Chapter 3 - Australia's Pattern of Trade

Question 1

Australia’s top 5 exports

Answer 1

Iron Ore, Coal, Education travel, Gold, Natural Gas

Question 2

Australia’s top 5 imports

Answer 2

Personal travel, Passenger vehicles, Refined petrol, Telecommunications equipment and Freight transport

Question 3

Top 5 two-way trade

Answer 3

China, Japan, USA, Korea, UK

Question 4

Trends in Australia’s trade composition

Answer 4

Primary industries (rural and resources) have dominated exports and manufactured goods for imports
Rapid increases in mineral and energy exports while decline in rural exports (also increases in services)
Trade shifted from Europe to East Asian regions
This change is due to rapid growth of China and other Asian economies resulting in mining boom

Question 5

Trends in Australia’s trade direction

Answer 5

Overseas growth hotspots - as countries grow and develop they demand more resources and supply more capital/consumer goods
In 1960s and 70s Japan was growing quickly, while currently China experiencing large amount of growth
Comparative advantage influences general shape/pattern of international trade (China and Aus)

Question 6

Factors affecting trade intensity

Answer 6

Proximity of trading partners
Whether trade is regulated by trade agreements
Degree of comparative advantage
Cultural, historical, political ties

Question 7

Factors the affect Australia pattern of trade

Answer 7

Cyclical: Economic activity
Structural: International competitiveness, changes in technology, FDI
Shock