Competitive advantage and economic interdependence

Worldwide markets where the buying/selling of goods and services takes place by all nations is known as?

• Interdependence

• Global Economy

• Free Market

• Competition

Which of the following is a reason countries seek to participate in global trade?

• To increase competition in the domestic market

• To visit foreign countries

• To obtain goods they cannot produce themselves

• To create jobs in other countries

Which of the following is a way global trade benefits domestic producers?

• It reduces the domestic demand for their goods and services

• It creates new jobs in other countries

• It reduces profitability

• It creates new markets for their goods and services

Which of the following is a way consumers benefit from global trade?

• It results in less choice in the market place

• It lowers the prices of goods and services

• It increases unemployment benefits

• It results in fewer job opportunities

Goods or services a country gets from another country are called?

• Imports

• Exports

• Products

• Profits

A tax on any good or service coming into a country is called a .......?

• Tariff

• Subsidy

• Discount

• Profit

Goods or services a country sells to another country are called?

• Imports

• Quotas

• Exports

• Profits

Which of the following in not an impact of the application of tariffs and quotas EXCEPT for:

• They reduce the amount of trade between nations

• They protect domestic producers from foreign competition

• They create an incentive for countries to trade more with each other

• They reduce the amount of trade between nations

The increase in international economic interdependence means that the economic conditions and policies in one nation increasingly affect economic conditions and policies in other nations. (True or False)

• True

• False

A disadvantage of globalisation for Australian manufactures would include which one of the following?

• A less experienced workforce

• Low-cost competition from overseas firms

• Access to wider markets

• An increase in local salaries