aos 3 Flashcards

Question

factors accelerating globalisation relaxation of government controls and adopt freer trade

Answer 1

World Trade Organization promoting eco benefits of freer trade -> govt reduce protection of local industry by: cut tariffs on imports abolish quotas or quantity controls on particular types of imports lower payment of subsidies to local firms

Answer 2

e.g containers that can be stacked -> efficiency transport costs re buy + sell goods = less important as proportion of final selling price faster transport + lower costs -> bus = more aware of profit opp to move resources + prodn b/w countries -> nation specialise in prodn, encouraging expansion of global bus + international trade

Answer 3

N+L resources = hard to move b/w countries but money capital + invest resources = not move investments in + out of countries -> flexibility on decision making for bus -> change + restructure operations as conditions change in countries

Answer 4

nultinationals can manufacture goods even in low income countries where edu = low new tech allow electronic banking + invest -> encourage international trade + global financial transactions evolution of fast + affordable internet -> advertise + c'er can shop online

Answer 5

encourages countries to specialise in particular areas of production where they have a comparative cost advantage over other countries-> improves efficiency in the way nations use their limited resources -> lowers the unit cost and price of goods and services and expands the volume of world trade between countries -> raises GDP levels for those involved, increases employment opportunities, lifts real incomes and purchasing power, and ultimately strengthens material living standards.

Answer 6

When a business produces, it can experience cheaper production costs per unit of its output, the higher the volume of output it produces. This is called achieving economies of scale.

Answer 7

asia = worlds largest p'er of goods Integration into the global economy: Asia = high lvls relatively unskilled, cheap labour for multinational companies prepared to relocate to those countries The influx of people into Asian cities has caused a massive increase in demand for infrastructure and housing, and consequently building materials and energy.

Answer 8

operate in more than one country but are based in one country -> take advantage of many opportunities offered by the factors that also contributes to increased globalisation. MNCs have taken advantage of: Economies of scale Advances in technology Differences in wages Government regulations

Answer 9

aust c'ers = buy quality g+s @ less $. p.p of h.h incomes rise -> higher material L.S measures to keep price low: > tariff cuts -> comp > labour market reforms (use enterprise bargaining + performance based pay) > privatisation of govt businesses > stronger comp policy inv ACCC > deregulation of capital market > tax reforms (lower taxes)

Answer 10

globalisation -> ↑ c'er choice b/c h.h + bus = purchase what like in market around world. surge of e-commerce -> easy

Answer 11

global communications -> ↑ ethical aware when choosing g+s. concept of free trade = imp

Answer 12

changes to wage system: >spread of enterprise bargaining + productivity-based agreements negotiated on ↑ flexible firm-by-firm basis -> now cover 85% of all emp >simplification + scale back of agree covered under old centralised, complex + inflexible minimum wage system > promotion of union amalgamation + erosion of union influence in wage negotiations > some relaxation of the unfair dismissal laws so firms get rid of unproductive + unnecessary workers

Answer 13

partial deregulation of aust labour market, which followed trade liberalisation + increased global comp, was intended to closely link wage rises to productivity/worker efficiency

Answer 14

1. better efficiency. openness b/c tariffs + less protection -> force allocation of resources efficiently 2. cost cutting 3. lower prodn costs 4, expansion of export market -> grow faster b/c x tariffs 5. more foreign investment

Answer 15

aust grow prodn faster that pop ↑ p.p b/c higher income + lower prices -> L.S rise quickly

Answer 16

pressured govt to implement ↑ AS, efficiency-promoting policies: > reduce company rate tax > build efficient national infrastructure > promote comp via strengthen competition + c'er act -> price surveil + x anti-comp behaviour

Answer 17

loss of jobs natural disadvantage b/c geo location -> add cost to products exported aust has poor economies of scale b/c small domestic eco -> unable to reduce average costs to level of other major eco emerging comp -> restructure w/ small lay offs + major redundancies

Answer 18

company using external organisation to provide services/undertake some operations of company -> lose jobs cheaper labour -> reduce labour cost / reduce regulations/ proximity = closer to resources + cust/ access higher level of skill + expertise

Answer 19

deregulation of financial market exposed aust financial sector to int comp -> need to respond effectively to global pressures domestic and foreign banks compete -> excess credit deregulation -> large floes of capital into + out of aust

Answer 20

national defence -> future resource + national security in int conflict may be compromised possible loss of govt tax revenue -> companies shift profits to lower tax subsidiaries in low tax countries -> deprive aust govt from tax needed to pay for comm services housing affordability -> massive purchases of property by foreign buyers -> expensive for young families - finding home ownership unaffordable

Answer 21

GHG emissions increased by 70% b/c transport increased agriculture prodn -> use chemical fertilisers + pesticides that poison soil + blue-green algae use irrigation to increase crop + meat prodn for export -> soil salinity increased water use for growing agricultural exports -> export water from driest continent -> water restrictions

Answer 22

multinational corps becoming better global citizens b/c: >fear of poor rep -> c'er boycotts + decrease sales + profit > bad publicity in media > backlash by shareholders = reflected in fall in company share price > fear govt will pass strict legislation -> limit operations > prosecution under environmental laws > desire + need for firms to retain competent + ethical staff

Answer 23

MNCs provide better pay -> impact competitors b/c take talent from domestic bus -> strain b/c x have best talent 40% higher pay -> employees benefit extra pay minimise turnover -> ↓ cost for monitor work -> ↑ income + living standards

Answer 24

after tax profit returned to country of origin -> x local govt get benefit -> x develop + outflow of income POSSIBLE exploitation of workers inc child labour

Answer 25

large corp = accused of spreading homogenous products + culture arnd wrld replace local culture b/c spread western values put diversity of other producers at risk by mass generating homogenous product

Answer 26

some MNC embraced fair trade movement MNC provide better price for local farmer (supplier) -> products @ better value Fair Trade -> fair price for g+s -> p'ers remunerated fairly

Answer 27

Fair trade become more popular + c'er want products enviro ethical MNC's consistent emphasis on CSR

Answer 28

↑ transportation of products -> pollution 13% of wrld carbon emissions = transport MNC encourage culture of excessive/unnecessary consumption -> deplete natural resources/deforestation/damage to biodiversity

Answer 29

MNC empoly most skilled -> pay emp more than local -> widen gap b/w low + high skilled -> worsen inequality local bus face ↑ comp + lower income levels

Answer 30

foreign = interest in buying aust farms ->13.6% land = foreign owned -> compromise in future food security -> may need to import