Global Economy and Australia Trade Flashcards

A comprehensive set of vocabulary flashcards covering the Global Economy, Vietnam Case Study, and Australia's Trade and Financial Flows based on the lecture notes.

FDI Inflows (2023)

Totalled $36\text{ Bn}$ and accounted for $75\text{\%}$ of exports.

Export Value Growth (1990–2022)

Increased from $2.3\text{bn}$ in 1990 to $384\text{bn}$ in 2022.

Vietnam Corporate Tax Rate

Fixed at $10\text{\%}$.

Vietnam minimum wage

$\$0.94$ per hour.

Developing Economies FDI (2024)

$30\text{\%}$ of Foreign Direct Investments were funneled towards developing economies in 2024.

Exxon Mobil in Guyana

An example of FDI leading to $43.4\text{\%}$ economic growth (EG) in 2024.

Average Tariff Levels

Decreased from $36\text{\%}$ in the late 1960s to $0.5\text{\%}$ currently.

Australian Tariff Levels

Currently less than $1\text{\%}$.

Local Content Rule (Free to Air TV)

Requires $55\text{\%}$ local content between 6am and midnight.

US Tariff on Chinese EVs

A $100\text{\%}$ tariff imposed on Chinese electric vehicle exports.

Exports as a percentage of GDP (Global)

Increased from $7\text{\%}$ in the late 1980s to $94\text{\%}$ in 2022.

GWP (Gross World Product)

Valued at $117\text{ Trillion}$.

Global Trade Growth

Rose from $\$4\text{T}$ in 1990 to $\$33\text{T}$ in 2024.

Global FDI (current vs. 2000)

Valued at $\$49\text{ trillion}$, which is $7\times$ its level in 2000.

CERTA (Closer Economic Relations Trade Agreement)

Results in an $8\text{\%}$ increase in trade annually and prohibits tariffs and restrictions.

RCEP (Regional Comprehensive Economic Partnership)

The largest FTA, representing $30\text{\%}$ of GWP, covering $71\text{\%}$ of Australian exports, and removing $91\text{\%}$ of tariffs.

Hydrogen Headstart

A protectionist measure worth $\$2\text{bn}$ in the 24-25 Budget.

Absolute Poverty Reduction

Dropped from $44\text{\%}$ in 1981 to around $10\text{\%}$ currently due to globalisation.

China Average Economic Growth (1991–2014)

Averaged $10\text{\%}$ annually.

FDI flows to bottom 44 countries

These countries only receive $2.4\text{\%}$ of global FDI flows.

Covid-19 Supply Chain Impact

$85\text{\%}$ of global supply chains were impacted by the pandemic.

Vietnam HDI Growth

Increased from $0.493$ in 1990 to $0.766$ currently.

US-Vietnam Bilateral FTA

Reduced average tariffs from $40\text{\%}$ to $3\text{\%}$.

Vietnam Private Sector Employment

Employs $85\text{\%}$ of the workforce.

Vietnam GNI per capita PPP

$\$14,000\text{ USD}$ per year, having risen from $\$1,100$ in 1990.

Vietnam GINI Coefficient

$0.361$, indicating moderate income inequality.

ODA support for Vietnam Education

The OECD has provided $\$600\text{ million}$ annually since 2000.

Vietnam Literacy Rate

Increased from $84\text{\%}$ in 1979 to over $96\text{\%}–99\text{\%}$ by 2022.

Vietnam Healthcare Accessibility

Covers $89\text{\%}$ of the population.

Vietnam Tobacco Tax

Based on WHO advice, it accounts for $36\text{\%}$ of the retail price to reduce demerit good consumption.

Vietnam Infant Mortality

Dropped from $3.3\text{\%}$ in 1993 to a forecasted $1.4\text{\%}$ in 2026.

Vietnam Unemployment Rate

Stands at $2.2\text{\%}$.

Vietnam Water Quality Impact

Poor water quality is estimated to reduce GDP by $3.5\text{\%}$ in the next decade.

Vietnam Urban Population Trend

Currently $40\text{\%}$ of total population and expected to reach nearly $60\text{\%}$ by 2050.

Vietnam Plastic Waste Collection

Only $15\text{\%}$ of the $3.7\text{ million}$ tonnes produced annually is collected.

Vietnam CO2 Emissions

Experienced over a $400\text{\%}$ increase since 2000.

Australian Exports to China

Accounts for $35\text{\%}$ of exports, up from $18\text{\%}$ in 2005.

Australia's Global Economic Standing

Ranked approximately $13\text{th}$ globally, contributing $2\text{\%}$ of GWP.

Foreign Ownership in Australian Mining

Stands at $80\text{\%}$, representing significant investment inflows.

Australian Annual Foreign Investment

Around $15\text{\%}$ of total investment, or $\$45\text{bn}$, comes from foreign sources.

Floating of the AUD

The exchange rate was floated in 1983.

AUD Forex Speculation

$95\text{\%}$ of AUD foreign exchange transactions are speculative.

Mining Boom Appreciation (2011)

The exchange rate reached $A\$1 = US\$1.10$; Terms of Trade was $118$; Cash rate was $4.75\text{\%}$.

Mining Boom BOGS/CAD Effects (2011)

BOGS improved from $1.2\text{\%}$ to $2.9\text{\%}$ of GDP; CAD improved from $-2.8\text{\%}$ to $-2.3\text{\%}$.

COVID-19 Depreciation (2020)

AUD fell to US55\text{\textcent} in March 2020 as the cash rate was reduced to $0.10\text{\%}$.

COVID-19 Export/Import Effects

Agricultural exports increased by $\$50\text{bn}$, while technology imports fell by $15\text{\%}$.

Household Savings (2021)

Reached $24\text{\%}$ during the pandemic.

Balance of Payments Record (2021)

Record BOGS surplus of $5.8\text{\%}$ of GDP and a Current Account Surplus of $2.8\text{\%}$.

Australian Terms of Trade (2020–2022)

Increased from a record low of $89$ in 2020 to a record high of $144$ in 2022.

Net Foreign Liabilities

Currently $32\text{\%}$ of GDP, the lowest since the 1980s.

Australian Economic Growth (1991–2019)

$28\text{ years}$ of continuous growth averaging $2.9\text{\%}$.

COVID-19 Economic Contraction

Economic growth was $-0.2\text{\%}$ for 2020, with a $-7\text{\%}$ drop in the June quarter.

Australia Unemployment during COVID

Reached a peak of $7.5\text{\%}$.

NAIRU (RBA Estimate)

The Non-Accelerating Inflation Rate of Unemployment is estimated at $4\text{\%}$.

Youth Unemployment Statistics

Ages 15-24 make up $14\text{\%}$ of the workforce but $55\text{\%}$ of unemployment.

Indigenous Employment (Aged 24-65)

$10\text{\%}$ Unemployment rate and $56\text{\%}$ employment rate.

Australia Inflation Peak

Reached $7.8\text{\%}$ in the December quarter of 2022; currently at $4.2\text{\%}$.

Relative Poverty in Australia

$13\text{\%}$ of Australians are living in relative poverty.

Australian Income Distribution (Quintiles)

The fifth (highest) quintile has $41\text{\%}$ of income, while the first (lowest) has $8\text{\%}$.

Australian Wealth Distribution

The fifth quintile holds $63\text{\%}$ of wealth, while the first quintile holds less than $1\text{\%}$.

Australian Gini Coefficient

Currently $0.32$, but would be $0.51$ without government policy.

Income Inequality Reduction Measures

Progressive tax reduces inequality by $27\text{\%}$; social welfare reduces it by $10\text{\%}$.

Gender Income Gap (Australia)

Women earn $86\text{\%}$ of what men do ($\$1826$ vs $\$2072$ average weekly).

Education and Income Correlation

One year of additional education increases income by $13\text{\%}$.

Australian Emissions Targets

$43\text{\%}$ reduction by 2030 (from 2005 levels) and Net Zero by 2050.

Renewable Energy Target

Aiming for $82\text{\%}$ renewable energy by 2030.

Solar Sunshot Program (2024)

A $\$1\text{bn}$ program focused on solar technology.

Montreal Protocol (1989)

Eliminated $98\text{\%}$ of ozone-depleting substances between 1987 and 2014.

Paris Agreement (2014)

Signed by 170 countries to keep global warming below $2\text{ degrees}$.

Fiscal Stimulus during COVID

Totalled $\$289\text{bn}$.

2025-26 Budget Deficit forecast

$\$-35.7\text{bn}$ deficit, representing a contractionary outlook compared to the previous $\$-42\text{bn}$.

Fuel Excise Cuts

$\$2.9\text{ bn}$ in cuts reducing prices by $32\text{c/L}$.

Capital Gains Tax Discount Change

Discount for assets held $12+$ months reduces from $50\text{\%}$ to $30\text{\%}$.

Cash Rate Trends (2021–2023)

$0.1\text{\%}$ in 2021, rose to $4\text{\%}$ in 2023, and currently at $4.35\text{\%}$.

Term Funding Facility (TFF)

Implemented in March 2020 as part of monetary policy.

National Competition Policy (1995)

A microeconomic reform resulting in the ACCC issuing $\$109\text{m}$ in penalties in 23-24.

Labour Market Contracts (Percentages)

Common law ($40\text{\%}$), Enterprise Agreement ($34\text{\%}$), Award ($23\text{\%}$).

Productivity Growth Trends

$2.1\text{\%}$ average in the 1990s, falling to $1.2\text{\%}$ over the two decades leading to 2023.

CEO vs Average Wage Growth (2024)

CEO incomes grew by $14\text{\%}$, more than $3\times$ the average.

Paid Parental Leave (PPL) Expansion

Increasing from $20\text{ weeks}$ in 2023 to $26\text{ weeks}$ in 2026.