GLOBAL INDEPENDENCE Flashcards
define globalisation
the freer movement of goods and services, investment, ideas and people around the world.
- in other words means the triumph of free trade and competitive markets over protection and restricted markets
info bout globalisation
- Occurred in two primary phases (1850-1913 and 1950-today)
- Has rapidly increased over the past 25 years following the fall of communism and the creation of the WTO and the internet
what’re the 4 trends which affect trades and relationships
- Economic growth of developing nations
- Growing integration of production through supply chains
- Higher prices for agricultural goods and natural resources
- Increasing interdependence
what are there 5 key links between economies
- global exports,
- fuels,
- chemical,
- automotive product and
- tourism
info bout tourism
- Tourism accounts for 30% of the world’s exports of commercial services, also main source of foreign exchange for 1/3 of developing countries and ½ for less developed
- Australian tourism = 6th largest X and the largest Y
- Foreign Investment is very important to AU to complement its domestic savings e.g., MINING BOOM
what are the 3 dominating countries of world trade
Germany, The US and China
who is the largest exporter and importer
China = largest exporter, US = largest importer
who benefits from export
When countries export producers benefit from higher prices and greater productivity
who benefits from imports
When countries import, consumers gain from cheaper prices and greater consumption
info about trade
- There has been a rapid growth of global trade post 2002
- There is a strong positive relationship between trade and growth
- Trade intensity is an important catalyst for increasing real income and living standards
- Trade is the engine of growth; it is the force behind both domestic and foreign growth
what makes up trade
Merchandise and goods account for 80% of trade, Services 20%
what caused trade to grow twice as fast as world GDP since 1980
Liberalisation of markets to the flow of goods, services and investment
Increases in technology
Rise of MNCs
what are the 3 categories of merchandise trade
Agriculture
Mining and fuels
Manufactured goods
what are the advantages of trade
- Greater variety of goods and services, greater quantity
- Lower prices for consumers, higher for producers
- X and Y = consumers gain from lower prices and higher consumption
define international competitiveness
- is defined as the degree to which a countrycan produce goods and services which meet the test of international markets while simultaneously maintaining and expanding the real incomes of its people over the long term
