Australia's Major Benefits Of International Trade

Since Australia’s first free trade agreement (FTA) with New Zealand in 1983, Bilateral and Multilateral FTA’s have been a great advantage and focus in securing economic prosperity for Australia. Australia’s two-way trade in goods and services was A$616 bn in 2012. Australia has seven FTAs currently in force with New Zealand, Singapore, Thailand, US, Chile, ASEAN (with New Zealand) and Malaysia. Together, these countries account for 28% of Australia’s total trade, which displays the great benefit of bilateral FTAs to the Australian economy. Additionally, there are four bilateral FTA negotiations currently in place, two of which are substantial trading partners; China, being Australia’s largest export market (A$78.7 bn) and Japan, being Australia’s second largest export market (A$49.8 bn). The Japanese Free Trade Agreement has been negotiated, and will be a great benefit to the Australian economy, especially the agricultural sector, for example tariffs on beef

Australia’s trading links with other countries, specifically the Asia-Pacific region, has led to its advancing development in the modern world. Australia has always had strong trading links with the world and relies heavily on imports and exports. Australia Imports products such as petroleum and cars from other countries primarily China, The United States and Japan.

With the rates of Australian exports and imports increasing an amazing 22.2% in total. It has been questioned whether international trade is good for our economy. On today’s show, I will be explaining how international trade benefits Australia.

On this week’s issue of “Historians Weekly” we’re finally going to be starting up our new and anticipated series “Policies of Aboriginal Australia”. To start us off I will be looking at the policy of protectionism and why it was replaced by the policy of Assimilation.

Australia has several ties with other countries. These ties are established in several ways, one of which is through trade. The nature of trade includes exporting and importing goods and services which form trade links with partner countries. Trade comes with its advantages and disadvantages. Australia also takes part in multilateral agreements, such as APEC, to be able to strengthen trade links.

Australia has benefited from the alliance as it has helped Australia serve is economical aims. Today, the US and Australia are the two most important producers of ‘energy and also energy technologies’ (Campbell 9). In other areas of the economy, Australia has now become the fourth largest producer in coal in comparison to other countries. Through this partnership, Australia has benefited greatly as it has been a major leader in the creation of a global energy security as well as implementing strategies and practices to reduce the effects of climate change. This project has led to the creation of job opportunities for people in both Australia and America.

A free trade agreement is a set out arrangement by the governments of different countries which allows exports and imports to be done with more ease, and without the same tax rates. Three examples of free trade agreements that Australia currently holds with other nations include:

Australia imports generously a larger number of merchandise and administrations from the USA than it fares to it. As shown in source B1, exports to the US are 15,533 million AUD, compared to the 39,181 million AUD that is imported from America. Australia’s exchange deficiency with the USA has enhanced marginally since 1998, from a top of $14.2b in that year, to $12.5b in 2003. It was at its most minimal in 2011 at $10.7b, when the $A conversion standard was least against the $US. Somewhere around 2010 and 2012 Australia 's fares to the USA were worth over $16.2b every year, except they tumbled to $14.2b in 2013. The USA got 10% of Australia 's aggregate fares in 2013, down from 12% in 2010. The USA 's relative significance to Australia as a wellspring of imports has declined relentlessly in the course of recent years (down from 22% of aggregate imports in 1998

The global economy needs free trade. Countries need free trade. Trade with other countries occurs at some level in every country globally. There may be some indigenous tribes within some countries that can lay the claim that they are self-sufficient, however, there is not a single country that can say the same. Proponents of an open trading system contend that international trade results in higher levels of consumption and investment, lower prices of commodities, and a wider range of product choices for consumers (Carbaugh, 2009, p26). Free trade is necessary. How do countries decide what to import and what to export?

     International trade is defined as trade between two or more partners from different countries in the exchange of goods and services. In order to understand International trade, we need to first know and understand what trade is, which is the buying and selling of products between different countries. International Trade simply is globalization of the world and enables countries to obtain products and services from other countries effortlessly and expediently.

And with this, you get the chance to eventually increase your profits.” Occupytheory (2014, May). Advantages and Disadvantages of international trade. Retrieved from Occupytheory website

According to the definition given above and as the name implies; International Trade is the exchange or transfer of goods and services between two or more countries for each

International trade facilitates export diversification by allowing developing countries to access new markets and new materials which open up new production possibilities. International trade encourages innovation by facilitating exchange of know-how, technology and

1. A Free Trade Area (FTA) - a group of countries which remove all barriers to trade in goods.

Some advantages of free trade; Free trade occurs when there are no artificial barriers put in place by governments to restrict the flow of goods and services between trading nations. When trade barriers, such as tariffs and subsidies are put in place, they protect domestic producers from international competition, rather than create trade flows. It is also beneficial to consumers as they can gain great amount/variety of goods and services.