Trade

Question 1

What is globalisation?

Answer 1

Globalisation is the expansion of business operations to an international scale.

Question 2

What is trade?

Answer 2

Trade is the exchange of goods and services between different countries.

Question 3

What are imports?

Answer 3

Goods and services bought by Australians from overseas.

Top countries Australians buy from; China, U.S.A and Japan

Question 4

What are exports?

Answer 4

Goods and services sold by Australians to individuals or governments overseas.

(Top countries Australians sell to; China, Japan, South Korea)

Question 5

What is a tariff?

Answer 5

Tariffs are taxes on imports designed to limit the amount of imports by making them more expensive and therefore promoting domestic production.

Example: Japanese car is cheaper than Australia’s but when a 75% tariff is added, it becomes more expensive and we now want the Australian car.

Question 6

What is a Multinational company?

Answer 6

Companies that operate in more than one country. Their head office is often based in a major economic centre (eg. London, New York, Tokyo) but they have branches in other countries.

Question 7

What are three reasons for the growth of multinational companies?

Answer 7

1. Rapid improvement in technology eg. Internet and transport
2. Laws regarding foreign investment have relaxed in recent times
3. Trade agreements between countries have seen a move towards FREE TRADE and the removal of Tariffs (tax on imports) and Quotas (set limit on number of imports).

Question 8

What goods does Australian export?

Answer 8

Iron ore, gold, coal, meat, wool, alumina, wheat, medical, machinery and transport equipment

Question 9

What goods does Australia import?

Answer 9

Machinery and transport equipment, computers and office machines, telecommunication equipment and parts; crude oil and petroleum products