AUS Trade + Financial Flows

Question 1

AUS ECONOMY RANKING WORLDWIDE

Answer 1

13th

Question 2

Quality of Life HDI Aus ranking

Answer 2

10th

Question 3

How much Gross World Product AUS?

Answer 3

less than 2%

Question 4

Aus primary commodities?

Answer 4

Minerals + Agriculture

Question 5

Aus main services?

Answer 5

Tourism + Education

Question 6

How much is exported of what AUS makes

Answer 6

~25%

Question 7

How much of our GDP is spent on imports

Answer 7

~25%

Question 8

Aus Previous key export markets

Answer 8

Japan, UK, Europ

Question 9

Why did Aus drop UK?

Answer 9

Uk joined the EEC trading bloc and started putting the same tariffs on AUD for trading as everyone else and preferred their own European countries.Austral

Question 10

Australia’s current key export markets

Answer 10

CHINA (india then the rest of the ASEAN countries)

Question 11

When an economy begins growing, what do they need? Who do they call?

Answer 11

Demand for minerals, enter AUSTRALIA

Question 12

Agriculture + Minerals = how much of Australian EXPORTS?

Answer 12

2/3 of AUS exports

Question 13

What industry is AUS exports?

Answer 13

Primary IndustryA

Question 14

Agricultural Products of aus exports:

Answer 14

wheat, wool, beef

Question 15

mineral products of AUS exports

Answer 15

coal, iron, gold, lithium

Question 16

Decline of agricultural exports reasons:

Answer 16

fluctuation in world prices

Trade protection policies

commodity items have little extra value during processing

environmental damage + natural disasters have put a lot out of demand

Question 17

WHat is Asia good at that AUS is not good at ?

Answer 17

High volumn, low cot products

Question 18

Pros of only doign commodity exports?

Answer 18

High commodity prices are positive in the medium to long term because developing economies are currently rapidly growing.

Question 19

Cons of always doing commodity items?

Answer 19

Too reliant on exports for tech stuff such as CHINA as the singular major export market is risky.

Question 20

Future Made in Australia package

Answer 20

attempts ot invest in new export industries such as newer minerals (lithium, renewable hydrogen, green metals and critical minerals processing.)

Question 21

Trade flows

Answer 21

flows of trade such as imports and exports, and their details.

Question 22

Financial flows

Answer 22

Flows of finance, how money moves in the economy between every person to business.

Question 23

Direct investment:

Answer 23

Establishing a new company or buying major shares over 10% of an existing company.

Investor plans to be directly part of management.

Long term investment

Question 24

Portfolio investment

Answer 24

Loans, ecurities, smaller investments

(something to show off, portfolio)

Investor is not usally directly part of management and will nto plan to be.

Short term.

Question 25

Why were international financial flows less important?

Answer 25

Exchange rates used to remain fixed (Bretton Woods system) and internation al captital markets were mainly closed.

Question 26

Main financial flow into Australia was:

Answer 26

Direct investment.

Question 27

What did direct investment after globalisation cause australia?

Answer 27

It created jobs, tech transferring and upscaled australia's production.

Question 28

WHy was Portfolio investment rare?

Answer 28

Overseas loans and thus overseas shareholders were rare and uncommon (technology may be a reason for this. )

Question 29

What caused porfolio investment to grow faster than direct invesment?

Answer 29

Deregulation

Question 30

Aus 2018-2023 increase in investment oversease

Answer 30

8.2%

Question 31

WHy is australia still a net capital importer?

Answer 31

There is an imbalance between AUS investment and investment in AUS. We usually are injected as foreign investments overtake our own investments overseas (we are historically bad domestic savers)

Question 32

The Balance of Payments (BoP)

Answer 32

the record of transactions between AUstralia + the reast of the wrold during a period of time.

Question 33

What makes up the Balance of Payment?

Answer 33

Current account Capital financial account

Question 34

Net Goods?

Answer 34

Difference between earnigns of exports and costs of imports of GOODS.

Question 35

Net Services?

Answer 35

Difference between what we sell and what we buy in services.