Australia Is A Small Open Economy

The Chinese and Australia economies have many similarities and differences, including the size of the economies, growth rates, unemployment, inequality, standard of living, environmental issues and the roles the different governments have in influencing and modifying these factors of the economy.

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.

Australia and China adopt very different economic systems in order to cater the best for their society. However, Australia's economic system is more successful than China's and, due to the writer's right-wing value system, will be measured in terms of environmental efficiency, labour and entrepreneurial resource efficiency and the standard of living.

Since the reform and opening up, the economy of China grows significantly, as an emerging economy, China's economy has made tremendous contributions to the global economy, and Renminbi has become one of the most important currency in the world. According to the survey conducted by China National Bureau of Statistics found that from 1979 to 2012, China has attained an annual average growth rate of 9.8% for its national economy, while the annual average growth of the world economy is only 2.8 % during the same period. In past 30 years, China's GDP surpassed Japan’s, China became the world 's second largest economy, in addition, the huge total volume of trade makes China become the world 's largest trading nation. The contribution of China’s

Due to the isolation of Australia geographically, surrounding countries and their economies are extremely important to Australia for instances such as trade, influence and partnerships. Indonesia is one of Australia’s closest neighbours and hence there would be some obvious similarities as well as differences due to the economic status of the country’s stage of development and the role of the Government.

China is one of the biggest countries along with Thailand and Japan who make goods for Australia. Being Australia’s third largest merchandise trading partner and seventh largest service export market in 2003, China might significantly affect the Australian economy through any changes made to its trade policies. A more liberal Chinese trade policy could increase Australia’s income in part through greater market access for its exports. Of every hundred dollars of national

Examine the similarities and differences between the Australian and Chinese economies Australia and China have similarities and differences in their economy. Therefore, examination is made between these two nations. Similarities and differences will be identified by GDP, GDP per capital, unemployment levels, standard of living, environmental issue, inequality and role of government. Australia and China's economy size has a vast difference. China's has a population of 1 billion people ranking (2nd) where Australia has a population of 23 million people ranking (12th).

This essay analyses the Australian-China bilateral relationship since 1945 and in particular its political significance to Australia. Many global factors have influenced this relationship, including the advent of the Cold War, the Korean War, the Vietnam War and the collapse of the Soviet bloc European nations. In addition, internal political changes in Australia and China have both affected and been affected by the global changes. It will be analysed that Australia’s bilateral relationship with China has always had a sharp political edge but that approaching the new millenium economics and trade considerations are shaping Australias and for that matter Chinese politics.

Australia and China both adopt different economic system in exchange for a substantial economic growth. China is in the process of a developing nation employing a command economy, which means the decisions on production and investment is decided upon the government. In comparison, Australia is a highly developed nation with a mixed market economy, meaning that the economy has a certain degree of planning involving the government, but the private sector dictates most of the economic decisions.

China and Australia are very different countries in terms of religion, culture, language, and system of government. However, there are some similarities in regards to the economic conditions of both countries. These economic conditions can be broken down into 6 sub-topics. First, in regards to economic growth, Australia and China have been remarkably resilient during times of economic downturn.

Economic development refers to the sustained actions of communities, federal, state, and local governments that improve our standard of living through the creation of jobs, new technologies, economic health, and the creation of an overall better quality of life. The comparison between the Australian economy and the Chinese economy provide a detailed and comprehensive view of both nations. China is of political, cultural and economic strategic importance to Australia. Economic growth, employment/unemployment, environmental sustainability, the role of government (in health care, education and welfare), and quality of life determine the economic development of a nation.

Asia Pacific Economic Cooperation (APEC) is the pre-eminent economic rally in Australia’s region. APEC’s goal is to drive an extensive trade and investment liberalisation and facilitation agenda. It is focused on structural reform as a means of raising competitiveness and the efficiency of trade and investment flows. It has helped Australia with building and strengthening ties with other countries such as Brunei, Singapore, Philippines and other countries in the region. In 2009, 70% of Australia’s trade is with APEC countries.

Electricity sector liberalization in Australia occurred within the wider context of the efforts for improving the competitiveness of the Australian economy, starting with financial deregulation over the 1970s and 1980s. In particular, the floating of the exchange rate subjected Australian exports, comprised mainly of agricultural and mining goods, to global competitive forces, whilst high tariff walls protected manufactured goods from competition. The inward focus of domestic industry led to declining standards of living, unemployment, inflation, and balance of payments deficits (Hodgeetal.,2004). This led the Hawke-Keating Labor government to setup an independent Committee of Inquiry into National Competition Policy for Australia in 1992, also known as the Hilmer Report (Hilmer,1993).

This means that without Australia buying these goods and services there would be a big hit on their economy. China also relies on Australia in the form of international students. In 2015 26% of Chinese international students were enrolled at Australian educational institutions, this also included schools. China is also the worlds biggest exporter of textiles and clothing. In 2016 Australia imported 59.89% of its clothing from China. This means that Australia is purchasing a significant amount of China’s

The second key national interest of Australia is the economy. Australia’s capital, jobs, standards of living, technological innovations and social advances rely substantially on exports and commodity values within Southeast Asia and the Pacific (Department of Foreign Affairs and Trade 2016a). The stability of South East Asia and the Oceania