Copyright  2006 McGraw-Hill Australia Pty Ltd. PPTs t/a International Trade and Investment: An Asia-Pacific Perspective 2e by Gionea. Slides prepared by John Gionea.. 3 5–15–1 Chapter 5 Australia’s position in international trade and investment

Copyright  2006 McGraw-Hill Australia Pty Ltd. PPTs t/a International Trade and Investment: An Asia-Pacific Perspective 2e by Gionea. Slides prepared by John Gionea.. 3 5–25–2 Lecture plan Australia’s position in the world’s GDP and in terms of income (GNP/GNI) per capita Australia’s merchandise trade with the rest of the world Comparative trade indicators Australia’s position in the services trade Australia as a destination of FDI Australia’s direct investment abroad Australia’s top global corporations

Copyright  2006 McGraw-Hill Australia Pty Ltd. PPTs t/a International Trade and Investment: An Asia-Pacific Perspective 2e by Gionea. Slides prepared by John Gionea.. 3 5–35–3 The world’s largest economies (GDP in 2003 US$b.)

Copyright  2006 McGraw-Hill Australia Pty Ltd. PPTs t/a International Trade and Investment: An Asia-Pacific Perspective 2e by Gionea. Slides prepared by John Gionea.. 3 5–45–4 GDP of economies represented in our MBAIM, US$ billion (world ranking) WORLD Atlas method - Australia : US$522b. (13) - Hong Kong : US$127b. (30) - Malaysia : US$104b. (37) - Singapore : US$91b. (38) PPP method - Australia : US$589b. (16) - Malaysia : US$236b. (34) - Hong Kong : US$185b. (40) - Singapore : US$104b. (54) Source: World Bank at

Copyright  2006 McGraw-Hill Australia Pty Ltd. PPTs t/a International Trade and Investment: An Asia-Pacific Perspective 2e by Gionea. Slides prepared by John Gionea.. 3 5–55–5 Australia's rank in GNP/GNI per capita (2003: US$21,650): World Bank Atlas method Australia’s Rank Year:

Copyright  2006 McGraw-Hill Australia Pty Ltd. PPTs t/a International Trade and Investment: An Asia-Pacific Perspective 2e by Gionea. Slides prepared by John Gionea.. 3 5–65–6 Australia’s position in international trade 1980, 2000, 2003 IndicatorsRank 1980 Rank 2000 Rank 2003* % of World 2003 Merchandise exports (17*) 0.9 (1.2*) Merchandise Imports (12*) 1.1 (1.5 * ) Services exports Services Imports * excluding intra-EU trade, with EU as an entity Source: adapted from Table 5.1

Copyright  2006 McGraw-Hill Australia Pty Ltd. PPTs t/a International Trade and Investment: An Asia-Pacific Perspective 2e by Gionea. Slides prepared by John Gionea.. 3 5–75–7 Exports of goods and services as a % of GDP, selected economies, 2003

Copyright  2006 McGraw-Hill Australia Pty Ltd. PPTs t/a International Trade and Investment: An Asia-Pacific Perspective 2e by Gionea. Slides prepared by John Gionea.. 3 5–85–8 Australia’s merchandise trade, 1993–2003, US$ billion Source: adapted from WTO Annual Report 2004

Copyright  2006 McGraw-Hill Australia Pty Ltd. PPTs t/a International Trade and Investment: An Asia-Pacific Perspective 2e by Gionea. Slides prepared by John Gionea.. 3 5–95–9 Australia’s top 10 merchandise export markets, % of total exports, 2001–03 Source: adapted from DFAT, Australia Economic & Trade Statistics, July 2004

Copyright  2006 McGraw-Hill Australia Pty Ltd. PPTs t/a International Trade and Investment: An Asia-Pacific Perspective 2e by Gionea. Slides prepared by John Gionea.. 3 5–10 Composition of Australia’s merchandise exports and imports, primary products, manufactures, other, 1991, 2003, % of total

Copyright  2006 McGraw-Hill Australia Pty Ltd. PPTs t/a International Trade and Investment: An Asia-Pacific Perspective 2e by Gionea. Slides prepared by John Gionea.. 3 5–11 Hirschman concentration index for Australia’s merchandise exports YearHirschman concentration index Source: Calculated from data in DFAT, Direction of Trade Time Series, various editions

Copyright  2006 McGraw-Hill Australia Pty Ltd. PPTs t/a International Trade and Investment: An Asia-Pacific Perspective 2e by Gionea. Slides prepared by John Gionea.. 3 5–12 Share of intra-industry trade in Australia’s merchandise trade, 1991, 2003, by SITC category SITC SectionT (1991)T (2003) SITC SITC SITC SITC SITC SITC SITC SITC SITC SITC TOTAL Source: Calculated from ABS data, International merchandise Trade (Cat. No )

Copyright  2006 McGraw-Hill Australia Pty Ltd. PPTs t/a International Trade and Investment: An Asia-Pacific Perspective 2e by Gionea. Slides prepared by John Gionea.. 3 5–13 Australia’s services trade, US$ billion, 1993–2003 Source: WTO Source: adapted from WTO International Trade Statistics 2004

Copyright  2006 McGraw-Hill Australia Pty Ltd. PPTs t/a International Trade and Investment: An Asia-Pacific Perspective 2e by Gionea. Slides prepared by John Gionea.. 3 5–14 Australia’s services exports by main category, as % of total services exports, 1990, 2002 Source: adapted from World Bank, World Development Indicators, 2004

Copyright  2006 McGraw-Hill Australia Pty Ltd. PPTs t/a International Trade and Investment: An Asia-Pacific Perspective 2e by Gionea. Slides prepared by John Gionea.. 3 5–15 Australia’s rank and % share in the world’s foreign direct investment, 1980, 2003 IndicatorsRank 1980 Rank 2003 % of World FDI 2003 FDI outflows FDI inflows FDI outward stock FDI inward stock Source: adapted from Table 5.1

Copyright  2006 McGraw-Hill Australia Pty Ltd. PPTs t/a International Trade and Investment: An Asia-Pacific Perspective 2e by Gionea. Slides prepared by John Gionea.. 3 5–16 Australia’s FDI outflows and inflows, US$ billion,1991–2003 Source: adapted from UNCTAD, World Investment Report 2004

Copyright  2006 McGraw-Hill Australia Pty Ltd. PPTs t/a International Trade and Investment: An Asia-Pacific Perspective 2e by Gionea. Slides prepared by John Gionea.. 3 5–17 Foreign investment in Australia by source, % share, as at end of 2003 Source: adapted from ABS, Catalogue , 20 July 2004

Copyright  2006 McGraw-Hill Australia Pty Ltd. PPTs t/a International Trade and Investment: An Asia-Pacific Perspective 2e by Gionea. Slides prepared by John Gionea.. 3 5–18 Australian outward foreign affiliates of 641 Australian enterprise groups, 2002–03 IndicatorForeign Affiliates by Region EuropeAsia- Pacific Americas Number of affiliates Employment by foreign affiliates 64,928186, ,757 Revenue from sales of goods and services (A$ million) 31,32455,95555,131 Source: ABS Year Book Australia

Copyright  2006 McGraw-Hill Australia Pty Ltd. PPTs t/a International Trade and Investment: An Asia-Pacific Perspective 2e by Gionea. Slides prepared by John Gionea.. 3 5–19 Australian companies on Fortune’s top 500 global corporations, 2003, US$b. and rank Company Revenues US$b. Rank News Corporation Coles Myer National Australia Bank Woolworths BHP–Billiton AMP Telstra Source: adapted from Fortune Magazine, 26 July, 2004