Australia Is a Nation

In: Historical Events

Submitted By Rimhammoud
Words 855
Pages 4
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.
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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 trading partners such as Britain, and the types of goods exported.
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The composition and direction of Australia's trade
For many years, Britain was Australia's major trading partner, with its purchase of Australian farm products and supplies to Australia of consumer goods. Britain's trade with Australia has declined since the 1960s, so that it now ranks sixth behind Australia's top…...

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