T1 Aus International Trade 3 PPT Flashcards
What does the composition of Australia’s trade reflect?
Australia’s comparative advantages and disadvantages.
How has Australia’s trade changed over the decades?
Increased: Minerals and energy exports
Declined: Rural and manufactured exports
What has happened to Australia’s rural trade since the 1970s?
Sharp decline.
What sector has seen the most growth in the last 30 years?
Mining.
What has happened to manufactured exports?
Declined.
What is Australia’s second-largest export category?
Services (though it has declined slightly).
What is comparative advantage?
The ability of an economy to produce a good or service more efficiently and competitively than others.
Why has Australia shifted from rural to mining and services exports?
Growth in China’s economy.
How did China’s rapid growth from 2000 affect Australia?
💡 Fueled a mining boom, increasing demand for Australian resources.
What resources does Australia supply to China?
💡 Iron ore, coal, and natural gas.
Why does China need Australia’s resources?
💡 China is the world’s largest manufacturer and requires raw materials for production.
What are Australia’s top 5 exports?
💡 1. Iron ore
2. Coal
3. Natural gas
4. Education
5. Gold
What percentage of Australia’s exports are primary commodities?
💡 8 out of 10 (80%).
What are Australia’s top 5 imports?
- Personal travel
- Refined petroleum
- Passenger motor vehicles
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How are Australia’s imports divided?
💡 50% services, 50% manufactured goods.
How has the direction of Australia’s trade changed over the decades?
💡 Shifted from Europe to the Pacific and Asian regions.
What percentage of Australia’s exports go to Asia?
💡 Over 80%.
What percentage of Australia’s imports come from Asia?
💡 70%.
❓ What is Australia’s top trading partner?
💡 China (33% of exports, 20% of imports).
Who are Australia’s top 4 trade partners?
China, Japan, the U.S., South Korea.
Why has Australia shifted its trade focus to the Asia-Pacific?
💡 - Closer proximity
Rapidly growing population
East Asia has limited natural resources
❓ What is the “saving-investment gap”?
💡 The difference between how much people save and how much businesses invest.
