Australian Report Essay, Research Paper
Essay Australian Realm
Why despite Australia?s visible advantages in natural resources, accessible
ports and a huge educated population is Australia?s GNP growing at such a stunted
rate.
Australia has many benefits of a well established economically solid
economy, certainly it is very far from a third world country with 85 percent of it?s
population living in cities. However Australia has never made a run at becoming
one of the world?s economic powers. There are clear reasons for this, however
concerning the quality of Australian manufacturing which is where huge amounts of
money are made for wealthier countries.
The problem for Australian manufacturing is that is has never had the
demand needed to bring big money into manufacturing plants. Australian
manufacturing is more locally centralized to support the needs of areas and
communities not for export. These small local companies are protected by the
government by high tariffs on manufactured goods being imported. Their largest
trade partner in recent years is Japan, and since Australia keeps high tariffs on
finished then Japan keeps tariffs on imports of manufactured goods as well. This
means that any export market that Australia could have with Japan in finished goods
is wiped out because the Australian manufacturers don?t want to pay these high
tariffs. Thus Australia keeps exporting the usual raw materials and mineral wealth to
the Japanese for low prices and stimulate their economy with their manufacturing
profits. If Australia were more saavy in their business handlings with Japan then
they could up their GNP easily. However as it is Australia is just is making it by,
while money is slipping through it?s fingers.
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