Application Exercise 8k: True or False – Australia and International Trade
Statement | T | F |
International transactions can increase non-material living standards | T |
|
Australian exports are foreign-made goods and services that are purchased by Australians |
| F |
The purchase of imports enhances living standards on the whole | T |
|
International trade reduces domestic competition |
| F |
Exports are a component of aggregate demand and each dollar spent results in an increase in national income and production | T |
|
Trade will most likely prevent nations from specialising in those areas where they have a competitive advantage |
| F |
International trade allows businesses in the world to sell to a larger market | T |
|
Australian organisations rely on foreign savings or foreign capital to fund investment | T |
|
Increased trade in goods and services prevents superannuation funds from diversifying |
| F |
International trade creates additional incentives for local businesses to become more productive | T |
|