Terms: M-T Flashcards
Merchandise Trade
Transactions involving the transfer of ownership of a tangible and moveable object
Multilateral Trade Agreement
An agreement between a number of countries, usually within a region, to lower protection in order to encourage increased trade flows
Net Capital Importer
An economy whose value of imported goods and services is higher than its exported goods and services
Net Current Transfers
Transfer of income from non-residents to residents minus transfer of income from residents to non-residents
Net Foreign Debt
The level of outstanding loans owed by Australian residents to overseas residents minus the level of outstanding loans owed by overseas residents to Australian residents
Net Foreign Equity
The value of Australian assets such as land, shares and companies in foreign ownership minus the value of foreign assets in Australian ownership
Net Foreign Liabilities
Australia’s financial obligations (foreign debt + equity) to the rest of the world minus the rest of the world’s financial obligations to Australia
Portfolio Investment
The short-term movement of funds between economies for loans or the purpose of small share holdings
Protection
Government policies that give domestic producers an artificial advantage over foreign competitors
Quota
Restrictions on the amounts or values of various kinds of goods that may be imported
Real GDP per capita
The total economic output of a country divided by the number of people and adjusted for inflation
Reserve Assets
Holdings of foreign currency and gold held by the RBA to use in foreign exchange markets in order the influence the value of the Australian dollar
Revaluation
Occurs when the government or central bank increases the value of a currency that operates on a fixed exchange rate
Servicing Costs
The money that is required to cover the repayment of interest and principal on debt for a particular period
Speculator
Investors who buy or sell financial assets with the aim of making profits from short-term price movements
Structural Change
Changes in the patterns of production that reflect changes in technology, consumer demand, global competitiveness and other factors
Subsidy
Cash payments from the government to business to encourage production of a good or service and influence the allocation of resources in an economy
Tariff
Taxes on imported goods imposed for the purpose of protecting Australia’s industries
Terms of Trade (TOT)
Measures the relative movements in the price of an economy’s imports and exports over time
Terms of Trade Index
Export Price Index/Import Price Index *100
Trade
The transfer of goods or services from one economy to another, often in exchange for money
Trade Agreement
A treaty between two or more economies that removes protection and helps them to trade with each other
Trade Liberalisation
The process of reducing tariffs, subsidies and other barriers to trade in order to encourage increased linkages between economies
Trade Weighted Index
A measure of the value of the AUD against a basket of foreign currencies of major trading partners, weighted according to their significance
