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Suggested answers: What is globalisation?


  1. Questions Answer
    The global economy is the world economy. True
    Globalisation refers to the removal of trade barriers between countries. True
    The economic term globalisation came into common use in 1990. False
    Australia is considered one of the wealthier nations in the world. True
    World War II laid the foundations for today’s global economy. True
    Trade liberalisation means that countries are increasing tariff protection. False
    World Real GDP is an acceptable measure of World Output. True
    The global economy can include production, trade, financial flows, investment and technology. True
    Globalisation has had a positive effect on both developing and developed countries. False
    The advanced economies of the world have 50% of the population and 15% of World GDP. False
    The gaps between the richest and poorest countries have decreased over the last century. False


  2. Any or all of the following:
    1. Inflation rates vary from country to country
    2. Exchange rate differences exist between counties
    3. There are variations in statistical methods for calculating asset values from country to country
    4. Government policies relating to taxation can be very different from country to country
    Inaccuracies may occur in the collection of statistical data

  3. Any, and all of the following:
    1. Voluntary export constraints
    2. Tariffs
    3. Subsidies
    4. Quotas
    5. Local content rules
    6. Tax concession, tax incentives, export assistance
    7. Embargoes
    International commodity agreements

  4. Comment on some of the following
    1. Tariff reductions increased GDP
    2. One in five jobs are now linked to exports
    3. Exporters employees received on average $14,700 per annum more than non-exporters.
    4. Australia was the world’s sixth fastest growing economy.
    5. Export volume growth was 9% in 2000-2001.
    6. Per capita ownership of computers is the second highest in the world


  5. Any appropriate answer that includes some of the material from the tutorial.

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