Chapter 1 Global Interdepedence 1-10 Flashcards
What is globalisation?
Globalisation is the process by which the world is becoming increasingly interconnected.
What characterises globalisation?
growth in trade
international investment,
rapid movement of information and people around the globe.
What is ‘McDonaldisation’ in the context of globalisation?
McDonaldisation’ refers to the spread and triumph of American brands such as McDonald’s, Coca-Cola, and Google.
(WTO) What are the 4 trends that have affected the relationship between trade and development since the start of the millennium?
economic growth of developing countries.
Higher prices for agricultural goods+ natural resources.
growing integration of global production through supply chains.
increasing interdependence of the world economy,
How does the exchange rate affect economic transactions between different economies?
Exchange rate movements impact export and import prices. if the Australian dollar (AUD) depreciates, exports become cheaper for overseas buyers, while imports become more expensive for Australians.
How does world economic growth affect Australia’s exports?
Australia’s exports are dependent on foreign demand. Increased economic growth in foreign countries will increase the demand for Australia’s exports
How does domestic economic growth affect Australia’s imports?
Higher economic activity in Australia raises domestic income, which increases demand for imported consumer goods and services, and increased investment will increase capital goods imports.
How do relative inflation rates affect economic transactions?
If Australia’s inflation rate is greater than its trading partners, it will reduce the competitiveness of domestic goods and increase the competitiveness of foreign goods.
How do relative interest rates affect financial capital flow?
If interest rates in Australia are relatively higher than other economies, financial capital will flow into the Australian economy.
How does productivity and cost efficiency affect global market success?
The cost efficiency of domestic firms relative to foreign firms determines their success in the global market. Productivity improves cost efficiency by increasing output per worker.
What is international competitiveness?
ability of a country to compete successfully against other countries in international trade, while simultaneously maintaining and expanding the real incomes of its people over the long term.
4 factors that drive competitiveness (IMD)
Economic performance
Government efficiency
Business efficiency
Infrastructure
Simple Def of International Competiveness
Ability of country to compete successsfuly against other countries in intrnational trade
