The figure obviously had not return to pre-crisis level. Moreover, recent commodity prices had fallen significantly which will affect Australia’s short and long term economy.
Economics – Comparing Economies By Jacob Sullivan-Hawkes Compare Australia with China i) Geographical outline and resources: Australia and China are two countries located in the southern and northern hemispheres respectively. They are both very important and major international exporters across the globe. Australian exports reached an all time high of A$29,970 million in February of 2014, this is a gain of A$120 million from the previous year. Australia’s natural resources are one of its main exports as Australia is so rich in its natural resources such as bauxite, coal, copper, tin, gold, iron ore, silver, uranium, tungsten, nickel, lead, zinc, diamonds, mineral sands, natural gas and petroleum.
INTRODUCTION: This report will show an overview of the current state of the Australian economy and its management by the Federal government through examining economic indicators such as economic growth (GDP), unemployment, inflation and trade. In this report you will find current and past trends and target values for these
(http://www.wisegeek.com/what-is-protectionism.htm) Globalisation have changed Australia's trade patterns since 1960s. Australia decline in the importance of rural exports, increasing in the importance of mining, services and manufacturing. For example,wool has fallen from 60% to 2.3% of exports in 2003 and 2004 due to the rising quantities of others export. Also, the amount of services exported by Australia has significantly rising such as personal travel services, education related, passenger transportation services, business, professional and technical services.
Many of Australia’s import partners consist of some of the largest traders in the world, such as China and the United States. Trade in Australia is considered very important and beneficial to the economy, thus making it a smart move to expand business to Australia.
INTRODUCTION: Australians role in the Asia Pacific region is an important economic growth in Australia. The common trade began in 1989, and is creating a seamless regional economy. The purpose of trade is to ultimately provide the state with a unique set of opportunities and creates a greater understanding of
As a nation with global interests, Australia deals with many countries in many regions and one of
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
Table 2: Annual Growth in Exports, by Sector, 1985-86 to 1995-96. Source: Australian Bureau of Statistics, 5368.0 Globalisation and Financial Markets The spread of globalisation especially since 1990 has introduced many new elements into the financial markets and what determines the value of a nation 's exchange rate. This does not just apply to Australia, but as we saw in the later half of the 1990 's, to many other nations in the world. Firstly, trade in goods and services makes up a much smaller proportion of the demand and supply for currency. In the world economy, payments for international trade only account for about 1% of foreign exchange transactions. The total foreign exchange requirements for exporting and importing of goods and services in Australia is less than 3% of the total use of the foreign exchange turnover in Australian dollars (Reserve Bank Bulletin, Table F7 and Australian National Accounts, 5206.0). The main purpose for foreign exchange trading is international financial transfers of
The terms of trade even has the potential to enter into a surplus if the conditions improve further. The improvement in the terms of trade shows that Australia’s exports are strong and that domestic businesses are able to compete with those from overseas.
a) The Australian government has many objectives in trading with Japan; external stability, sustainable economic growth, etc. Australia may gain external stability as in recent; the Japanese economy had been facing challenges over its energy policy, as well as other external risks. Australia is a major beneficiary of that issue as the Japanese government is encouraging firms to help assure energy and commodity supplies through increased investment in overseas natural resources. A sustainable economic growth may also be gained through trading with Japan.
Australia’s Position in the global exporting market is only 22nd, which is far from its leading top trade partners that fit in the Top 5. Also, Australia’s global ranking in the global importing market is 18th, which is under India whose economic status is much lower than Australia. A second disadvantage that Trading brings to Australia is the competition between local small businesses and Trans National Corporations (TNC). Local businesses are closing down and being taken over because of the increase in the entrance of TNCs in Australia. Large Fast food chain Corporations like McDonalds, put local fish and chips shops under pressure. Another disadvantage with Australia being part of International trading is that most of the products that Australia export are agricultural goods that has high tariffs, making it costly for Australia to be able to export.
Australia's iron ore are very important to Australia's economy. In a single year Australia's iron ore mines produce more than 660 million tons of the ore, that is about 75 billion dollars in export revenue. This makes iron ore one of the largest exports in Australia. Not only do iron ore exports make money in Australia the iron ore industry also pays more than 10 billion dollars in taxes and royalties each year to the Australian government
Research summary 1) Economic overview There are three major economic factors that have combined contribution to FMG’s growth over the past 5 years, including the strong AUD , the amazing export feature due to the Chinese boom which drives up the commodity price and the interest rate decision by RBA. Australia dollar has appeared strong for the past 5 years and maintained at $6-$6.8 level for AUD/CNY at most time. It promised a high level of foreign income for Australia exporter. In 2009, China demanded almost 60% of the world’s iron ore to produce 47% of world’s steel production. It contributes the most to the price rocket from $31.78 to $180.6 US cents/mts in 5 years time. In addition, Australia borrowing cost remains high over the past few years which may alter the finance decisions of FMG.
72% of Australia’s two-way trade is within the APEC countries. Like the G20, this trade relationship is quite significant. Australia’s single top import is personal travel services, however overall most of what Australia imports is petroleum products and motor vehicles. It’s appetite for refined petroleum increased by 12% over the past 5 years. Australia’s top exports are its natural resources, iron ores, coal and natural gas. (Australian Government: Department of Foreign Affairs and Trade, 2014)