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Flashcards in Globalisation Deck (29)
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1

Globalisation

Opening of international boarders to the flow of trade, investment, immigration, information and technology

2

What caused globalisation to rise?

WTO, internet, fall of communism

3

WTO

World Trade Organisation

4

International competitiveness

The degree to which a country can produce goods and services which meet the test of international markets, while simultaneously maintaining and expanding the real incomes of its people over the long term

5

Real unit labour costs

Changes in wages relative to productivity

6

Productivity

How much output can be produced from a given amount of input, total production (GDP)/hours worked

7

When do real unit labour costs fall?

Productivity rises, wage costs fall

8

TWI

Trade weighted index measures change in value of currency relative to major trading partners

9

What major event led us to realise the importance of globalisation?

GFC 2008

10

What does globalisation imply?

Opening up international borders to flow of workers, trade, tourism and investment

11

What is globalisation to economists?

Triumph of free trade and competitive markets over protection and restricted markets

12

What has WTO declared the most significant economic event of our time?

Rise of developing world, giving them new access to markets/technology/investment

13

4 trends affecting relationship between trade and development

Economic growth of many developing countries
Growing integration of global production through supply chains
Higher prices for agricultural goods and natural resources
Increased interdependence of the world economy

14

What is globalisation blamed for?

Poverty, inequality, environmental pollution

15

How much of Australia's GDP is exports?

~20%

16

What does Australia import a lot?

Capital goods, machinery, motor vehicles, consumer goods

17

What are the top 4 ranked global exports?

Fuel


18

MNC

Multinational corporations

19

How are real unit labour costs measured?

GDP/hours worked

20

PPP

Purchasing power parity theory, identical goods should cost the same in different countries

21

How much of world exports is tourism?

30%

22

Why does Australia heavily rely on foreign investment?

To complement our low domestic savings

23

NAFTA

North American Free Trade Agreement

24

ASEAN

Association of South East Asian Nations

25

Intermediate goods

Goods within the supply chain

26

Trade blocs

Nations that trade together

27

Absolute advantage

producing more of a good and at a greater efficiency than competing nations, complete control over product and other nations shouldn't bother competing

28

What does Australia export?

Natural gas, bauxite, iron ore, coal

29

WTO aims

Liberalising international trade