| A | B |
|---|
| international trade | The exchange of goods and services, financial capital and human capital between countries. |
| nations australia trade with | China, japan, south korea, hong kong, indonesia, usa, uk, new zealand |
| imports | Transactions where Australian households, businesses, governments, and other groups (e.g. Not-for profits) purchase goods/services produced by another nation |
| exports | Transaction where Australian-made goods/services are sold to households, businesses, governments, and other groups in another country |
| providing loans or selling off shares to foreign investor/business | 2 ways businesses can receive income from abroad |
| debt | A word that describes the money you owe another business / country / person |
| equity | A collective word that describes the buying /selling of businesses, shares, bonds |
| dividend | A reward investors receive for purchasing shares in a business |
| shortages | Human capital flow allows Australia to take advantage of skilled foreign labour and address skill ? In certain areas |
| economies of scale | I am an advantage of international trade – E O S |
| jobs | I am an advantage of international trade – J...... Growth or economic growth |
| choice | I am an advantage of international trade – Greater consumer C |
| natural resources | I am an disadvantage of international trade – Depletion of N R |
| wealth | I am an disadvantage of international trade – Unequal Distribution of W |
| trade balance | Term that describes exports (credits) – imports (credits) |
| credit value | Value of exports when recording transactions in merchandise trade |
| debit value | Value of imports when recording transactions in merchandise trade |
| received | Credit represents money R….. in balance of payments |
| outlaid | Debits represents money O….. in balance of payments |
| current account and capital and financial account | Two accounts found in the Balance of Payments |
| four | Current account has this number of sub accounts |
| merchandise trade | Sub account of current account that deals with imports and export |
| net services | Sub account of current account that deals with banking, tourism and education |
| net primary income | Sub account of current account that deals with income received from foreign assets or payments eg dividends, rent or interest |
| net secondary income | Sub account of current account that deals with unilateral payments eg receipt of uk pension, foreign aid |
| trade | BOMT stands for Balance of merchandise |
| services | BOGS stands for Balance of goods and |
| obligations | Transactions in the current account do not have future ? |
| capital and financial account | A deficit in the current account will result in a surplus in this account |
| zero | Current account and capital and financial account must always add up (or arrive at) this value |
| shares | Current and financial account records long term transactions such as loans, property, bonds and |
| net foreign debt | The amount of money that Australia owes overseas minus what overseas owe Australia |
| net foreign equity | The amount of foreign ownership in Australia minus the amount Australians owe oversees |
| net foreign liabilities | he net value of financial obligations that Australia has to the rest of the world. It includes net foreign debt and net foreign equity |
| trade protection | Policies or efforts by government to protect local industry from the threat of imports |
| trade liberalisation | The removal of barriers to promote free trade |
| reasons for trade protection | Protection of infant industry, provide long term security of Australia providing for itself, supports companies that invest heavily in research and development |
| examples of trade barriers | Tariffs, embargos and quotas |
| reallocation of resources | Term used to describe the movement away from textile, footwear and whitegoods industries towards mining, banking and tourism |
| transitional adjustment costs | Costs associated with industries when protectionism was removed eg structural unemployment |
