Chapter 25 Australian Economy

Unit 25 The Australian Economy Section I AgricultureAgriculture Section II Manufacturing IndustryManufacturing Industry Section III Minerals and Energy IndustryMinerals and Energy Industry Section IV Service IndustriesService Industries Section V TradeTrade Section VI Problems in the EconomyProblems in the Economy

Section I Agriculture Natural conditions Natural conditions Agricultural products Agricultural products Farms Farms The history of agricultural development The history of agricultural development

1. Natural conditions Harsh climatic - hot and dry (the driest in the world) The continent is large in size and rather flat

2. Agricultural products Food and natural fibers - the world’s leading producer Wool – the world’s largest exporter Meat – the second Wheat – the third Sugar Fruits Cotton Rice Dairy products – the major supplier in the world

3. Farms Vary in size: big and small Two types: commercial rural properties (125,000) engaging in dairying, horticultural production and sugarcane growing (one-third)

4. The history of agricultural development (1) In 1821 the 1 st half of 20 th C 1950s & 1960s The first sale of Australian wool; thus began Australia’s wool industry Rural production continued Domestic protection affected the competitive- ness of Australian agriculture

4. The history of agricultural development (2) In s & 1980s up to 1986 lost preferential access to the British market difficult to compete in the world markets growth 2.7%

Section II Manufacturing Industry Manufacturing in Australia began with the making of bricks, plates and clay pipes in Sydney in 1788.

Today Australia has a broad industrial base, a wide range of manufactured goods from fashion garments to food, complex electronic devices to household appliances, from base metals to precision instruments. (15% of GDP) Section II Manufacturing Industry

Features Inefficiency Concentration Foreign investment Generally, Australia’s manufacturing industries are due to: its limited local market, its geographical isolation; high levels of tariff protection Australian industries are highly concentrated in terms of ownership though moderate in size. There are about 14 large national monopolies in particularly important industries in Australia. Australian manufacturing relies heavily on foreign investment. Foreign-owned companies tend to be more profitable than their Australian counterparts.

Section III The Minerals and Energy Industry  Abundant in minerals and metals – the world’s largest  Major deposit of bauxite, mineral sands, diamonds, black and brown coal Coal – the world’s largest exporter Crude oil and liquefied natural gas  Heavily dependent on overseas market

NewProblems 1. Mineral access has been restricted in the name of environmental protection and also a consequence of the granting of Aboriginal land rights. 2. The high incidence of mining-related diseases has focused people’s attention on the very real health hazards associated with the industry.

Section IV Service Industry Including banking, advertising, transport and communications, tourism, the retail trade, community services, power and water utilities, building and construction, information.

Advantageous the fastest-growing sector information industry service exports tourism international education services computer-based technology (relying on the US, Japan or Europe) Disadvantageous

Section V Trade  A middle-level trading nation  Trade--the backbone of the country  Features: selling raw materials for finished products (the home market is too small; the overseas goods are cheaper)  Specialization both negative and positive

Britain the US & Japan Trade Partners At the end of the 1940s, Australia's international trade was still dominated by Britain. After 1973, its trade with Britain dropped. The US and Japan have replaced Britain as major trading partners of Australia. P.R. China China has become its top trading partner since 2008.

Trade relations with China  Developing rapidly  3% of total exports and the same in imports  Complementary (Australia is rich in natural resources; China is competitive in labor-intensive products)  A great potential for future

Section VI Problems in the Economy back Over-Reliance on Commodity Exports Decline of its Share in World Trade The Decline of Manufactures due to Tariffs

Exercises I.Fill in the blanks with proper words or expressions. II.Explaining the following in English.

I. Fill in the blanks with proper words or expressions. 1. Australia was once a Britain _______ colony, and now it has become one of the __________ countries in the world. 2. Manufacturing in Australia began with the making of ______ in Sydney in It is estimated that ___% of all manufacturing firms are small businesses. penal penal developed developed bricks bricks 95 95

4. In terms of ownership, Australia industries are highly ______________. There are about ___ large national monopolies in Australia. 5. Australia manufacturing relies heavily on _______ investment. Foreign-owned companies in Australia tend to be more ___________ than their Australian counterparts. 6. Australian agriculture is till very important in the country’s economy, but its relative importance has ________ in recent years. concentrated concentrated foreign foreign profitable profitable declined declined

7. Australia is one of the world’s biggest producers of ________ and _______ in the energy industry. 8. The ______________ and _______ industry is now central to the Australian economy. 9. The _____ boom of the 1850s brought an increase in population and investment. 10. In the past decades, Australian service exports have _________ while imports ___________. minerals minerals metals metals manufacturing manufacturing service service gold gold increased increased decreased decreased

II. Explaining the following in English. 1. BHP BHP Billiton is the world's largest mining company. It is also the largest company in Australia by market capitalization. It was incorporated in 1885, operating the silver and lead mine. It is also known by the nickname "the Big Australian".

2. Bass Strait Bass Strait is a sea strait separating Tasmania from the south of the Australian mainland, specifically the state of Victoria. There are over 50 islands in Bass Strait. A number of oil and gas fields exist there.

3. Australian service industries Service industries are also called “tertiary” industry. in Australia service industries generally include banking, advertising, transport and communications, tourism, the retail trade, community services, power and water utilities, building and construction. The service sector now includes an additional “quaternary” level, which cover the research, processing and storage of information.

4. police of protectionism in trade Protectionism is the economic policy of restraining trade between states. The term is mostly used in the context of economics, where protectionism refers to policies or doctrines which protect businesses and workers within a country by restricting or regulating trade with foreign nations.

Questions for discussion 1.What are the features of Australia manufacturing industry? 2.How important is the mining industry to the Australia economy? 3.Why has Australian service industry been growing so fast in recent decades? 4.What are the factors that have affected Australia’s trading patterns and international economic relations? 5.What are the major problems associated with the Australian economy?