Premium Essay

Australia Trade Policy

In: Business and Management

Submitted By lisale297
Words 2471
Pages 10
Table of content 1. Executive Summary page 2

2. Introduction page 2

3. Present Trade Position page 3 3.1 Current Account Deficit page 3+4 3.2 Net Foreign Debt page 4+5 4. Australia’s Trade Policy page 5 3.4 Trade Liberalization and Protection in Australia page 6 3.5 The Australian Dollar page 6 3.6 SWOT (Strength, Weakness, Opportunities Cost and Threat) Analysis page7 3.7 CBA for Structural Reform page 8

4. Conclusion page 9

5. Recommendation page 9+10

6. Reference page 11

1. Executive Summary
The purpose of this report was to analysis present of Australia’s trade position and prepared a plan for improving Australia’s position. Specific objectives were to identify key economic problems in term of trade and current account. Problems and solutions were found in the trade and current account though Carbon tax with high Australian dollar is likely to force radical structural reform on the economy and the manufacturing. The report recommends using structural reform to improve Australia’s trade position. Furthermore, Carbon tax initially acts against competitive international trade. In the long term, it can offer solutions to the two sector economy. 2. Introduction Since the onset of the East Asian economic and financial crisis in late 1997 the Australian economy has continued to record strong growth, despite many of Australia’s Asian major trading partners (MTPs) experiencing recession and a consequent slowdown in world economic growth. Therefore, this report will prepare a plan for improving Australia’s trade position and will focus on four areas: • Recommendations to improve Australia’s trade position • Identification of issues in the current trade environment which need...

Similar Documents

Premium Essay

Some People Believe Immigration Damages Host Society, While Others Believe Immigration Enriches the Host Society. Present the Arguments of Anti- and Pro-Immigration Groups in One or Two Countries, Explaining Why They

...affect it has, ultimately depends on the attitudes, policies and beliefs of the society’s people. The reception of migration may be influenced by personal values and way of life of citizens, however it can also be seen to be hugely swayed by political leaders. This essay will demonstrate these points through explanation and the exploration of the thoughts of those, both anti- and pro- immigration with within Australia. It will highlight the assets which migration can provide Australia – economically and culturally and give reasons why anti-immigration policies would damage the society instead of enriching it. Reasons why immigration is seen in a negative light will also be addressed, including national identity loss, unemployment and negative economic effects. Over the last fifty years, Australia has encompassed a large-scale immigration policy predominantly “concerned with population building and importing human capital and skills,”(Jackubowicz 2006). Multiculturalism, strongly linked and interchangeably used with immigration came around as a term in the 1970’s and was initially strongly advocated politically. However in more recent years questions relating to whether or not multiculturalism should be encouraged have arisen, triggering strong debates and inconsistencies amongst Australian’s and particularly in the political sector. There are a range of anti-immigration groups that have existed or still exist in Australia, all aiming (or they aimed) to project their......

Words: 2067 - Pages: 9

Free Essay

Business Research

... 5 iii. Data Collection 6 iv. Expected Outcomes - Conclusion 7 Reference 8 Executive Summary This report shows the immigration rates and is compared to those of the rest of the world. From this report, Australia can be seen as a widely multicultural society with a very wide variety of ethnicities and country of origins. The first chart was obtained from the Australia Bureau of Statistics. It clearly outlines the migration growth from the 1970’s – 2014; Although the numbers are not inversely increasing, the final migration population in the recent years has clearly outgrown from when migration first started back in the 70’s. The second chart was also obtained from the Australia Bureau of Statistics. The data reflects on the numbers of different population from different countries residing in Australia in the year 2014. It can be seen that the European countries are top on the charts followed by Asian countries. Despite each country having its own resources and opportunity to work, there are a portion of them that choose to migrate to Australia and have yet to stop increasing over the years. This could be caused by the increased job opportunities and scarce labour availability in Australia, hence requiring the extra experience and manpower available from all over the world. In a nutshell, from the statistics shown, one of the reasons the charts are showing an inverse increase over the years could be every so and then the......

Words: 1074 - Pages: 5

Premium Essay

White Australia Policy

...The Immigration Restriction Act 1901 (White Australia Policy) was one of the world's oddest race-based government policies in that much of the impetus for it came from white men who liked and respected non-white races to the point they felt inferior by comparison. In addition, many of the opponents of the policy said extremely racist things when arguing for its abolition. Reflecting the nuanced psychological issues associated with it, the Act instructed migration officials to use a dictation test that allowed non-whites to be excluded without publicly acknowledging that they were being targeted for exclusion. In other words, it was widely understood to be an Act designed to exclude non-whites but officially it wasn’t. The reluctance to officially recognise the Immigration Restriction Act as a policy to exclude non-whites could be partly explained as flowing from the popularity of non-whites in Australia for much of the 19th century. Ironically, this could be seen as a legacy of Australia's penal foundations. Specifically, in 1820, nearly 80 per cent of the colonial population was a Convict, Emancipist or of Convict descent. As a consequence, the majority of the population were second class-citizens and the exclusive free settlers were the disliked minority. Race was insignificant compared to the stigma of criminality and the majority of the population shared that stigma together. An English newspaper of the time wrote: "Historically, the greatest rift has been......

Words: 300 - Pages: 2

Premium Essay

Free Trade Agreement

...Free Trade Agreements in Australia’s economy Name: Institution: School: Date: Free Trade Agreement (FTA) Free trade agreement (FTA) is described as a treaty between two or more countries so as to create a free trade area. The free trade involves commerce in goods and services being carried out across the borders without any hindrances. The FTA always involve around the playing around with the tariffs. In an FTA agreement between two countries or more the tariffs are made common, that is, uniform tariffs among them and with other non-member countries. In FTA, the labor and capital may not move freely. Baykitch and Sladojevic (2015) explains that when an FTA agreement is made the countries or the companies involved the deal may not be welcomed by either the parties involved but when they both work towards it the realization of the agreement it becomes easy. It is also beneficial to both the countries because it enables the citizens to move freely for the betterment of the economy (Baykitch and Sladojevic 2015). China – Australia Free Trade Agreement An example of FTA agreement is the recent china-Australian agreement. The FTA agreement is considered to be beneficial to Australia in very many ways. Ball says that given that China has a population of above 13 million it opens the market for the Australian products. China is also the second-largest economy in the world's considering that is also an important manufacturing hub for the world products. It was......

Words: 2097 - Pages: 9

Premium Essay

Pest Analysis

...PEST on Australia Political aspect 1. Trading policies Maintains active and diverse international trade policy agenda which combines multilateral, regional and bilateral strategies to break down world barriers to trade. Trade policies are equally based on structural economic reforms to improve its international trade competiveness, and initiatives to promote liberalization of international trade and investment rules. Australia has good trading policies with its neighbor countries, and their trades are in favorable conditions, so operating Air Asia (AA) in Australia would be viable and there will be higher frequent business traveler. 2. Home market lobbying/pressure groups Committed Pressure group are allowed in Australia, which is good things, because of open political system, as results consumer and the citizen are more aware about the real business situation. Pressure groups will make the organization to think about the Corporate Social Responsibly and Ethics that it need to consider and practice in Australia. XX (company name) should come up with new business strategies which benefits environment, people and demoralizing un ethical activities. 3. International pressure group Australia is a sophisticated and modern economy. It is open market and it has good relationship with international welfare organization High Pressure group. In the environment, where there is high international pressure group, organizations should consider international......

Words: 1936 - Pages: 8

Free Essay

Australian and Spainish Bilateral Relationships

...Australian and Spainish Bilateral Economic and Trade Relationship Bilateral relations between Australia and Spain are progressively expanding. Spain offers important potential as a partner for Australia, both in the business sphere and in international relations (Smith 2010). While Spain's foreign policy has traditionally focused on the European Union (EU), the Mediterranean and Latin America, it is now broadening its diplomatic and commercial presence in the Asia-Pacific. In recent years, the Australian and Spanish Governments have reinforced growing trade and investment links by evolving policy dialogue on areas of shared interests (Downer 2009). Australia as well makes an excellent trade and investment partner for Spain in the Asia-Pacific region. Australia is a stable parliamentary democracy. The society is open and transparent, and the rule of law, so fundamental for sound business operations, underpins the Australian political and economic arrangements. Australia offers a safe environment in which to make business. Private property rights are secure. The courts have judicial independence. The public services are effective and efficient. Strong and mature national institutions are a key factor behind the favourable business perception of Australia (A G, Department of foreign affairs and trade 2012) The need to be a modern economy has long been recognised by Australian policy makers. Australia certainly has world famous agricultural and mining industries, but it also...

Words: 1722 - Pages: 7

Premium Essay

Economics 2 Essay

...THE LASTING EFFECTS OF THE TERMS OF TRADE BOOM ON THE AUSTRALIAN DOLLAR Word Count: 1406 Introduction The Australian Dollar (AUD) has experienced significant appreciation in the last decade culminating in record highs over the last 36 months. This sustained appreciation has raised concerns over the impact that a high AUD has on the Australian economy and its people. This paper analyses the underlying causes of the sustained rise, the impact that the exchange rate plays on the Australian economy and the implications for monetary and fiscal policies, particularly policies that will reduce the overall exchange rate. Background There are two distinct trends, which can be discerned from the nominal exchange rate of the AUD against the United States Dollar (USD) over the last 36 months. The AUD has achieved record ‘post float’ highs and sustained strength against the USD for much of this period (Garton, Gaudry, & Wilcox 2012). The trend of appreciation is most notable in Figure 1.1 between August 2011 and April 2013 where the AUD was consistently above parity with the USD. However, in the final 12 months of this period the AUD has fallen below parity and has continued to depreciate until the present day (RBA, 2014). Thus, it can be said that the AUD has experienced two separate trends in recent times, a record period of appreciation followed by a gradual and continuing depreciation. Figure 1.1: The AUD vs. USD nominal exchange rate over the last 36 months.......

Words: 1951 - Pages: 8

Premium Essay

Mgts2607

...Trade  Union  Decline:  Australia     Sarah  Jury       An  essay  discussing  the  factors  contributing  to  the  steady  decline  in  trade  unionism  in   Australia  since  the  1980’s  and  the  relevance  of  unions  to  workers  today.       M G T S   2 6 0 7 :   E m p l o y m e n t   R e l a t i o n s                                         W o r d   C o u n t :   1 9 8 2                           Sarah  Jury   Trade Union Decline in Australia   42395582   There has been a dramatic decline in trade union membership rates across Australia since the 1980s. In 1986, 46% (or 2.6 million) of employees were trade union members; this figure has steadily declined to 19% (or 1.7million) of employees in 2007 (Australian Bureau of Statistics, 2009). By May 2010 trade union membership had fallen to a record low of 18% (or 1.84 million) of employees and remained steady for the past 3 years (Australian Bureau of Statistics, 2013). This essay aims to highlight the factors that have played a significant role in the steady decline of unionization in Australia. It focuses on the changing composition of the labour force, the change in governmental policies, the newly empowered role...

Words: 2917 - Pages: 12

Premium Essay

Regional Trade - South Pacific

... 4 Economic Integration: Definition 5 Background of Free Trade in the South Pacific 6 PICTA 7 PACER 7 Advantages and benefits of Economic Integration 9 Drawbacks of Regional Economic Trade 11 Resolution 15 Conclusion 17 Bibliography 18 Appendices 19 Declaration of Originality We declare that this is our original work and all borrowed works had been cited and referenced. s11061729 Elizabeth Pearl Blakelock s11074679 Ranjeeta Devi s93005349 Mosese Vosarogo Acknowledgement We acknowledge our Instructor Mr Atishwar Pandaram for for the learning, Mr William Kurt of Cost-U-Less for allowing us time to interview him and for the valuable information and also Mr Aslam Janiff of Kundan Singh Supermarket and Andrew Powell Rajendras FoodTown Supermarket for giving their time to attend to us. Introduction In this project, we will attempt to highlight the implications of free trade amongst the south pacific island countries that are under the auspices of the 'The Pacific Islands Forum'. PIF is an inter-governmental organization that aims to enhance cooperation between the independent countries of the Pacific Ocean. Member countries are: Australia, New Zealand, Cook Islands, Fiji, Federated States of Micronesia (FSM),......

Words: 5104 - Pages: 21

Premium Essay

The Effects of Globalisation on Australia

...Anthony Stokes Lecturer in Economics, Australian Catholic University Globalisation is not new. Australia has been involved in trade, investment, financial flows, technology transfers and the migration of labour since its foundation as a colony. What has changed is the size, direction and influence of these transfers, especially since 1980. There are a number of factors that have aided this transformation. They include: • The expansion of new markets – foreign exchange and capital markets are linked globally. They operate 24 hours a day with dealings any where in the world possible in real time. Financial deregulation and the floating of the Australian dollar since 1983 intensified the impact of globalisation on the Australian economy. • New technology and the tools of globalisation – the internet, email, mobile phones, media and communication networks have all sped up the process of globalisation. They have increased the spread and speed of knowledge transfer and communication. Australian consumers can buy products from any nation in the world, transfer funds between accounts or purchase shares in any major market. Australian businesses can market their products at a fraction of the cost and be exposed to a global market place of competition. This potentially is the closest we will ever come to the perfect market. • New institutional players – The World Trade Organisation (WTO) has growing authority over national governments, as does the IMF with its......

Words: 2806 - Pages: 12

Premium Essay

Australia Is a Nation

...Introduction Australia has always been a trading nation. Its political, immigration and cultural links with other countries have been reinforced by international trade and investment, with its high reliance on imports such as electrical appliances, cars, clothes, footwear, PCs and watches being a reminder of these trade links. The influx of imported products has benefited Australia but in recent decades, the reliance on them has caused problems for its economy. Such problems have included trade deficits, whereby the value of imports has exceeded that of exports by between $12 and $20 billion each year. They also include foreign debt in money owed overseas, which has increased from roughly $19 billion to $527 billion since the 1980s, as well as causing unemployment. The increasingly complex pattern of Australia's trade links and the broadening of its export base reflect the attempt at tackling these ongoing problems. See image 1 Although Australia relies heavily on its overseas foreign investment and employers, with hundreds of foreign companies operating in Australia, it is also a high exporter of goods, services and capital, with most of its exports going to markets in South-East Asia. Agricultural goods and minerals dominate Australia's exports, as do some of its service firms such as Qantas which is well known overseas. This chapter will explore Australia's trade links in its membership of international trading blocs and agreements, its shift away from its traditional......

Words: 855 - Pages: 4

Premium Essay

Assignment

...exchange rates include the arguments that they cause uncertainty, they inhibit international trade and that they allow destabilizing speculation. Arguments against fixed rates include that they cause uncertainty, they inhibit international trade and they allow destabilizing speculation. Contrast the situation in one country with a fixed exchange rate with one country that has a floating rate and explain the impact of the fixed and floating rates. Introduction Prior to 1970, fixed, or say pegged exchange rate regime was adopted by almost all countries worldwide. Afterwards, some countries have gradually made the transition from fixed to flexible exchange rates, which allow currency to float freely. In the following section, the definition of both fixed and flexible exchange rates will be introduced. Thereafter, the situation in Australia, which floating exchange rate regime will be compared with that of in Hong Kong, which uses fixed exchange rate regime. Moreover, the impact of different exchange rate regimes on economic entities will be discussed. Types of exchange rate Fixed/Pegged exchange rate A fixed exchange rate is usually pegged the value of a currency to a strong foreign currency such as US dollar or Euro (Hunt and Terry, 2011). This kind of rates is sets and maintained by the local government (e.g. central bank). In order to maintain a stable rate, the government trades its own currency on the foreign exchange market in return for the currency to which......

Words: 1911 - Pages: 8

Premium Essay

Ausmat

...Globalisation and Rising Inequality in Australia Is Increasing Inequality Inevitable in Australia? Tom Conley Griffith University Introduction I want to dedicate my government to the maintenance of traditional Australian values. And they include those great values of mateship and egalitarianism.1 10 years ago a Mitsubishi type development would have flattened people psychologically. Now they take it in their stride … 2 Policy-makers and commentators have long been cajoling Australians into accepting that they are a part of the global economy, which means an acceptance of a whole range of ‘new realities’. One of the major themes of the pro-globalisation position is that Australia has accepted these new realities and adjusted well to globalisation by embracing economic liberalism. The results, it is argued, have been overwhelmingly beneficial. John Howard points out the Australian economy has grown for fourteen years straight – a remarkable achievement by any standards. This success story of growth has tended, however, to override more disaggregated, negative analyses of social outcomes in Australia. A less sanguine part of this new globalising ‘reality’ appears to be an acceptance of rising inequality. Indeed, it is often implied that rising inequality is a spur for growth. The argument is that everyone is better off, it’s just that some people are better off than others. While commentary is often not explicit about the association of globalisation and rising......

Words: 11217 - Pages: 45

Premium Essay

The Effects of Globalisation on Australia

...“The Effects of Globalisation on Australia” Economic, Social, Cultural, Environmental and Political Word Count: 1,638 Table of Contents Table of Contents 2 Executive Summary 3 Introduction 4 Economic 5 Social 7 Cultural 9 Environmental 10 Political 11 Conclusion 12 References 13 Executive Summary The effects of Globalisation on Australia can be disseminated into a number of different categories. For the purposes of this report five major categories including Economic, Social, Cultural, Environmental and Political have been explored and summarised but is by no means exhaustive. The overall effects and impact of globalisation on Australia may well be positive to the general population, but there will always be those who are disadvantaged, and those who have increased advantages. In this report the authors attempt to separate the above mentioned elements and treat them individually. It should be noted however that it is extremely difficult to do so as many issues interact and overlap with some or all of the elements of globalisation, as globalisation has been in existence since the stone-age. “Just as the concept of globalisation is contested and multifaceted so are the choices available to citizens and governments.”[i] Introduction How one views ‘the effects of globalisation on Australia’ will very much be determined if one defines globalisation in its broader sense or otherwise. Globalisation seems to be the catch phrase of the 21st......

Words: 2370 - Pages: 10

Free Essay

What the Government Should Do in Regard to China Policy Following the 2013 Federal Election

...What the Government should do in regard to China policy following the 2013 Federal Election 30 July 2013 at 22:44 Some Australian commentators claim that Australia is at a cross roads, and that it is unprecedented that its largest trading partner is not its closest ally.[1] In fact, its major ally and largest trading partner are engaged in a Cold War power struggle. They go on to say that solving this ‘unprecedented’ situation is Australia’s greatest foreign policy conundrum for at least the next decade.[2] However, Australia’s situation is not unique, neither in the region nor in its own history. By considering the recent positions of the major political parties this essay will examine Australian and Chinese foreign policy in relation to the importance of the Australian-Chinese relationship and whether we need to choose between China and America. Lastly, I shall recommend strategies for the Australian government to implement regarding its China policy. The overarching foreign policy aim for both the ALP and Coalition is serving Australia’s national interest, which can be broadly broken down into four main goals: maintaining the territorial integrity of Australia, including the safety and security of its society and economy; ensuring regional stability and preserving the existing regional balance of power; the sea lanes that make up the arteries of international trade remain open; and responding to new security threats.[3] Included in the last goal are terrorism,......

Words: 3038 - Pages: 13