COMPETITIVENESS AND OPENNESS GLOSSARY

Direct investment

Is when a foreign investor has an equity interest of 10% or more in an Australian enterprise, and so has influence over its operations.

Foreign ownership of Australian enterprise

Total foreign liabilities and equity as a proportion of total listed and unlisted Australian enterprises, excluding unlisted equity of national public non-financial corporations, state and local public non-financial corporations and central bank.

Gross domestic product (GDP)

Gross domestic product (GDP) is the total market value of goods and services produced in Australia within a given period after deducting the cost of goods and services used up in the process of production but before deducting allowances for the consumption of fixed capital. It is defined 'at market prices'. It is equivalent to gross national expenditure plus exports of goods and services less imports of goods and services.

Imports

Commodities and other goods or services purchased by residents from non-residents.

Other investment

Foreign investment transactions that are not included as direct or portfolio investment, such as trade credits.

Portfolio investment

Refers to equity and debt transactions which, unlike direct investment, do not offer the investor any influence over the operation of the enterprise.

Ratio of imports to GDP

The ratio of goods and services debits to GDP.

Real unit labour costs

The pace of real wage rises compared with the pace of productivity improvement.

Trade weighted index (TWI)

The TWI is an indicator of movements in the average value of the Australian dollar. The TWI is calculated by the Reserve Bank of Australia as a geometric average of a basket of currencies that are representative of Australia's trading patterns. The currencies included in the calculation of the TWI make up at least 90% of total merchandise trade with Australia.