Free trade agreements

Question 1

What is a Free Trade Agreement?

Answer 1

FTAs are international agreements that REMOVE or REDUCE certain trade and investment barriers between countries.

Question 2

Features of FTAs?

Answer 2

Removal of tariffs
Quotas
Subsidies

Question 3

Subsidies meaning?

Answer 3

Payment provided by gov to domestic firms to encourage production.
Reduces prices and produces domestic products.

Question 4

Tariffs meaning?

Answer 4

Taxes that overseas businesses have to pay before selling goods and stocks in AUS

Question 5

Quotas meaning?

Answer 5

The amount a business is able to provide of their goods and stocks.

Question 6

Multilateral meaning? Bilateral?

Answer 6

More than two countries, two countries

Question 7

What is trade protection? Protectionism?

Answer 7

Encourages domestic industry to increase GDP and employment

Question 8

What happens without Protectionism?`

Answer 8

Inevitable some domestic businesses will not be competitive, will close businesses and unemploy people.

Question 9

Australia’s stance towards free trade/protectionism?

Answer 9

We lean towards free trade, as population is small and intergrated with the global economy. standard of living will lessen if we did not trade

Question 10

Aus Trade partners?

Answer 10

China, Us, UK, Japan, new zealand