T1 Aus International Trade 2 Flashcards
What is dumping, and how does it relate to Australia and China?
Australia can dump wine in China, meaning it sells wine at a lower price than in its domestic market.
What happened to Australian wine prices in 2016 when selling to China?
Wine prices surged 40%.
Why does China import baby formula from Australia?
China lacks baby formula products and trusts Australian brands.
How much did Sydney home prices increase?
They doubled.
What percentage of foreign demand for Australian houses is from China?
87% (NZ is second at 1.6%).
How did NSW combat foreign property buyers?
By doubling the foreign buyer tax to 8%.
How is Australia classified in terms of economic size?
A small to medium economy.
What are Australia’s population and GDP?
26 million people, $2.5 trillion GDP.
Where does Australia rank in the world economy?
12th largest.
What percentage of world GDP does Australia hold?
Less than 2% (compared to the US at 27% and China at 17%).
What does an “open economy” mean?
It means goods and services can move freely, often under free trade agreements.
Why is trade important for Australia?
It increases consumption, allows access to specialized imports, and boosts export-driven production.
What was Australia’s trade-to-GDP ratio in 1990?
30%.
What was Australia’s trade-to-GDP ratio in 2024?
50%.
What percentage of global exports does Australia contribute?
1.5% (compared to China at 11.5%).
What is trade liberalization?
Reducing government regulations and trade barriers.
What does the WTO (World Trade Organization) do?
Facilitates, monitors, and enforces global trade agreements while promoting trade liberalization.
How is trade intensity measured?
(Exports + Imports) ÷ GDP × 100.
What is Australia’s general trade policy?
Australia has a long history of open/free trade policies.
How does the WTO promote free trade?
By encouraging countries to sign tariff-free trade agreements.
What are the two main types of trade agreements?
Bilateral Trade Agreements and Regional Trade Agreements (Trading Blocs).
What is a bilateral trade agreement?
An agreement between two countries to reduce or eliminate tariffs on trade.
What are examples of Australia’s bilateral trade agreements?
- JAEPA (Japan-Australia Economic Partnership Agreement)
KAFTA (Korea-Australia Free Trade Agreement)
Agreements with Indonesia, Thailand, and New Zealand.
What is a regional trade agreement?
A trade agreement between 20+ countries, usually based on location or culture.
What are examples of regional trade agreements?
European Union (EU)
ASEAN (Association of Southeast Asian Nations).
What are the benefits of free trade agreements?
Increased trade
Greater globalization
Access to cheaper, better-quality, and more diverse goods
More job opportunities and higher incomes
Economic growth and higher living standards.
