Globalisation

Question 1

International competitiveness

Answer 1

The degree at which a country can produce goods and services at competitive prices to other countries.

Question 2

Linkages between economies ➡️ trade

Answer 2

Buying and selling between two countries, efficiently without trade barriers (exports and imports)
Australia imports manufactured goods, intermediate goods (china, Japan)
Australia exports iron ore, coal, natural gas etc

Question 3

Linkages between economies ➡️ investment

Answer 3

Investment fund assets -> 3rd largest in the world
Relied on foreign investment to help supplement its domestic savings to help fund its economic development
Net inflows of foreign investment in Australia were valued at 75.6 billion in 2015, net outflows were valued at 5.1 billion

Question 4

Linkages between economies ➡️ tourism

Answer 4

Has grown due to improvements in transport and communication (ranking 4th in global exports)
Tourism accounts for 30% of the world’s exports of commercial services
Tourism has also become an important industry in Australia
International tourism -> 11th largest in the world

Question 5

Linkages between economies ➡️ immigration

Answer 5

Multicultural nation
Immigration has been an important source of skilled labour, boosting Australia’s population growth
28% of Australia’s population were born overseas
We’ve become a more integrated economy due to these improvements in communications and technology
Foreign students - 3rd largest in the world

Question 6

Discuss the economic effects of globalisation

Answer 6

Controversial issue
Against: making the rich richer, and the poor poorer
For: allows countries to specialise in particular goods for trading

FOR: 
Increase economic growth 
Reduce global poverty 
Increases multiculturalism 
Lowers prices 
Increase living standards

AGAINST:
Worsens poverty 
Erodes democracy 
Increases environmental damage 
Unfair to developing countries