Our Economy - Global Influence On The Australian Economy Flashcards
1
Q
Benefits of globalisation
A
- Increased interation between global entities
- Strengthened economic ties
- Social, political, cultural and technological exchange
- Rapid communications and travel
2
Q
Globalisation
Positive impact on the global market
A
- New markets and higher company profits
- More hiring and jobs
- Nations specialise on efficient production
- Global competition drives cost savings and efficiency
3
Q
globalisation
Negative impacts on the global market
A
- poorer conditions for poor countries
- Home country workers may lose jobs
- Multinational corporations may exploit resources and labour in other countries
- Allows for undercutting of competitors, increased job loss and less consumer price
4
Q
Impact of globalisation on the Australian economy
A
- Boosts GDP
- Local farmers compete globally
- Creates weath and employment domestically and abroad
- More imported goods and services for cheaper
5
Q
Impact on global economic confidence
And factors
A
- outlook on the economy shifts
Factors - Economic news
- unemployment
- real wages
- inflation
- debt levels
- economic growth
6
Q
Impact of globalisation on interest rates
and factors
A
- Slightly influenced by central bank alterations but reduced by exchange rate
Factors - global investor risk taking
- bond markets
- banking system
- capital flow
- exchnage rates
7
Q
What are the two types of exchange rates?
A
- fixed exchange rate - set by government
- floating exchange rate- determined by supply and demand
- anything that affects demand and supply affects the value of AUD
8
Q
Changes in trade and financial flow in Australia
A
- Post WWII
- Increase in transport, internet and free trade agreements boost GDP
- Deregulation and floating exchange rates increase capital mobility
- Increase in Foreign Exchange Markets
9
Q
Direct Foreign Investment
A
establishing physical assets in another country
10
Q
Australian global investment change
A
- since 1992 global investment from Australia has increased tenfold
- mainly from Asian and middle eastern nations
11
Q
Changes in the Global Labour Market
A
- Specialisation of labour force characteristics
12
Q
What are the two forms of Labour Movement?
A
- High End (highly skilled workers moving to developed economies for better pay and conditions)
- Lower End (unskilled migrants to wealthier nations in search of employment or security)
13
Q
International Business Cycles
define
A
fluctuations in global economic activity over time.
- consequently effect other nations
14
Q
Influences on international business cycles
A
- global investment flow
- global financial markets
- global interest rates
- international trade
- market confidence
- commodity prices
- multinational corporations
