Hass Flashcards
define house holds
The household sector consists of individuals who consume, save money, and pay taxation to the government.
explain the role of households in the economy.
The role of the households is to consume goods & services, save money, give resources to firms, and pay taxes.
Define businesses
A business is an organisation or enterprise engaged in the production and trade of g+s, usually for a profit. the business sector aims to make a profit off g+s and receive revenue and provide jobs for individuals. They must pay expenses from the revenue earned (rent, tax and wages). Businesses also pay taxes to the government.
explain their role of businesses in the economy
Create jobs and income in the economy. They must pay expenses from the profit earned and to pay taxes to the government.
Calculation of profits
revenue - tax/wages/rent = profit
define financial sector
The financial sector is the middleman between savers and investors.
define investment
Investment - when businesses borrow money when they need to expand their business.
define mortgage loans
Mortgage loan - when consumers buy expensive items, they take out a loan called a mortgage loan and pay off the loan over time
define credit
Credit - borrowing money with the promise that you will pay it off, often with interest.
describe the role of the financial sector
The financial sector is made up of those who act as a middleman between savers and investors. such as banks when house holds invest.
explain the role of the government in the economy
Governments use taxation revenue to provide goods and services such as schools & hospitals, pensions etc. They provide goods and services that are not profitable
Define exports
Exports - Goods sold overseas
define trade partner
Trade Partner- is used to describe an ongoing exporting or importing relationship.
define imports
Imports - goods purchased from overseas
Name Australia’s major 2-way trading partner, and what they export and import (you need to know the top 5 from each category
Exports :
China - Iron ores - 21.6
USA - coal - 11.5
Japan - natural - 10
Republic of Korea - Education travel services - 8.3
Uk - Gold - 5.1
Imports :
China - Personal travel services - 8.4
USA - Refined petroleum - 5.5
Japan - Passenger motor vehicles -4.8
Republic of Korea -Telecommunication Parts -3.8
Uk - Computers - 2.6
Describe the way international trade affects Australia
Exports = money coming in to Aust
· Imports = money going out of Aust
·
· & the impacts on jobs income production
Describe Australia’s trade relationship with China
The Australian economy receives a large amount of its money from the Chinese economy, mostly through imports, education and tourism. Recently China hit Australian industries with a raft of trade sanctions and accusations, effectively shutting trade down.
Describe Australia’s trade relationship with UK
With the Uk Australia holds a FTA which is a free trade agreement. The benefits of this agreement include that it creates new export opportunities and jobs for businesses by eliminating tariffs on over 99% of Australian goods exported to the Uk. Both countries will offer enhanced opportunities to live and work temporarily in each other country.
define leakages and injections
Leakages - are money flowing out of the economy
Injections - are money flowing into the economy
calculate the equilibrium level of income
The equilibrium in the circular flow is that leakages should equal injections hence the equation is S+T+M = I+G+X
Explain how different events impact the circular flow of income.
Taxes (T) imposed by the government reduce the flow of income.
Define and provide an example of a global supply chain
A global supply chain is when a product is sourced/ made in different countries and imported to others before getting to the distributing country. an example of a global supply chain is Apple.
Define globalisation
globalisation is the process by which individuals or businesses develop international influence
Explain the linkages that exist between countries
Trade with other nations, Foreign investment, Income, Technology , Migration
Define MNC and TNC with examples
MNC
multi corporations (MNCs) are those that operate in several countries but are managed from one (home) country.
TNC
transnational corporations are those that do business in more than one country and d not consider any particular country their national home.
Explain the advantages and disadvantages of MNCs
Advantages:
Job Opportunities: MNCs create jobs in different countries.
Technology and Skills: MNCs bring advanced technology and knowledge to different countries.
Economic Growth: MNCs can boost the economy of a country.
Disadvantages:
Local Businesses Suffer: selling goods for cheaper prices making it hard for small businesses to compete.
Cultural Influence: MNCs can spread their culture and ideas, which might overshadow local traditions and values.
Profit Focus: MNCs might prioritise making money over helping people.
Explain the advantages and disadvantages of TNCs.
Advantages:
Global Innovation: TNCs bring together smart people from different countries to create new ideas.
Knowledge Sharing: TNCs share information and skills across borders.
Efficiency: TNCs can use resources from different places, making production more efficient.
Disadvantages:
Lack of Control: TNCs can be so big that no single government can fully control them.
Inequality: TNCs sometimes create a big gap between rich and poor.
Environmental Impact: TNCs might harm the environment by polluting or using up natural resources.
Circular flow of income
draw and look at picture to check.
