The Structure and Pattern of Australia's Trade

Introduction The purpose of this report is to analyze the structure and pattern of trade in Australia. The report uses trade statistics and theoretical perspectives from 1999-2000 to 2003-04 to help explain the landscape of trade. Focus is the balance of payments related to import and export, then the determinant of the terms of the transaction, and finally the reason for the Australian trade pattern. Note: All numbers are in Australian Dollars (AUD). Balance of payments Australia's balance of payments is a systematic record of economic transactions between residents of Australia and residents of other countries.

The process of trade liberalization in Australia has completely changed the economic structure since the 1970s. Structural change involves changes in production patterns reflecting technology changes, consumer demand, global competitiveness, and other factors. Protection policies influence the natural change in the economic structure and often lead to the decline of the global competitive industry. Australia's net tariff aid in 2011-12 was $ 1.1 billion, a small percentage of GDP (less than 0.1%). Australia's tariff level fell from 36% in 1968 to 8% in 2011. This is why Australia is one of the most open economies in the world. However, this has had positive and negative impacts, Australian industries are forced to concentrate on comparative advantage, so competitiveness and efficiency got higher and severely protected industries suffered from recession and unemployment

In the real world, understanding in Australia is important for regional trade and business model. America was once our largest trading partner, followed by the top ten European countries. Today, one third of Australia's foreign exports are for China, and six of the top ten companies are in Asia. Chinese tourists and immigrants love this country. In addition to being kind, to overflow in energy and opportunities, we need to understand China and its systems, values ​​and trajectories.

How much is Australia trading with China? Let's take a look at Australia's trading partner, using DFAT's 2016 - 2005 product and service data. Bilateral trade volume with China is $ 174.7 billion, accounting for 23.8% of interactive trade. From a certain point of view, Japan ranked second, US ranked third and bilateral trade was 3% and 9%, respectively. These figures show how much we depend on China as our supplier and customer. Australia, a country where free trade is prosperous, should avoid avoiding foreign direct investment. Please open the door, and you can earn more profits than shutting them down to the outside world. China investment should be encouraged, but we should start applying a more rigorous framework to decide which investment will be approved. Our concern needs to be centered around assets purchased and funding sources for these investments.