Trade Flashcards
(21 cards)
Who are Australia’s 3 major trading partners?
China, Japan and USA
What countries are Australia already in FTAs with?
NZ, Singapore, Thailand, USA, Chile, Malaysia
Is Australia in a Free Trade Agreement with China yet?
No. Négociations are still in place
Define ‘bilateral’
two countries in a FTA
Define ‘multilateral’
more than two countries in a FTA
What are Australia’s biggest imports?
technology, clothes etc. (manufactured)
What are Australia’s biggest exports
minerals/fuels, agriculture, education
Define ‘import’
products of a foreign country brought into another country
Define ‘export’
products produced in the country sold to other foreign countries
Define ‘trade weighted index’
measuring AUD against currency of our trading partners
Define ‘exchange rates’
value of one currency against another or a number of other currencies
Define ‘protectionism’
By which trade in countries is restricted in some way (to reduce no. of imports)
Define ‘tariffs’
A tax increasing the price of a good coming into a country - making it more expensive to buy
Define ‘embargo’
A total ban on a specific good coming into a country
Define ‘subsidies’
Government paying an amount of money to a local firm to help funding
Define ‘quota’
restriction on the number of goods coming into a country
Explain ‘trade liberalisation’
It aims to free up world trade and break down the barriers of international trade. Basic philosophy rests on the principle of comparative advantage
Define ‘comparative advantage’
Where one country specialises in a certain type of resource e.g. China good with labour, Aus good with natural/finite resources
Positives of trade liberalisation
promotes international specialisation, increases world output, promotes efficient use/allocation of world resources etc.
How does trade liberalisation help developing countries?
Allows them access to the heavily protected markets of the developed world thus helping promote development
Reasons for anti-globalisation protests
many people believe it will widen poor/rich gap, increase in production will see issue of environment disregarded, loss of culture due to imports
