Advantages of trade in Australia
There are many advantages of trade can visibly captured throughout Australia’s growth. Firstly, trade provide better choice for the consumer and business. Trade provide more choice and the lower price of the product for the consumer in Australia by expanding resources of the services and goods. For example, consumer can make a better decision by considering the price of the product and services and also the quality of the product and services. Besides, trade also expanding the choice for the business in Australia. Trade make the export option wider for the exporters and also expand the supplier option for the importer in the Australia. For example, a vehicle company in Australia can import the other country’s vehicle into their company, so the Australian has more choice to make their decision.
Secondly, trade increase the product efficiency of the local product. Trade are also play important role in Australia to improving the quality, labour and environmental standard through increase competition. The increasing competitive and price pressure of the imported product forced the local industry to become more efficient with their production practices and overall operation when producing the product. Next, Australia has extremely high quantities of raw material that they are unable to use domestically in their entirety, such as the iron ore. With trade, Australia can sell the excess iron ore easily to the other country, and take the advantage of their excess raw material to benefits their country.
Lastly, trade increase the job and business opportunities in Australia. Trade increases business opportunities for the Australia local companies by creating new markets for them. Other than that, trade also help them to avoid from the unnecessary barriers and making it easier to them to export their product to the other country. Next, trade is helping the Australia to increase their country’s job opportunities. Australia government also estimates that Australia’s free trade with the other country like china, South Korea and Japan may create over than 14500 job opportunities by 2020. Furthermore, 1 out of 5 of the Australia economic is involved in the trade-related activities. For example is the logistic delivery services and courier services.
Disadvantages of trade in Australia
There are many factors influences disadvantages to Australia through trade which can directly or indirectly affects the country. First, trade causes loss of employment. Australia Trade Ministry and economists who believe that the importing goods could lead to the erosion of domestic markets and national economies, specifically when there is trade deficit occurrence. For instance, if Australian buy goods from abroad rather than domestically, it will cause greater demand for abroad and jobs will move to where the goods are produced, leading to less employment in the country.
Secondly, trade causes cultural issues. One of the disadvantages of trade culture wise include competition with local markets and inferior products, if the competition is successful and strong there is a tremendously high chance that local business can eventually lead to hundreds of jobs being lost as well as the expansion of exports products which will even further damage Australia culturally. Furthermore, Australia also depends on tourism industry which generated a huge amount of income to the country. However, too many tourist may leave too much of pollution to fragile ecosystem. Moreover, too many travellers and imports, can lead the island to lose its charm.
Lastly, trade causes potential pressures to provincial incorporation and growth in Australia. Some non-government organisations (NGOs), including the Pacific Concerns Resource Centre (PCRC) in Fiji, have disparaged the EU for its ‘heavy economic and political pressure’ to open up markets in developing countries in the Asia-Pacific. Such groups argue that Australian-EU development cooperation is focused more on eliminating trade barriers than on economic development. Concerns are over the threat this poses to the process of regional incorporation and over one-sided European competition in domestic and regional markets, causing social inequality, food insecurity, and losses of public revenue with the elimination of import duties. These issues may impact negatively on Australia’s links to this region.