Task 2 - Australia's Place in the Global Economy Flashcards
define ‘appreciation’
An increase in the value of an economy’s currency in terms of another.
define ‘balance of payments’
The record of the transactions between Australia and the rest of the world given a certain period.
define ‘bilateral trade agrrement’
An agreement between two economies to lower tariff levels
define ‘bilateral trade agrrement’
An agreement between two economies to lower protection levels to increase trade flows.
define ‘capital and financial account’
Records the borrowing, lending, sales and purchases of assets between Australia and the rest of the world.
define ‘commodity’
A raw material or primary agricultural product that can be bought and sold.
define ‘composition of trade’
What is being traded between two countries.
define ‘depreciation’
A decrease in the value of an economy’s currency in terms of another.
define ‘deregulation’
The removal of government controls over an industry that is intended to make business more responsive to market forces.
define ‘current transfers’
Transactions where goods, services or financial items are traded without something of economic value being received in return.
define ‘exchange rate’
The price of one currency in terms of another economy’s currency.
define ‘exports’
Goods or services that are produced domestically and purchased by overseas.
define ‘derivatives’
A product which value is dependant on the value of an underlying asset (e.g. commodity or currency).
define ‘floating exchange rate’
The value of an economy’s currency is determined by the forces of demand and supply in foreign exchange markets.
define ‘direction of trade’
The countries in which another country chooses to trade with.
