Trade

Question 1

Who are Australia’s 3 major trading partners?

Answer 1

China, Japan and USA

Question 2

What countries are Australia already in FTAs with?

Answer 2

NZ, Singapore, Thailand, USA, Chile, Malaysia

Question 3

Is Australia in a Free Trade Agreement with China yet?

Answer 3

No. Négociations are still in place

Question 4

Define ‘bilateral’

Answer 4

two countries in a FTA

Question 5

Define ‘multilateral’

Answer 5

more than two countries in a FTA

Question 6

What are Australia’s biggest imports?

Answer 6

technology, clothes etc. (manufactured)

Question 7

What are Australia’s biggest exports

Answer 7

minerals/fuels, agriculture, education

Question 8

Define ‘import’

Answer 8

products of a foreign country brought into another country

Question 9

Define ‘export’

Answer 9

products produced in the country sold to other foreign countries

Question 10

Define ‘trade weighted index’

Answer 10

measuring AUD against currency of our trading partners

Question 11

Define ‘exchange rates’

Answer 11

value of one currency against another or a number of other currencies

Question 12

Define ‘protectionism’

Answer 12

By which trade in countries is restricted in some way (to reduce no. of imports)

Question 13

Define ‘tariffs’

Answer 13

A tax increasing the price of a good coming into a country - making it more expensive to buy

Question 14

Define ‘embargo’

Answer 14

A total ban on a specific good coming into a country

Question 15

Define ‘subsidies’

Answer 15

Government paying an amount of money to a local firm to help funding

Question 16

Define ‘quota’

Answer 16

restriction on the number of goods coming into a country

Question 17

Explain ‘trade liberalisation’

Answer 17

It aims to free up world trade and break down the barriers of international trade. Basic philosophy rests on the principle of comparative advantage

Question 18

Define ‘comparative advantage’

Answer 18

Where one country specialises in a certain type of resource e.g. China good with labour, Aus good with natural/finite resources

Question 19

Positives of trade liberalisation

Answer 19

promotes international specialisation, increases world output, promotes efficient use/allocation of world resources etc.

Question 20

How does trade liberalisation help developing countries?

Answer 20

Allows them access to the heavily protected markets of the developed world thus helping promote development

Question 21

Reasons for anti-globalisation protests

Answer 21

many people believe it will widen poor/rich gap, increase in production will see issue of environment disregarded, loss of culture due to imports