ECO TRENDS - Export and Import Composition

Vocabulary flashcards covering key concepts related to Australia's economy, focusing on exports, imports, balance of payments, and related economic indicators.

Composition of Exports

The breakdown of Australia's exports by sector, including rural (11.3%), mining (51.1%), manufacturing (17.1%), and services (20.5%).

Composition of Imports

The breakdown of Australia's imports by category, including consumption goods (23.4%), intermediate goods (30.9%), capital goods (18.1%), and services (27.6%).

Foreign Investment in Australia

Includes direct investment, portfolio investment, and other types, totaling $5,026,720 million.

Balance of Payments

A summary of all transactions made between entities in one country and the rest of the world, including goods, services, income, and current accounts.

Current Account Surplus

Occurs when the value of a country's exports exceeds the value of its imports.

Savings Ratio

The proportion of disposable income that is saved, indicating economic health; a savings ratio below 0 means borrowing from abroad is necessary.

Consumer Inflation

The rate at which the general level of prices for goods and services rises, leading to a decrease in purchasing power.

Unit Labour Costs

The average cost of labour per unit of output, indicative of productivity and wage trends.

Exchange Rate

The value of one currency for the purpose of conversion to another, important for international trade.

Terms of Trade (TOT)

The ratio of export prices to import prices, reflecting the relative cost of trade between nations.

Net Foreign Liabilities

The total liabilities of a country to the rest of the world, including net foreign debt and equity.

Globalisation

The process by which businesses develop international influence or operate on an international scale, leading to increased trade and economic integration.

Capital Account

A component of the balance of payments that records the net change in ownership of national assets.

Financial Flows

Movement of money for the purpose of investment, trade, or business production, including both direct and portfolio investments.

Comparative Advantage

The ability of a country to produce a good at a lower opportunity cost than another country, leading to more efficient trade.

Service Sector

The part of the economy that provides services rather than goods, accounting for a significant percentage of exports and imports.