Globalisation

Question 1

Globalisation

Answer 1

Opening of international boarders to the flow of trade, investment, immigration, information and technology

Question 2

What caused globalisation to rise?

Answer 2

WTO, internet, fall of communism

Question 3

WTO

Answer 3

World Trade Organisation

Question 4

International competitiveness

Answer 4

The degree to which a country can 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

Question 5

Real unit labour costs

Answer 5

Changes in wages relative to productivity

Question 6

Productivity

Answer 6

How much output can be produced from a given amount of input, total production (GDP)/hours worked

Question 7

When do real unit labour costs fall?

Answer 7

Productivity rises, wage costs fall

Question 8

TWI

Answer 8

Trade weighted index measures change in value of currency relative to major trading partners

Question 9

What major event led us to realise the importance of globalisation?

Answer 9

GFC 2008

Question 10

What does globalisation imply?

Answer 10

Opening up international borders to flow of workers, trade, tourism and investment

Question 11

What is globalisation to economists?

Answer 11

Triumph of free trade and competitive markets over protection and restricted markets

Question 12

What has WTO declared the most significant economic event of our time?

Answer 12

Rise of developing world, giving them new access to markets/technology/investment

Question 13

4 trends affecting relationship between trade and development

Answer 13

Economic growth of many developing countries
Growing integration of global production through supply chains
Higher prices for agricultural goods and natural resources
Increased interdependence of the world economy

Question 14

What is globalisation blamed for?

Answer 14

Poverty, inequality, environmental pollution

Question 15

How much of Australia’s GDP is exports?

Answer 15

~20%

Question 16

What does Australia import a lot?

Answer 16

Capital goods, machinery, motor vehicles, consumer goods

Question 17

What are the top 4 ranked global exports?

Answer 17

Fuel

Question 18

MNC

Answer 18

Multinational corporations

Question 19

How are real unit labour costs measured?

Answer 19

GDP/hours worked

Question 20

PPP

Answer 20

Purchasing power parity theory, identical goods should cost the same in different countries

Question 21

How much of world exports is tourism?

Answer 21

30%

Question 22

Why does Australia heavily rely on foreign investment?

Answer 22

To complement our low domestic savings

Question 23

NAFTA

Answer 23

North American Free Trade Agreement

Question 24

ASEAN

Answer 24

Association of South East Asian Nations

Question 25

Intermediate goods

Answer 25

Goods within the supply chain

Question 26

Trade blocs

Answer 26

Nations that trade together

Question 27

Absolute advantage

Answer 27

producing more of a good and at a greater efficiency than competing nations, complete control over product and other nations shouldn’t bother competing

Question 28

What does Australia export?

Answer 28

Natural gas, bauxite, iron ore, coal

Question 29

WTO aims

Answer 29

Liberalising international trade