Essay on Australia's Trade

Free trade is the unrestricted purchase and sale of goods and services between countries without the imposition of protection such as tariffs and quotas. This enables economies to focus on their core competitive advantage(s), thereby maximizing economic output and fostering income growth for their citizens. Australian exports rose from $66.6 billion in 1990-91 to $300.4 billion in 2012-13, with an average growth in export volumes of 4.6 per cent per annum since 1990-91. This is reflective of Australia’s proactive actions to phase out protection since the 1970s. The major effects of domestic and global free trade and protection policies

International trade is the exchange of capital, goods, and services across international borders or territories. Trade enhances the quality of life and aids the Canadian economy and its people. International trade offers a variety of advantages and disadvantages. First off, trade creates jobs, and it's statistically proven that 1 in 5 jobs depend on trading, either directly or indirectly. Yet this is simply an accounting of how much spending in the economy is accounted for by exports. Taken from another perspective, this vastly understates how dependent Canada is on trade. The structure and the organizations of the entire economy are crucially dependent on trade and integration with regional and global trading networks. Many of the benefits

Australia became a commonwealth of the British Empire in 1901. It was able to take advantage of its natural resources to rapidly develop its agricultural and manufacturing industries and to make a major contribution to the British effort in World Wars I and II. Now, Australia has a prosperous Western-style capitalist economy, with a per capita GDP at the level of the four dominant West European economies. Rich in natural resources, Australia is a major exporter of agricultural products, minerals, metals, and fossil fuels.

Although Australia remains geographically isolated from the world, international trade still remains a main factor that allows Australia’s economy to prosper. Australia’s long history of trade has created tight links and connections with other nations. Being a member of many worldwide organisations, Australia has produced many free trade agreements with countries around the world. However, recently Australia has seen a change in the composition and direction of its trade and has developed a strong trade link with the Asia-Pacific Region.

The exchange of goods and services between international borders or territories is known as international trade. It allows countries to use excess resources, if the resource can be produced more efficiently then it can be sold cheaply. If a country lacks access to certain resources they can obtain that resource through the aid of international trade.

Another prospect is Australia’s mineral resources. Australia is predicted to be holding much of iron ore, coal etc. This means that we are on top of vast resources that can be sold to other countries. Japan would benefit as it purchases a large amount of our coal and iron ore. This advantage could also be used to lever a FTA with the Japanese. The infinite capabilities of Japanese technology would allow Australia to keep up with the world in many areas. Of course, most of these are technologically related.

Make appropriate conclusions about the overall impact of globalisation on the Australian business community (positive and/or negative

Many products we use today are made in China. Trade between Australia and China has heightened in the last couple of years. China has one of the world’s largest economies. It has an increasing role in shaping the world economy, accounting for a third of the increase in the world’s gross domestic product and imports for the period 2000 to 2003 (The Economist 2004). It is also home to a population of 1.3 billion inhabitants, consuming a variety of goods from food items to luxury commodities, toys, clothing, gifts, most car parts and many more things Australia benefits from. For non-agricultural goods, Australian import tariffs are generally low. The most notable exceptions are on motor vehicles and textiles, clothing and footwear imports.

Globalisation is not new. Australia has been involved in trade, investment, financial flows, technology transfers and the migration of labour since its foundation as a colony. What has changed is the size, direction and influence of these transfers, especially since 1980. There are a number of factors that have aided this transformation. They include:

An additional advantage of aid is that it provides Australia with strengthened diplomatic, economic and political ties to the recipient countries. As Australia is a prominent aid donor in the Asia-Pacific region, it has strong diplomatic ties with the developing countries of that area, and can therefore receive the benefits from such a relationship with these countries. An example of such a relationship would be the free trade agreements Australia signed with Singapore in 2003 and Thailand in 2005, Australia diplomatic relationship with these nations played a large role in the securing of these two agreements. Australia can also benefit from such a good relationship politically as the recipient country of Australian aid can support Australia’s politics. A strong relationship with a recipient nation would also allow Australia to form economic bonds with the developing country, such as the agreement of tied aid money – were the recipient must spend some of the aid money provided by Australia on Australia’s goods and services, therefore strengthening Australia’s economy. Hence, creating and maintaining strong relationships with recipient nations of Australian aid is advantages as it

Australian-Indonesian relations are the foreign relations between the two countries, whether economically, politically, legally or socially. Australian-Indonesian relations involve an interaction in foreign policies between the two nations (Wolfsohn, 1951, p. 68). As long as Indonesia is Australia 's closest and largest neighbor, they are bound to have great international relations. These relations began as early as the 17th century and had only become enhanced with time (Daly, 2003, p. 397). The relationship has been defined by a conjoint growth trade of up to $14 between the years 2011-2012 which reports an increase from the previous economic year (Mark, 2012, p.402). These countries are members of various trade deals such as the ASEAN Regional Forum in addition to having close ties with education, defense, and leadership. Australia 's relationship with Indonesia is crucial, and lack of such could severely bruise the economy, and hence they need to keep united by ensuring the use of widespread media with beneficial input. Australia interacts with Indonesia in a way such as sporting activity, tourism, education, economic policies, youth exchange programs, cultures and above all their diplomacy (Okamoto, 2010, p.241).

Given the fact that China is now Australia 's largest two-way trading partner, should Australia -- particularly in view of the possible impact of China-ASEAN free-trade agreement on Australia 's trade with China – fast track its negotiations with China for a free trade agreement (FTA)? Write a policy report for the Australian Senate.

Australia’s political view has been recognized by other countries as a strong market leader and a valuable country to have free trade agreements with. All Australians can see that this is a huge benefit to the Australian economy. An increase in trade agreements means more jobs and security for the

Australia’s main trading partners are China, Japan, the United States, Republic of Korea and Singapore. Nearly half of Australia’s trade activity in terms of imports and exports are with these 5 countries alone. Particularly with the recent growth of the Chinese economy, Australia’s chief trading partner, the country has seen growth in its exports. However very recently the growth of the Chinese economy has been slowing which is a risk to Australian exports.

Global Trade is one of an essential activity that undertakes between two nations in a modern world (Buckley & Casson, 2016). It can be accessed not only by a wide range of product or service market but also accompanies competition through competitive advantage even though it is between countries like New Zealand and Australia. The international trade in these countries accompanies a total of 20-30% of GDP. However, the future growth rate of Australia and New Zealand is strong and opts to increase economic nationalism through the continuous balancing of policies, globalization and technology.