China and Australia Flashcards
Globalisation
The process by which the world is becoming increasingly inter-connected as a result of increased trade and culture exchange.
Globalisation has resulted in:
- more goods and services across countries
- emergence of a global economy
- transnational corporations
Trade
Imports and Exports
Foreign Investment
Australians work overseas and vice versa
Technology
Efficient communication between countries
Migration
settlers come to live in Australia
Top 4 Exports
Iron ores & concentrates 50,089
Coal 13,115
Wool & other animal hair (incl tops) 2,975
Gold 2,938
Top 4 Imports
Telecom equipment & parts 7,663
Computers 5,873
Furniture, mattresses & cushions 2,995
Prams, toys, games & sporting goods 2,469
How Important is trading with China
Exports: $106,330 million
Imports: $68,121
How valuable is trade with China?
The value of trade is $194.6 billion which is more than the combined value of trade with 3 other major trading partners (US, Korea, Japan)$147.8 billion
How has china’s iron ore consumption dropped in the last few years?
China’s General Administration of Customs has reported that the import of iron ore into the country declined by 1 percent in 2018 from the prior year, this is the first time in eight years that this has happened. This will affect Australia because Iron Ore is one of its largest Exports to China.
What is CHAFTA?
CHAFTA is the China and Australia free trade agreement which was established in 2015. Free trade is the reduction in trade barriers. China is one of Australia’s major trading partners, buying approximately 1/3 of all Australian exports (majorly agricultural imports). This agreement benefits both Australian and Chinese buisnesses.
How would a slow down in China affect Australia?
It’s generally agreed that much of the current demand for property is coming from overseas investors.If demand from overseas investors did disappear, or even reduce moderately as a result of government austerity, it could result in a disastrous property crash at home – which could see prices fall and the economy slow down, if not recede.Additionally, a weaker Chinese economy would cause problems for our GDP, since more than a third of our total export trade is accounted for by China.
