2. © Karen Devine 2010 Australia's Trade Links

3. Australia’s Trade Links According to the principle of comparative advantage, nations specialise in goods and services and then exchange these with other nations through the process of trade. According to the principle of comparative advantage, nations specialise in goods and services and then exchange these with other nations through the process of trade. © Karen Devine 2010

4. Australia’s Trade Links Each nation has different resource endowments which are used to produce its goods and services. These resources include: Each nation has different resource endowments which are used to produce its goods and services. These resources include: a) natural resources b) human resources. © Karen Devine 2010

5. Australia’s Trade Links The exchange of goods and services in the process of importing and exporting is the basis of trade. The exchange of goods and services in the process of importing and exporting is the basis of trade. Australia is largely an exporter of: Australia is largely an exporter of: a) agricultural products b) minerals and ores c) simply transformed manufactures (STM’s). © Karen Devine 2010

6. Australia’s Trade Links Yet, Australia is largely an importer of elaborately transformed manufactures (ETM’s). Yet, Australia is largely an importer of elaborately transformed manufactures (ETM’s). © Karen Devine 2010

7. Australia’s Trade Links Historically Australia’s key trading partners have been UK, Japan and the USA. Historically Australia’s key trading partners have been UK, Japan and the USA. However, since December 2008, China has become Australia’s main trading partner. However, since December 2008, China has become Australia’s main trading partner. © Karen Devine 2010

8. Australia’s Trade Links World trade has grown significantly in recent years due to: World trade has grown significantly in recent years due to: a) falling protection barriers b) increases in the number of MNC’s c) growth in internet businesses d) development of regional trading zones. © Karen Devine 2010

9. Australia’s Trade Links Australia’s place in the Asia-Pacific region means significant development in the area of trade. Australia’s place in the Asia-Pacific region means significant development in the area of trade. The Asia-Pacific region is home to the Asian Tigers which are some of the fastest growing economies in the world. The Asia-Pacific region is home to the Asian Tigers which are some of the fastest growing economies in the world. © Karen Devine 2010

10. Australia’s Trade Links Australia is party to many trade agreements in the region which facilitates its trading relationships. Australia is party to many trade agreements in the region which facilitates its trading relationships. These agreements include: These agreements include: a) ANZCERTA b) APEC c) ASEAN. © Karen Devine 2010

11. Pause Point Watch film on Live Cattle Exports to Saudi Arabia. Watch film on Live Cattle Exports to Saudi Arabia.Live Cattle Exports to Saudi Arabia.Live Cattle Exports to Saudi Arabia. What special measures are taken when exports involve live animals? What special measures are taken when exports involve live animals? © Karen Devine 2010

12. Question Time? Why does Australia engage in live exports to the Middle East? Why does Australia engage in live exports to the Middle East? © Karen Devine 2010