
14
Q
tbc (imigration)
A
