| A | B |
|---|
| globalisation | an expansion of world trade in goods and services leading to greater international interdependence |
| tyranny of distance | a term that describes the trade challenges faced by Australia due to its geographical location |
| free trade | an absence of tariffs, quotas and regulations designed to reduce or prevent trade among nations |
| protectionism | where an action is taken that reduces international trade |
| quota | a physical limit on the number of goods imported into a country |
| tariff | a tax placed on imports to increase the price and reduce the quantity demanded |
| embargo | a total ban on trade |
| methods of protectionism | tariffs, quotas, embargo and regulations |
| factors that have influenced globalisation | improvements in transportation Improvements in information and communication technology |
| world trade organisaiton | the global organisation aiming to promote multinational trade by removing obstacles and create a level playing field for all countries |
| benefits of globalisation | protects local firms from foreign competition and Local jobs created |
| drawbacks of globalisation | higher product prices and products may decline in quality |
