Trade Analysis - Desklib

Running head: TRADE ANALYSIS
Trade Analysis
Name of the Student
Name of the University
Author Note

TRADE ANALYSIS
1
Table of Contents
Answer to question 1:......................................................................................................................2
Answer to question 2:......................................................................................................................3
References........................................................................................................................................9

TRADE ANALYSIS
2
Answer to question 1:
a. Trade transformation experienced by the Australian Economy
Since the initiation of the 1970s, the Australian economy has been facing two-way trade
owing to trade liberalization policy. The major portion of total trade earnings is related to the
international trade. However, the two-way trade is not now as effective as it was in the early
decades like the 1900s. The imposition of hike tariff rate as well as a change in the world
demand of the products is considered as the cause of this deteriorating trade performance. The
Australian economy as a member of the OECD countries is stated to achieve one of the lowest
ranks over the last decade (Jaimovich and Merella 2015). Apart from trade barrier, geographical
location also provides low business exposure to the Australian trading sector. Meanwhile, the
composition of trading partners has faced a notable change over the last four decades. The
United States (US) and Japan, instead of the United Kingdom (UK), are recognized as two
significant trading partners of the Australia. The emerging existence of the Asian countries
including China, South Korea and Japan in the international business also possesses serious
threat to the Australian economy (Siudek and Zawojska 2014). Further, recent changes in the
foreign investment account for the change in Australia’s export pattern.
b. structural transformation due to international market
Trade activity enhances the economic efficiency by the means of providing new
opportunities to both the producers and consumers. The producers get encouraged to improve the
quality and quantity of the products in order to hold a goodwill position in the international
competitive market (Leromain and Orefice 2014). On the other hand, the consumer can access to
huge products probably at cheaper price owing to the liberalized market structure. The