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Definition
| Refers to the freer movement of goods, services, investment, ideas and people around the world. This means opening up the international borders to the flow of trade and investment. |
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Definition
| Australia’s imports are determined by domestic economic activity. Higher economic activity in Australia raises domestic income which increases demand for imported consumer goods and services while increased investment will increase capital goods imports. |
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Definition
| If Australia’s inflation rate is greater than our trading partners it will reduce the competitiveness of foreign goods. |
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| Relative interest rates (the interest rate differential) |
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Definition
| If interest rates in Australia are relatively higher than other economies, especially the US then financial and capital will flow into the economy. |
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Definition
| Is related to technical know how, the use of skilled labour and advanced production techniques. |
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Definition
| The cost efficiency of domestic firms relative to foreign firms will determine their success in the global market. |
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| International competitiveness |
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Definition
| The degree to which a country can produce goods and services which meet the test of international markets, while simultaneously maintaining and expanding the real incomes of its people over the long term. |
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Term
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Definition
| Is the degree to which a country can produce goods and services which meet the test of international markets, while simultaneously maintaining and expanding the real incomes of its people over the long term. |
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| Foreign direct investment |
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Definition
| Occurs when a firm in one economy acquires at least 10% of ownership of a foreign firm. |
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Definition
| Is basically how open a country is and how willingly it is to trade internationally. |
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Definition
| The price of one countries currency in terms of another countries currency. |
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Definition
| A 'basket' of currencies weighted according to their importance in trade flows with Australia. The TWI can accurately reflect the changes in the value of our currency. |
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Term
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Definition
| The market in which the currencies of different countries are bought and sold. Foriegn exchange is the currency of another country that is needed to carry out intonation transactions. |
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Definition
| An index that measures the relative movements in the prices of exports and imports. |
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Term
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Definition
| A systematic record of all economic transaction between the residents of Australia and the rest of the world. |
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Term
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Definition
| A trading account it also summarises the purchase and sale of goods and services, income and current transfers. |
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