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TASEconomicsQuick questions
Macroeconomics
Quick questions on International Trade and Globalisation - TCE Economics (Tasmania)
4short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.
What is protection?Show answer
Protection refers to government policies that shield domestic industries from foreign competition. The main methods are:
What are the balance of payments?Show answer
The balance of payments records all transactions between Australia and the rest of the world. It has two parts. The current account records trade in goods and services, plus primary income (such as interest and dividends) and secondary income. The capital and financial account records flows of investment and borrowing.
What are exchange rates?Show answer
The exchange rate is the price of the Australian dollar in terms of another currency. Australia uses a floating exchange rate, so the dollar is set by demand for and supply of the currency in the foreign exchange market. Demand for the dollar rises with exports, foreign investment inflows and higher domestic interest rates.
What is globalisation?Show answer
Globalisation is the growing integration of economies through trade, investment, technology, finance and the movement of people. For Australia it has brought lower prices, access to capital, new technology and larger markets, while increasing exposure to global downturns, commodity price swings and competition for local industries.
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