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Flashcards in Trade/BoP Deck (62)
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1

How many jobs in Australia are export related?

2

What is the Australian economy ranked?

12th largest

3

What does Australia specialise in?

Primary goods/natural resources (agriculture/minerals: coal, iron ore,natural gas)

4

Why did specialisation develop?

Different natural resource endowments around the world

5

Why does Australia specialise in what it does?

Vast mineral deposits/energy resources, large areas of arable land for crops/livestock

6

Endowment of natural resources

The resources possessed by a region

7

When will a country export or import?

Import if world price is cheaper than domestic, export if domestic price is cheaper than world.

8

Are imports or exports more important?

Neither; equal importance

9

Why is trade worth it if one group loses?

Gains exceed the losses

10

Why do imports increase economic welfare?

Consumer gain outweighs producer loss, overall welfare increases

11

How can countries consume outside their PPF?

Specialisation and trade

12

What are Australia's 3 largest trading partners?

USA, Japan, China

13

Australia's largest export partners

Japan, China, Korea

14

Australia's largest import partners

China, US, Japan

15

How much of 2-way trade do the 3 largest trade partners account for?

43%

16

How much of exports do the 5 largest partners account for?

62%

17

What factors affect trading partners?

Geography, political/historical links,

18

What is Australia's 4th largest export?

Education

19

Largest imports

Personal travel, petroleum, passenger vehicles

20

What does trade do to an economy?

Boost economic development/growth, raise living standards

21

Trade surplus

Exports exceed imports

22

Trade deficit

Imports exceed exports, negative net exports

23

In the past 10 years, how many recorded a trade surplus?

2

24

Which side do exports benefit?

Production

25

Which side do imports benefit?

Consumption

26

Balance of goods

Record of all transactions between Australia and the world

27

Which parts of the balance of payments must be equal?

Credit & debit, current & capital/financial

28

What do exports depend on?

Relative competitiveness, conditions in other countries

29

Exchange rates

Price of one currency in terms of another

30

How is the value of a currency determined?

Demand/supply