MGMT1005 W10 - International Trade (2026 S2)

International trade is the buying, selling and exchange of goods and services across national borders.

International trade is when economic agents buy, sell or exchange goods and services.

International trade occurs across borders and across products and services.

International trade is when goods and services are exchanged across borders.

Trade intervention occurs when governments try to meet their WTO and economic/political obligations.

Trade intervention is used by governments to create and use influence.

Government intervene in trade for a range of economic, political and cultural reasons.

Governments intervene in trade for a range of reasons - to promote free trade through to meeting the obligations imposed by the WTO.

Political and cultural threats and offers.

Governments use a range of tools to increase trade - from subsidies and export financing through to trade agreements and government agencies.

Trade agreements, lobbying and cash incentives.

The best answer depends on the government we are analysing. However, governments do use a range of promotional strategies from subsidies and licencing through to embargoes and trade agreements.

Governments use a range of strategies from tariffs and quotas through to laws pertaining to local content and currency controls.

Governments use political tools like lobbying, threats, and legislative requirements.

The instruments used by governments vary from direct embargoes and restrictions to legislative requirements and subsidies.

Governments use the tools provided by the WTO, including the special provisions.

The WTO exists to regulate trade among nations.

The goals of the WTO are the promotion of free trade and open markets, whilst also assisting with trade negotiations.

The WTO goals are to support free trade, assist with negotiations to open markets, and to settle trade disputes among members.

The goals of the WTO are to promote free trade and set policy for it'smembers.

Selling Australian-made products to customers in Japan

Opening and operating its own factory in Japan

Buying a small number of shares in a Japanese company

Licensing its brand to a Japanese business

Greenfield investment

Cross-border acquisition

Exporting

Licensing

Avoiding all local taxes

Gaining access to local customers and reducing transport costs

Eliminating all competition

Escaping Australian employment laws

Australia's exports increase automatically

Australia receives an inward FDI inflow

Australia records an outward FDI investment

No FDI occurs because the company is Australian

Jobs, investment and knowledge transfer

Guaranteed higher wages for everyone

The disappearance of all local competitors

Complete control over the foreign investor