1
Q
What is the meaning of globalisation?
A
the freer movement of g & s, investment, ideas and people around the world. It implies the opening up of international borders to the flow of trade, workers, tourists and investment
2
Q
What are the trend affecting the relationship between trade and development?
A
- economic growth of many developed countries
- growing intergration of global production through supply chains
- higher prices for agricultural goods and natural resources
- increasing interdependence of the world economy, which causes shocks to reverberate more quickly and globally
3
Q
What are the main exports and imports in Australia?
A
exports
- resources i.e. iron ore, coal, natural gas, gold and bauxite
imports
- capital goods
- machinery
- motor vehicles
- consumer goods
4
Q
What are the factors affecting economic transactions between different economies?
A
- exchange rate
- world economic growth
- domestic economic growth
- relative inflation rises
- relative interest rises
- productivity and cost efficiency
5
Q
What are the key drivers of competitiveness?
A
- economic performance - domestic economy, international trade, inflation and unemployment
- government efficiency - public finance, fiscal policy, business legislation, insitutional framework
- business efficiency - productivity, labour market, finance management practices
- infrastructure - basic infrastructure, technological infrastructure, health, education
6
Q
What are the indicators of how goods, capital and peopl become more globalised?
A
- value of exports as a % of world GDP increased from 19& (in 1980) to 30% (in 2013)
- since 1980, inflows of foreign direct investment have increased by a factor of thirty
- the number of international tourist arrivals have quadrupled from 1980 to 2013
7
Q
What are the key determinants of competiveness?
A
- changes in labour productivity due to factors such as technology, education and training
- changes in a country’s price level (inflation) relative to its trading partners
- changes in a country’s wages relative to its trading partners
- changes in the exchange rate
8
Q
What are the causes of globalisation?
A
- the liberalisation of markets to the flow of g & s and investment
- technology
- multinational corporations
9
Q
What are the arguments against globalisation?
A
- it favours the richer, developed nations - global poverty has not been reduced and income inequality has increased
- free trade resultd in job losses in less competitive economies as by erecting barriers to trade such as tariffs, local jobs can be oritected against unfair competition
- it is unfair to developing countries and volatile capital flows have destabilised developing countries
- increases environmental damage
- erodes democracy
- lowers wages and entrenches th euse of child labour
- worsens poverty
10
Q
What are the arguments for globalisation?
A
- provides access to a wider variety of g & s
- lowers prices and provides more and better oaying jobs
- reduces global poverty
- increases economic growth and overall living standards
- it has enabled developing economies to access foreign investment
- increases multiculturalism
