U3 Global interdependence: Linkages between economies

Question 1

Trade

Answer 1

Australia’s top trading partners:
- China, Japan, United States

Australia’s top imports:
- cars, electronics, machinery, fuel, pharmaceuticals

Australia’s top exports:
- iron ore, coal, natural gas, gold, bauxite, education services

• Australia has become dependent on other countries for production and consumption goods due to its small and expensive labour force, which makes it uncompetitive for Australia to produce large-scale, low-value goods and services

Question 2

Investment

Answer 2

• Australia relies on foreign investment (mostly from China and Japan) to finance large capital projects due to its small population
• Without foreign investment, Australia wouldn’t be able to achieve its high levels of investment, which would cause many mining projects to be unable to access sufficient capital to develop

Question 3

Tourism

Answer 3

• Education related travel and personal tourism are part of Australia’s top exports
• Tourism is one of Australia’s largest imports (Australian’s travelling overseas)

Question 4

Immigration

Answer 4

Around 30% of Australian were born overseas