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TRADE - Coggle Diagram
TRADE
why is international trade important?
econ growth & SOL would decline
w/out demand, domestic production, employment, income, business profitability, SOL would decline
gov gets funds for sale of minerals, less international demand & revenue
tourism, overseas students, multinational corporations
aus relies on import of goods
how does trade impact gov policy?
trade policy:
affects flow of g/s between countries, may be removing barriers
protectionism:
gov wants less international trade and creates policies that act as barriers
trade liberalisation:
gov can remove barriers by changing policy to liberalise trade
trade restrictions
tarrifs:
restrict imports by increasing price to make less attractive to consumers
quotas:
limits set on import volumes
subsidies:
financial incentives given to businesses to encourage exporting
why do countries trade?
advantages
better quality
cheaper
more employment
more efficiency & innovation
growth & profit
less competition, more customers
more incentive to innovate
international relationships
disadvantages
shipping customs & duties
language barriers
domestic businesses suffer
pollution and more transport costs
international monopolies
political dependence
C02 emissions
trade flows
open economy:
countries allow import and exports with international partners
free trade:
trade between specific countries without barriers