WACE Economics-Globalisation

Which will occur as a country becomes more developed?

• spending on education and training falls

• there is more employment in the manufacturing and services sectors

• foreign aid increases

• agriculture’s share of GDP increases

Which of the following slows the process of globalisation?

• increased levels of labour mobility

• reduced communication costs

• moves away from trade liberalisation policies

• reduced levels of protection offered by advanced economies to their local producers

Globalisation has seen rapid movements in:

• goods, services and people between countries

• goods, services and investments between countries

• goods, investments and people between countries

• all of the above

International competitiveness is the degree to which a country's goods and services can meet the test of ------------- ----------------- while simultaneously maintaining and expanding the incomes of its people in the long term.

Benefits of Globalisation

• Low Inflation

• Access to Foreign Investment

• Environmental Damage

• More Employment Opportunities

Costs of Globalisation

• Environmental Damage

• Uneven Gains from Globalisation

• Bad Behaviour of MultiNational Corporations

• Greater Variety of goods and services

Which of the following is likely to improve Australia's competitiveness in the global economy.

• increased spending on transport infrastructure in Australia

• an appreciation of the Australian dollar

• investing more in human capital - develop skills and expertise

One valid argument against globalisation is that it may

• increase living standards in countries that reduce trade barriers

• lead to high rates of domestic inflation because of higher import prices

• cause volatile capital flows that can lead to economic instability

• shift natural resources to industries with comparative advantage

Who are the losers of structural change in the pattern of production

• Older, less skilled, less technologically literate

• People with capital and savings

• Young, skilled and mobile workers in developed economies

• People who own business and property

The process of global integration generates significant economic economic growth. The factor which have facilitated to promote economic growth is

• Environmental insecurity

• New growth ' hot-spots'

• Exposure to external shocks

• The creation of trading blocs