Economics Flashcards
Interdependence
Where two or more parties e.g countries depend on each other for the the exchange of goods and necessities
Trade
The buying and selling of goods and services
Globalisation
The increasing spread of trade of goods and services, technology, information and employment between different nations and cultures
International competitiveness
A way of measuring productivity and the relative costs of goods and services in a nation, it’s also the way a nation successfully competes overseas
Exports
Are goods and services produced locally and sold to overseas countries
Imports
Are goods and services that are produced overseas and purchased by Australians
Migration
The movement of people from one country to another to benefit from greater economic opportunities in the receiving country
Tourism
A social, cultural and economic phenomenon which entails the movement of people to countries or places outside their usual environment for personal or business/professional purposes
Supply chain
The stages thar a good or service goes through from the producer to the consumer, there are 5 stages in the supply chain
Stage 1 of the supply chain
Supply of the natural resources where the raw materials are accumulated
Stage 2 of the supply chain
Manufacturing the good or service using capital and labour resources
Stage 3 of the supply chain
Marketing and advertising of the good or service
Stage 4 of the supply chain
Distribution of the good or service both locally and globally- transport channels
Stage 5 of the supply chain
The selling of the good or service to the consumer through retail outlets
TNC’s
TNC’s stand for transnational corporations are a company that has operations in more than one country, they are a global business and can streamline the stages within the supply chain.
Outsourcing
The practice of hiring a party outside a company to perform services or create goods
Savings
A portion of income not spent on expenditure
Investment
Spending done by businesses and households which increase the economy’s capacity to produce goods and services
Risk Tolerance
The amount of loss an investor is prepared to handle when making a decision on an investment
Shares
Buying a share means you are investing money into a company, so a share is a company you invest in
Superannuation
Money put aside while you work for you to live off of when you retire
Consumer Scam
A scam a consumer faces when buying something
ACCC
The Australian Competition and Consumer Commission is an independent commonwealth statutory authority whose role is to enforce the competition and consumer act 2010 and aims at promoting competition, fair trading and regulating national infrastructure for the benefit of all Australians
Competitive Advantage
Factors that allow a company to produce goods or services better or more cheaply than its rivals
