GLOBALISATION - Concepts

Question 0

What are Australia’s five major import sources?

Answer 0

• China
• USA
• Japan
• Singapore
• Germany

Question 1

What are Australia’s five major export destinations?

Answer 1

• Japan
• China
• Korea
• USA
• New Zealand

Question 2

What are the two kinds of interest earning investments?

Answer 2

• bank deposits

- debt securities

Question 3

What are 8 reasons behind why businesses expand globally?

Answer 3

• increase sales
• find new markets
• avoid government regulation
• reduce tax
• follow/avoid competition
• gain access to technology
• acquire new resources
• increase output and reduce production costs

Question 4

What are three benefits of international shares?

Answer 4

• can help to spread risks (overseas shares do not always fluctuate at the same time as domestic shares)
• provides access to more industries that that of the Australian Stock Exchange
• offers higher average returns for long-term investments than domestic shares (like with changes in exchange rates)

Question 5

What are 3 risks of international shares?

Answer 5

• doesn’t trade in small volumes so can be hard for traders to sell
• more volatile than domestic shares (prices rise and fall suddenly)
• losses can be larger due to changes in the exchange rate

Question 6

What are the names of the Australian, American and British share markets?

Answer 6

• All Ordinaries
• Dow Jones
• FTSE

Question 7

What are 4 examples of interest earning investments?

Answer 7

• bank deposits
• bonds
• debentures
• bank bills

Question 8

What are 2 advantages of interest-earning investments?

Answer 8

They provide a regular, predictable source of income and greater security than international share markets.

Question 9

What are four types of long-term debt securities?

Answer 9

• debentures
• unsecured notes
• Commonwealth Government bonds
• semi government bonds

Question 10

What are 8 management issues for TNCs?

Answer 10

• commercial
• financial
• legal
• environmental
• transnational employment
• ethical
• exchange rate fluctuations
• political

Question 11

What are 4 benefits of international aid?

Answer 11

• helps reduce diseases, increase life expectancy and reduce fertility rates around the world
• provides public goods
• helps poor countries become more self-sufficient through education
• reduce the likeliness of civil war

Question 12

What are 4 disadvantages of foreign aid?

Answer 12

• doesn’t address the underlying cause for the poverty
• does not often reach the people who need it the most
• can be used to finance badly planned or nonessential projects
• can make countries dependent on others