Global Commerce

Define Export.

• Goods and Services sold by local businesses to overseas consumers

• Goods and Services bought by local consumers from overseas businesses

• Services purchased outside a country eg tourism

• Services sold to consumers outside a country eg. education

Define Factors of Production.

• Resources used in the process of production - natural, labour, capital, enterprise

• limited resources and unlimited needs and wants

• The raw materials to final delivery of producing a product or service

• A system that coordinates the production and distribution of goods and services

Define a Transnational Corporation.

• An organisation with interests and offices in several countries

• An organisation that has a home base in one country but wholly owned subsidiaries in other countries

• An organised exchange of goods and services between buyer and seller

• A process of growing interdependence between countries on trade

Define an economy.

• The total value of all goods and services produced in a year

• The difference between the value of a country's export and the value of its imports

• A person/group that is the final user of a good/service produced

• All activities undertaken for the purpose of producing, distributing and consuming goods and services in a region/area

Define Gross Domestic Product.

• The difference between the value of a country's exports and the value of its imports over a specific period of time

• A pact between two or more nations to reduce barriers to imports and exports

• The total value of all goods and services produced in a country in a given year

• The process of growing interdependence

Define Opportunity Cost.

• The economic problem of having unlimited needs and wants with only limited resources to satisfy them

• The resources used in production of goods/services

• The value of the next best alternative that is given up wen a choice is made

• Purchase of services from outside the country

Define import.

• Good/service purchased by local consumers from overseas businesses

• Good/service sold to overseas consumers by local businesses

• Service purchased from overseas businesses

• A tax on imported goods/services

What is an example of a barrier to trade?

• Tariff

• Opportunity Cost

• Factors of Production

• None of the above

Which is an example of an invisible export for Australia

• Australian tourists in the UK

• Chinese student studying at an Australian university

• Australians spending money online

• Consumers buying goods from local businesses

Define a Supply Chain.

• An entire system of producing and delivering a product or service, from the very beginning stage of sourcing the raw materials to the final delivery of the product or service to end-users

• The part of international trade that does not involve the transfer of goods or tangible objects, which mostly include service sectors like banking, advertising, copyrights, insurance, consultancy etc. invisible export also known as invisible trade is basically associated with the person’s own skill and knowledge is what is 'sold' rather than a piece of software or books.

• All activities undertaken for the purpose of producing, distributing and consuming goods and services in a region or country

• The process of growing interdependence between countries