Definition and Measurements
What is the definition of International Trade
International trade refers to the exchange of goods and services between countries.
Explain one benefit of international trade for regional living standards.
International trade can lead to increased economic activity, job creation, and higher incomes, which can improve regional living standards.
How does technological change influence international trade?
Technological change can lead to increased productivity, lower production costs, and the development of new products, which can boost a country's international trade.
What is the perspective of households regarding international trade?
Households benefit from access to a wider range of goods and services at competitive prices through international trade.
Define the term "balance of trade."
The balance of trade is the difference between the value of a country's exports and imports of goods and services.
Name one statistical indicator used to measure Australia's trade
One statistical indicator is the balance of trade, which compares the value of a country's exports to its imports.
How do trade tensions impact Australia's specific industries?
Trade tensions can disrupt supply chains, increase uncertainty, and lead to reduced exports and potential economic challenges for specific industries.
Explain the role of exchange rates in international trade.
Exchange rates determine the value of a country's currency relative to others, affecting the cost of exports and imports and influencing trade competitiveness.
Provide an argument in favor of trade liberalization from a regional perspective.
Trade liberalization can attract foreign investment, create jobs, and stimulate economic growth in specific regions.
Explain the concept of trade surplus.
A trade surplus occurs when a country exports more goods and services than it imports, resulting in a positive balance of trade.
hich major trading partner has seen recent trends in increased financial flows with Australia?
China is a major trading partner of Australia that has seen increased financial flows in recent years.
Why is trade liberalization important for the national economy?
rade liberalization can lead to increased competition, greater efficiency, and access to a wider range of goods and services, ultimately benefiting the national economy.
Name one aggregate supply factor influencing Australia's trade patterns.
One aggregate supply factor could be changes in the productivity of domestic industries or changes in the availability of natural resources.
How do businesses view protectionism in international trade?
Some businesses may support protectionism to shield themselves from foreign competition, while others prefer free trade to access larger markets.
What is the difference between absolute advantage and comparative advantage in trade?
Absolute advantage is when one country can produce a good more efficiently than another, while comparative advantage is when one country has a lower opportunity cost in producing a good.
What are key features of Australia's trade relationships with Asian countries?
Key features may include geographical proximity, cultural ties, and growing trade volumes with countries like China, Japan, and South Korea.
Describe the impact of protectionism on international living standards
Protectionism can lead to higher prices for imported goods, reduced consumer choices, and potential retaliatory measures, which can negatively impact international living standards.
Discuss the impact of trade protection on a specific industry.
Trade protection, such as tariffs or quotas, can protect domestic industries from foreign competition, potentially preserving jobs but potentially leading to higher prices for consumers.
What is the government's role in addressing international trade tensions?
Governments can negotiate trade agreements, resolve trade disputes, and implement policies to promote fair and open trade, aiming to address tensions and benefit their economies.
Define the term "trade barrier."
A trade barrier is any government policy or measure that restricts or limits international trade, such as tariffs, quotas, or import restrictions.
Discuss the recent trends in Australia's trade balance.
Recent trends may include fluctuations in trade surpluses or deficits, which can be influenced by changes in export and import levels, exchange rates, and global economic conditions.
Explain the relation between the current balance account and the trade balance
The current account balance is then the trade balance plus net factor income (such as interest and dividends from foreign investments or workers' remittances) and transfers from abroad (such as foreign aid), which are usually a small fraction of the total.
Explain the concept of comparative advantage in international trade.
Comparative advantage is when a country can produce a good or service at a lower opportunity cost than another country, leading to mutually beneficial trade.
Discuss an argument against trade liberalization from an international perspective.
An argument against trade liberalization is that it can disproportionately benefit larger and more powerful countries, potentially harming smaller or less developed nations.
Explain the concept of "comparative advantage" in international trade, and provide a real-world example illustrating how it influences trade between two countries.
Comparative advantage is when one country can produce a specific good or service at a lower opportunity cost compared to another country. It's about efficiency in production and is a key concept in international trade theory. Countries with comparative advantages specialize in producing the goods they can produce most efficiently, and this specialization leads to mutually beneficial trade between nations.