Australia's Pattern of Trade Flashcards
What is Australia’s rank in world exports? Why is it a relatively low exporter?
19th. Australia is an island continent, relatively isolated from the rest of the world.
How is trade intensity measured?
((X+M)/GDP) x 100
How does Australia’s trade intensity compare with other countries?
Compared with other countries, Australia’s trade intensity is relatively low. Australia is hindered by more natural barriers such as high transport costs as a result of its geographic location.
Describe the major changes in the composition of Australia’s trade
A dramatic decline in rural exports
A significant increase in resource exports
A relative decline in manufacturing exports
The increasing importance of services exports
Why have resource exports increased in importance?
Rapid growth of China and other Asian economies resulting in a major resources boom in Australia from 2001-12, boosting the demand for resources such as iron ore, coal, and natural gas.
List Australia’s top 5 exports and imports
Exports: iron ore, coal, natural gas, education and gold
Imports: Personal travel, refined petroleum, passenger motor vehicles, telecom equipment and computers
Why does Australia import mainly manufactured goods?
Because Australia is heavily dependent on the overseas sector for the capital equipment and intermediate goods
Describe the pattern in Australia’s direction of trade
China is the most important trading partner to Australia for both exports and imports. China, Japan, United States and Korea account for over 50% of Australia’s trade. Australia’s direction of trade has shifted from Europe to the Pacific-Asian region.
Why is Asia more important to Australia than Europe in terms of trade?
The Asia-Pacific region has the advantage of much lower transportation costs for Australia, it also has the advantage of a large and growing population that is very near to Australia’s shores. East Asia has a limited supply of raw materials relative to its population, Australia provides an obvious complement in terms of a very small population and its rich endowment of natural resources
Who are Australia’s three main export partners and import partners?
Exports: China, Japan, Korea
Imports: China, United States, Japan
What trade advantages does the Asia-Pacific region offer Australia?
Lower transport costs and big population with demand for our resources
