Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Significance of trade for the australian economy


Published on

Year 12 ATAR Economics - Australian Trade

Published in: Economy & Finance
  • Be the first to comment

  • Be the first to like this

Significance of trade for the australian economy

  1. 1. INTRODUCTION Australia is a medium, open economy Economic Growth depends on our trade with other nations The Australian economy is the 12th largest in the world Australia is the worlds biggest exporter of Iron Ore
  2. 2. WHY DO WE TRADE? Countries need to specialise in and produce a surplus. The surplus can then be traded with other nations Specialisation ensures that we produce more of a good or service than if we attempted to produce for all of Australia’s collective needs and wants Trade results in a higher standard of living
  3. 3. REASONS FOR TRADE Factors of production and factor endowments are unequally distributed globally due to ; 1. Land differences and climatic conditions 2. Labour cost differentials 3. Capital and technological advancements 4. Enterprise differences due to varying levels of education and training