International Trade and Logistics Presentation: Free Trade Benefits

This presentation analyzes international trade and logistics, focusing on Australia's role in the global market. It explores the benefits of free trade, such as increased market access and revenue, and the challenges, including trade restrictions and import quotas. The presentation also includes a simulation of a trader's experience, highlighting the impact of economic conditions and the advantages of free trade. The paper concludes that the benefits of free trade outweigh the challenges and recommends that Australia promotes free trade globally and provides support to its traders. The presentation also suggests that Australia should explore exporting services to increase its income. The presentation includes findings on the volatility of the world economy and the importance of shrewdness in the global market.

INTERNATIO
NAL TRADE
AND
LOGISTICSA P R E S E N T A T I O N B Y :

INTRODUCTION
• Balance of trade determines a country’s fortunes on the international
markets.
• Exports need to exceed imports in order to ensure a positive prosperity for
a country.
• Cheap goods can be sold in bulk, or high value goods can be traded on the
international market by the said country.
• Forex earnings from international trade can help the country meet its
internal commodity deficits.

PROFILE
• I am an international trader from the continent of Australia.
• The items of trade are aluminum, wool and coal
• My intentions in the market are to sell of all that I have and purchase a wide range of
commodities for resale to customers back at home.
• I commence trading with 5 and 100 metric tons of aluminum and coal respectively, and
800kg of wool. The amount of money at my disposal is $ 8,000.
• I manage to raise my account to $34000 by selling all the items
• Then I manage to purchase goods from all the other continents except cotton in Africa where
I am restricted by being informed that there are trade restrictions between our countries.
• After buying a considerable amount of goods, I am able to remain with $25,000.

FINDINGS
• Therefore, a good economy is positive for sellers and negative for buyers. The
reverse is also true: when the economy is bad, it means that commodities fetch
low prices.
• Another finding was that the world economy is generally volatile; with the
condition of the economy changing from bad to good and vice versa within a short
time.
• Another key finding that I was able to make is that the principle of free trade is
very advantageous to world trade because it enables any trader from anywhere to
buy goods from any other country
• A trader need to know operating restrictions
• Some goods move at a better price than others
• The global market needs shrewdness when trading

BENEFITS AND
CHALLENGES FOR
SELECTED CONTINENTBenefits
• First, free trade means more and varied markets for Australian goods.
• Related to this, it implies that the volume of goods and therefore the associated revenue that
Australia can gain from free trade will go up.
• Australia can import as much of the goods that it requires as possible, and that these goods can be
sourced from the cheapest markets overseas.
Challenges
• The market for Australian goods will be restricted.
• Even where Australia can sell some goods, there would be restrictions in terms of volume of goods to
be sold: i.e. importation quotas of those countries.
• Trade restrictions in the form of tariffs make goods to be expensive because there is an additional
layer of taxes or tariffs on top of the actual prices of the goods.

COMPARISONS OF HOW VALUE CAN BE
CREATED IN A FREE TRADE ENVIRONMENT
AND HOW IT CAN BE DESTROYED IN AN
ANTI-TRADE ENVIRONMENT FOR AUSTRALIA
Value Creation in a Free Trade
Environment
Value Destruction in an Anti-Trade
Environment
Low cost of doing business High cost of doing business
Market prices for goods Inflated prices of goods due to added tariffs.
Unrestricted volumes traded due to no quotas Restricted volumes traded due to quota restrictions or
excessively high tariffs that make the goods unaffordable
(Giuffrida et al, 2107).
Real or non-distorted prices on market Distorted prices due to added high tariffs.

CONCLUSION
• The conclusion of this paper is that the benefits of free trade internationally
far outweigh the challenges of operating in an international environment of
restricted trading. International trade continues to be dynamic and
beneficial to countries that support free trade.

POLICY
RECOMMENDATIONS FOR
AUSTRALIA• The country should continue to press for free trade all over the world so
that it can have a wider market for its goods sold and a wider source for the
goods to import.
• Australia should give its traders as much assistance and incentives as
possible to participate in international trade.
• Apart from exporting goods, Australia should consider exporting services
overseas and this will add income to the country.

END
THANK YOU FOR YOUR TIME!