Economics Protection Short Answers Flashcards
Propose likely changes the structure of Australia’s mining industry in the future
Into the future, Australia’s mining sector will continue to be the most significant sector in the economy, due to strong global demand for Australia’s commodities. In particular, emerging economies in the ASIA pacific region, including the ASEAN economies of Thailand and the Indonesia, will fuel the strong performance of Australia’s mining sector.
Propose likely changes the structure of Australia’s services industry in the future
Australia’s sophisticated financial services industry are projected to grow into the future as Australia become a hub for the Asia Pacific region. Australia’s education sector, particularly the tertiary education sector, is also projected to grow due to strong demand from the emerging middle class in China, despite the short term decline due to COVID-19.
Propose likely changes the structure of Australia’s agricultural industry in the future
Australia’s agricultural industry is expected to face difficulties in the future due to the growing threat of climate change and the scarce of water availability in inland regions. However, Australia’s value added agricultural goods, including the wine and cheese industries, are expected to grow into the future due to high demand for the middle classes in China and India.
Examine how changes in the global economy has changed the structure of industry in Australia. 6
Changes in the global economy has affected the structure of Australia’s mining industry, services sector and manufacturing industry.
The increased demand for Australian metals and minerals has led to the increase in the size of the mining sector in Australia, with the commodities boom of 2003-07 adding 100 000 jobs directly to the Australian economy. Furthermore, strong demand for Australia’s commodities in 2009-13 and recently from 2016-19 have enabled Australia’s minerals and metals to comprise 58% of total exports, increasing from 35% of export revenue in 2000.
The increased competitiveness of the Chinese manufacturing industry has contributed to the decline in Australia’s manufacturing sector, with domestic firms unable to compete with Chinese firms due the availability of low-cost Chinese labour. However, this decline in the manufacturing sector, comprising 18% of export in 2000 and only 11% in 2018, has also been caused by changes to domestic policy, with Australia’s policy of trade liberalisation exposing domestic producers to efficient foreign competitors, and the elimination of subsidies in the TCF and automotive industry contributing to this decline.
The failure of the Doha Round in 2015 has contributed to the weakening performance of the Australian agricultural sector, now comprising only 10% of Australia’s exports, by failing to eliminate agricultural subsidies in several developing economies. Whilst Australia’s FTA’s have decreased the size of the agricultural quotas in the US and Japan, beef subsidies in the United States, Canada and Japan continue to affect Australian agricultural exporters by reducing their international competitiveness.
