Significance of International Trade

Question 1

why is trade important

Answer 1

can expand a nations consumption possibilities by providing access to other countries production through imports

Question 2

what percentage of jobs are linked to trade in aus

Answer 2

20%

Question 3

what is specialisation

Answer 3

when people focus on tasks that they are best suited and then use the income to purchase things they cannot produce themselves

Question 4

what do Australia and Japan specialise in and why

Answer 4

Aus: specialises in mineral production as we have lots of natural resources
Jap: specialises in manufactured goods as they have a large, skilled workforce and industrial base

Question 5

what makes specialisation possible

Answer 5

difference in resource distribution (qual/quant) affects cost of supply. Countries should export surplus of their speciality and important things less efficiently produced