Why Are Exports Important To Australia
Question 1. Why are exports so important to Australia?
The fundamental reason which underpins the importance of exports to Australia is economic growth. Exporting within Australia is important on both a macro and micro level. On a Macroeconomic level exports assist the success of imports within the nation and therefore help the expansion of the economy. Furthermore exports help Australia take advantage of economies of scale. Due to the fact that Australia is a small country, known in exporting mostly agricultural and mining products the domestic market is limited in growth, exporting is therefore needed to expend into different markets.
On a Microeconomic level exports encourage companies to develop and expand as they are competing with …show more content…
Through exports Australia can take advantage of products which are not available in the country (such as oil) and share their specialised products (such as sheep wool other agricultural products) to overseas markets, therefore mutual benefits are gained. ‘It is argued that if one nation specialise in what they are good at and trade with another nation for what they are good at then both nations will ultimately benefit’[i].
Exports have also proven to be beneficial to the labour market. ‘A comprehensive study of 540,000 Australian companies by the ABS does confirm that overall; exports are good for workers’[ii]. This is due to the fact that exporting creates more jobs for Australians and pay a better wage/salary then non-exporters, thus enchancing the overall living standard for Australian People.
Finally Exporting also enhances Innovation. Innovation is the key to development in the future, therefore being exposed to different markets enables the Australia to learn and develop overseas market leaders. ‘This will not only help the exporters themselves but will also be beneficial to the community as the exporter knowledge flows on to the domestic Australian …show more content…
They recognise the benefits of free trade such as generating income, increasing employment, increasing profits and enhancing the overall economic growth of all its member countries. APEC’s initiatives to facilitate free trade have evidently ‘contributed to strong economic growth and development in the Asia-Pacific.’[v]
In order to promote trade APEC met regularly to discuss ways in which trade could meet the expectations of the public. They achieved this through consulting ‘business and community groups and made publicly available a considerable amount of information about the Government's trade policy agenda’[vi]
Furthermore they promoted trade and the benefits it brings to both the host and home country by developing and conducting workshops and conferences addressing issues and providing information about various trade negotiations. An example of such a trade conference is the Australia United States Free Trade Agreement (AUSFTA) Conference were representatives from various industries were brought together to discuss impacts and opportunities brought upon by FTA for all participating
The fundamental reason which underpins the importance of exports to Australia is economic growth. Exporting within Australia is important on both a macro and micro level. On a Macroeconomic level exports assist the success of imports within the nation and therefore help the expansion of the economy. Furthermore exports help Australia take advantage of economies of scale. Due to the fact that Australia is a small country, known in exporting mostly agricultural and mining products the domestic market is limited in growth, exporting is therefore needed to expend into different markets.
On a Microeconomic level exports encourage companies to develop and expand as they are competing with …show more content…
Through exports Australia can take advantage of products which are not available in the country (such as oil) and share their specialised products (such as sheep wool other agricultural products) to overseas markets, therefore mutual benefits are gained. ‘It is argued that if one nation specialise in what they are good at and trade with another nation for what they are good at then both nations will ultimately benefit’[i].
Exports have also proven to be beneficial to the labour market. ‘A comprehensive study of 540,000 Australian companies by the ABS does confirm that overall; exports are good for workers’[ii]. This is due to the fact that exporting creates more jobs for Australians and pay a better wage/salary then non-exporters, thus enchancing the overall living standard for Australian People.
Finally Exporting also enhances Innovation. Innovation is the key to development in the future, therefore being exposed to different markets enables the Australia to learn and develop overseas market leaders. ‘This will not only help the exporters themselves but will also be beneficial to the community as the exporter knowledge flows on to the domestic Australian …show more content…
They recognise the benefits of free trade such as generating income, increasing employment, increasing profits and enhancing the overall economic growth of all its member countries. APEC’s initiatives to facilitate free trade have evidently ‘contributed to strong economic growth and development in the Asia-Pacific.’[v]
In order to promote trade APEC met regularly to discuss ways in which trade could meet the expectations of the public. They achieved this through consulting ‘business and community groups and made publicly available a considerable amount of information about the Government's trade policy agenda’[vi]
Furthermore they promoted trade and the benefits it brings to both the host and home country by developing and conducting workshops and conferences addressing issues and providing information about various trade negotiations. An example of such a trade conference is the Australia United States Free Trade Agreement (AUSFTA) Conference were representatives from various industries were brought together to discuss impacts and opportunities brought upon by FTA for all participating