Chapter 8.5

Question 1

What are the top three commodities that Australia imports?

Answer 1

1. Machinery (including computers): US$31.9 billion
2. Mineral fuels (including oil): US$30.3 billion
3. Vehicles: US$30.1 billion

Question 2

What is the first positive effect of imports?

Answer 2

• There is an enormous range of goods and services for consumers to buy.

Question 3

What is the second positive effect of imports?

Answer 3

• Australian producers are forced to make goods and services using the most efficient methods in order to compete with overseas exporters. This increases productivity and growth within businesses.

Question 4

What is the third positive effect of imports?

Answer 4

• Importing goods from other countries encourages those countries to buy your exports.

Question 5

What is the first negative effect of imports?

Answer 5

• Australian jobs may be lost due to countries with cheaper labour costs.

Question 6

What is the second negative effect of imports?

Answer 6

• Imported resources may lower employment opportunities for Australian workers.

Question 7

What is the third negative effect of imports?

Answer 7

• Harmful animal species as well as diseases my be brought into the country.