Free Trade

Which of the following statements describes Australia free trade and protection policy history?

• Australia has transitioned from a highly protected economy to an economy with relatively

  low trade barriers.

• Australia has transitioned from an open economy to a highly protected economy.

• Australia’s policy regarding free trade and protection have not changed since 1973.

• Australia has transitioned from a highly protected economy to an economy with no trade

  barriers.

Which of the following describes a reason the Australian government would reduce protection?

• To ensure Australia is self sufficient in the production of all goods.

• To protect Australia jobs in inefficient industries.

• To increase cyclical unemployment in Australian economy.

• To encourage resource allocation to more efficient industries.

Complete the sentence: Foreign investment is the transfer of money for the purpose of...

• borrowing and lending money and buying and selling assets.

• purchasing businesses.

• making short-term financial gain.

• increasing Australia's global influence.

Which of the following distinguishes foreign direct investment and portfolio investment?

• Foreign direct investment is hands-on, whilst portfolio is passive

• FDI is long-term, whilst portfolio is short term

• FDI gives investors more control

• All of the above

Complete the sentence: When Australia receives money from foreigners, we accumulate...

• foreign liabilities

• foreign assets

• debt

• equity

Foreign equity purchases include which of the following?

• land

• commodities

• business

• all of the above

An Australian business borrows $10 000 from a American bank to purchase a plot of land in the UK. Does the initial transaction accrue foreign debt or foreign equity?

• foreign debt

• foreign equity

• both

• neither

Which of the following describes a reason the Australian government would reduce protection?

• To ensure Australia is self sufficient in the production of all goods.

• To protect Australia jobs in inefficient industries.

• To increase cyclical unemployment in Australian economy.

• To encourage resource allocation to more efficient industries.

Which of the following accurately describes Australia’s current government polices towards

domestic industries?

• The Australian government advocates for free trade and does not provide any assistance to

  domestic industries.

• The Australian government only provides subsidies to domestic industries.

• The Australian government provides various protection measures to domestic industries,

  including, tariffs, tax concession and handouts.

• The Australian government provides anti-dumping measures to protect domestic industries.

Which of the following statements describes Australia free trade and protection policy history?

• Australia has transitioned from a highly protected economy to an economy with relatively

  low trade barriers.

• Australia has transitioned from an open economy to a highly protected economy.

• Australia’s policy regarding free trade and protection have not changed since 1973.

• Australia has transitioned from a highly protected economy to an economy with no trade

  barriers.