What is Portfolio investment?

Short term investments in shares, loans or securities.

Looking at Australia's composition of trade, what sectors mainly make up Australia's exports?

Minerals & Metals, Agriculture & Services

What is a disadvantage of Direct Investment?

Business loses some control and ownership over resources

Australia is a net capital importer. What does this mean?

We rely on foreign investment into Aust to cover low savings

What is Direct Investment?

Establishment of new co. or purchase min.10% existing co.

Which of the following may cause an appreciation of the Australian dollar?

Oz interest rates increase relative to O/S interest rates

What is the composition of trade for Australia's Imports?

Consumer goods, intermediate goods and capital goods.

studbud

Yr 12 Economics Australia's Trade & Financial Flows Introduction

10 termsStudBud Administration317 plays

HSC Economics Intro to Australia's trade & financial flows

Flashcards10 cardsFPractice quizPHost liveL

Questions 10

Answers

1
Why has the direction of Australia's trade moved from UK/Europe?
Both of the above
EU trade barriers have discouraged our Agricultural exports
We are regionally linked to fast growing Asian Economies
2
Which of the following trends are true for Australia's composition of trade?
The importance of agricultural exports has declined.
Mining exports make up a much larger proportion of exports.
All of the above
Manufacturing exports have declined
3
What is Portfolio investment?
Short term investments in shares, loans or securities.
The purchase of a mix of established businesses
Investment which plays a role in the management of business
The purchase of portfolios
4
Looking at Australia's composition of trade, what sectors mainly make up Australia's exports?
Mining, Heavy Manufacturing & Agriculture
Minerals & Metals, Agriculture & Services
Services, Manufacturing & Mining
Intermediate goods, capital goods & consumer goods
5
What is a disadvantage of Direct Investment?
It is speculative.
Business loses some control and ownership over resources
Innovative ideas are stolen & sent overseas
It creates employment
6
Australia is a net capital importer. What does this mean?
We import a lot of capital nets
We rely on foreign investment into Aust to cover low savings
We don't save enough money to cover our investment needs
7
What is Direct Investment?
Short term investment in in loans & securities
Establishment of new co. or purchase min.10% existing co.
Invest in established business of less than 10%
8
Why is Portfolio investment seen as counterproductive?
It does not create jobs or technology transfer
All of the above
It is mainly speculative
It is does not bring in new skills or new technology
9
Which of the following may cause an appreciation of the Australian dollar?
Australian investors purchase a foreign owned firm
Imports into Australia increase
World commodity prices decrease
Oz interest rates increase relative to O/S interest rates
10
What is the composition of trade for Australia's Imports?
Intermediate goods, consumer goods and raw materials
Mining, heavy machinery and capital goods
Consumer goods, intermediate goods and capital goods.
Consumer goods, Services and banking.

Yr 12 Economics Australia's Trade & Financial Flows Introduction Flashcards | StudBud