Chapter 8.6

Question 1

What are the negative effects of interconnectedness between countries?

Answer 1

• Faster spread of disease
• Internet fraud and identity theft, as well as organised crime have been a lot easier since the widespread use of electronic communication.

Question 2

How has China’s economic growth benefited Australia?

Answer 2

• China is the Australia’s largest export consumer (they buy large amounts of iron and coal)
• This has generated a mining boom which has contributed significantly to our growth in GDP.
• Australia benefits from the cheap prices of imported goods from China.

Question 3

What is GDP?

Answer 3

GDP is gross domestic product;
This is the total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period.

Question 4

What was the global financial crisis (GFC) of 2006 and 2007?

Answer 4

• People were loaned mortgages from banks that they couldn’t pay off, which lead to house prices going down. This meant that the amount of money that people had to pay off in their mortgage was more than their house sell price would be, and thus they gave/sold the house to the bank.

Question 5

What was the global financial crisis (GFC) of 2008 and 2009?

Answer 5

International trade and the flow of money between nations means that events that occur in one country can have an influence on the economic conditions in other countries — for better or worse.

Question 6

What effect did the Japanese tsunami of 2011 have on the Australian economy?

Answer 6

• Less Japanese demand for Australian goods
• Japan imported more food from Australia
• Japan is moving away from nuclear power, and using gas and coal. (which we sell)