International trade is the movement of goods, services and ideas between countries. It is based on a country specialising in producing a surplus of the goods it can produce most efficiently in order to gain a competitive advantage. Australia trades with over two hundred countries and contributes one percent to world trade. Trade is a vital component of Australia’s economic prosperity. Reasons for international trade include employment, business and economic growth.
For many years, Britain was Australia’s major trading partner but since it joined the European Union in 1973, we have increased our trading links with countries in the Asia-Pacific region. Advantages in trading products include Australia selling coal to China and Japan in high prices while in return Australia imports cheap toys produced by China and high-value products such as cars made in Japan. Reasons for international trade include employment, business and economic growth. Culture is all the knowledge and values shared by a society.
The advantages of trade towards culture include a variety of products, multiculturism and offers lifestyle choice. A variety of products leads to a large variety in products and more freedom in choosing products. Multiculturalism welcomes and comforts individuals from different nations in Australia and broadens the Australian trade market. Lifestyle choices are vastly improved with exported items from different nations. In saying that, there are still many disadvantages from international trading on culture. Some impacts include competition with local markets and inferior products.
Successful competition with local businesses can eventually lead to loss of jobs and broadening of export products. Economy is the system of production, distribution and consumption. Australia has had billions of dollars of economic growth since its beginning of international trade. Advantages to the economy via trade are employment, higher economic growth and source of income. Employment has been increasing in exporting industries and workers. During the tariff increase in the period 1974-1984, employment in the textiles and footwear sector decreased by 50000.
The countries involved in trade have experienced rising living standards, increased incomes and economic growth. However, disadvantages still prevail to the economy. Increased domestic economic instability from international trade cycles as economy becomes dependant on global markets. For example, recession in China leads to decreased demand for Australia’s exports, leading to falling export incomes, lower gdp , lower incomes etc. Exploitation of labour is common in countries with a large population such as China, Japan and India. They are paid extremely low wages for hard work.
Geopolitical is the combination of geographic and political factors influencing or delineating a country or regions. The advantages to Australia from trade are that it strengthens ties with other countries, producing less risk of war. It also improves border security as friendly, neighbouring countries such as New Zealand can provide border security for us. Trading also allows cooperation between countries on issues regarding asylum seekers and refugees. Islands off Australia have supported and welcomed the thousands of asylum seekers that seek refuge.
Disadvantages to the geopolicy of Australia through trade include disagreements/ trade disputes between nations if obligatory roles are not full filled. Some countries can provide unfair access to trade markets. China has allowed Australia to be the first accessor to many of their exports. In conclusion, Australia has received great economic growth, multiculturism and friendly relations through its cultural, economic and geopolitical ties with other nations through trade. But we have also had inferior product, exploitation of labour and products and disagreements through such trade.