Austarlia's current trading position

Table of Contents

1.0         Introduction         1

2.0         The effectance of international barter         1

2.1 Imports         1

2.1.1 circumspection of imports         2

2.2 Exports         4

2.2.1 Direction of exports         5

3.0         Balance of payments         6

4.0         Exchange rates         7

5.0 Foreign investment         8

6.0 apportion blocs         8

7.0 Conclusion         10

References         11

1.0         Introduction

Trade is of vital importance to Australia. It now accounts for around 40% our national income with exports of goods and service generating around $1452.2 billion in income for Australia in 2001-02 (D.F.A.T. 2003). The purpose of this paper is to examine the nature and importance of trade to the Australian economy. In particular, the scope of this paper will be confined to the benefits of trade followed by an analysis of changes in Australias calling patterns.

2.0         The importance of international trade

The importance that Australia places on trade target be attributed to the fact that Australians are not able to dumbfound all the goods and services required by Australian consumers (DFAT, 2003). outside(a) trade is geared around the concept of mutually proficient exchange.



So by trading Australia is able to focus on producing goods and services in which it is most competitive, ultimately enabling Australian consumers to gain from having a wider choice through importing of products and services that they are unable to produce for themselves. That is Australia gains from trade the ability to import things it fates (Krugman 1993).

2.1 Imports

About one-tenth of Australias merchandise imports consist of primary products such as food and beverages and crude petroleum while the re primary(prenominal)der of manufactures consists chiefly of elaborately transformed manufactures (ETMs) such as computers, machinery and transport equipment. The main service imports consist of transportation, travel, communication and insurance (DFAT 2003). A key out of Australian imports by broad categories can be seen...

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