International Economics

1. A high form of integration where member nations share policies and often a currency.
4. A deliberate downward adjustment of a fixed exchange rate.
6. Sudden currency changes that a floating system helps absorb.
7. An exchange rate determined by demand and supply for a currency.
10. When one country can produce more output from the same resources than another.
11. The reduction or removal of trade barriers.
14. A system where the government sets and maintains the value of the currency.
16. Records investment flows and foreign asset transactions.
19. Advantage gained through innovation, productivity or strategy (Porter).
22. A fall in the value of a currency.
23. A country’s natural resources, labour and capital that influence what it can trade.
25. The amount Australians owe to overseas lenders.
26. The composition and direction of Australia’s exports and imports over time.
29. The ability to meet international financial obligations without excessive foreign debt.
30. A deliberate upward adjustment of a fixed exchange rate.

2. When one country can produce a good at a lower opportunity cost than another.
3. When a central bank intervenes to influence the value of a currency.
5. Model showing income flows in an open economy with injections and leakages.
8. Full employment and low inflation within the economy.
9. The value of exports minus imports of goods.
12. Increasing cooperation between countries through trade agreements.
13. When debits in the current account exceed credits.
15. An increase in the value of a currency.
17. Record of all financial transactions between a country and the world.
18. Trade without tariffs, quotas, or subsidies.
20. The value of one currency in terms of another.
21. Overseas funds invested into Australian assets or businesses.
24. An economy that engages in international trade and financial flows.
27. Part of the BOP recording trade, income and transfers.
28. The ratio of export prices to import prices.