Quiz Flashcards
(26 cards)
How has the labour market changed?
Labour is available everywhere. People can go to a cheaper provider, labour intensive product is then moved to developed countries or countries with lots of people.
Outline 2 roles the government plays in globalisation for Australia
- Promoting Australian industry and business overseas through financial and logistical support (Austrade)
- Regulating unethical behaviour
Who are Australia’s major trading partners? (What direction is our trade)
China, Japan, South Korea, USA, Singapore, India, Thailand, UK, NZ.
Most in SE Asia
Name the top 5 imports for Australia
- Personal travel
- Crude petroleum
- Cars
- Refined petroleum
- Freight services
Name the top 5 exports for Australia
- Iron ore
- Coal
- Gold
- Education
- Natural gas
Outline 3 key points about changes in trade since WW2
- Countries moved to protect themselves with trade barriers
- Trade is more regionalised - we trade more with Asia
- Trade is more broken down - a product has a web of production in most parts of the world
3 external factors that have driven globalisation and why
- Technology
- Communication
- Deregulation of financial markets
Why: global consumers
Online 6 internal reasons a business may globalise
- To find new markets
- To diversify
- Economies of scale
- Laws and regulations
- Aquire resources
- Minimise risk
Who is Austrade and what is their role?
The federal governments department on trade. They help our businesses trading overseas and negotiate free trade agreements.
4 ways for a business to globalise
- Export
- FDI
- Relocate production
- Franchises/licenses
2 examples of businesses that have globalised and the category type
- Rip curl - licence
- Cotton on - franchise
- Bonds - relocate production
Advantages of choosing to globalise via licences/franchises
Give an example.
You don’t have the cost of setting up.
Franchisee has the knowledge and responsibility to make it work.
Example: cotton on did this all over the world.
Advantages for choosing to globalise via FDI.
Give 1 example
You can produce in a country that is avoiding import duties. You earn all the profit and have control.
Westfield
Advantages of choosing to globalise via joint venture
Give 1 example
You can use the local knowledge and connections and it takes less money to set up.
Many of the mining ventures
Advantages of choosing to globalise via exporting
You have higher control over your product as it is made at home under Australian laws. The cost to sell in another country is cheap. You may only have that product in Australia (no competition).
Selling wine throughout Asia
Name 3 trade barriers
- tariff
- subsidy
- quotas
3 benefits of globalisation to consumers
- Increased standard of living
- Choice
- Developments in technology
What is FTA
Free trade agreement
Name a FTA
Australia New Zealand
Australia United States
Singapore Australia
3 challenges of globalising
- Economic
- Social
- Political
Why are we more vulnerable since globalisation?
If the economy falters then all businesses fall as they are all interconnected.
What does deregulation of the financial market refer to?
Interest rates and exchange rate:
Changing currency and sourcing credit through loans is much easier
How does deregulation increase economic growth?
To expand a business you need money. To be able to access money through loans more easily makes growth increase.
Define tariff
The tax to be paid from importing or exporting.
