1. Name the nation you have chosen
2. What goods and services are traded between this nation and Australia? (list the top 10 imports and exports traded) (3 marks)
The top 10 goods and services traded (starting from the most traded) are:
1. Coal (export)
2. Iron ore and concentrates (export)
3. Passenger motor vehicles (import)
4. Beef f.c.f. (export)
5. Aluminium (export)
6. Refined petroleum (import)
7. Copper ores and concentrates (export)
8. Coal petroleum (export)
9. Goods vehicles (import)
10. Food and live animals (export)
The information above, as well as the total revenue from these imports and exports for 2010-11 are depicted below.
According to the Imports and Exports from 2006-11, the top ten imports and exports from Japan has not changed overtime, indicating the stability of these goods and services traded from Australia and Japan. Demand for some goods and services has increased and decreased, but the top ten traded has not changed over the past 5 years.
3. What is the current value (2011) of Australian exports to this country? (2 marks)
The current value is $50 441 000 000 (2011) according to ABS.
4. What is the current value (2011) of imports that Australia buys from this nation? (2 marks)
The current value is $18 003 000 000 (2011) according to ABS.
5. Outline the changes in these values form 2001 to 2011. Include graphs to support your answer. (4 marks)
Imports from Japan has been consistently increasing over 2001 – 2011. This is shown by the red trendline, marking the steady growth of imports from Japan. Imports in 2008 showed a slight increase, with the impact of the GFC in May 2009 producing a major decrease. The significant drop in imports from Japan in April 2011 was due to the earthquakes that hit the Miyagi prefecture, as the Japan government banned all shipments of beef cattle due to fear of radioactive contamination.
Exports to Japan has also been consistently growing, as shown by the red trendline. The substantial increase in October 2008 was due to the Bank of Japan’s decision to suspend selling of stocks, which resulted in Japan becoming heavily reliant on exports.
6. Analyse the impact of these changes on Australia business, consumers and investors. Who has been advantaged and who has been disadvantaged? (5 marks)
Australian businesses are advantaged during the significant increase during October 2008, due to Japan’s short term reliance on imports. This includes higher demand for coal and iron ore, due to Japan’s few natural resources. Businesses that are disadvantaged overall would be the agricultural sector, as Japan has one of the most protected farms in the world.
Consumers were disadvantaged during the substantial decrease in imports from Japan during April 2011, which was as a result from the Japan earthquakes. This meant that the supply of Japan beef would have dropped a considerable amount, due to the Japan government’s decision to temporarily ban beef from the earthquake areas due to fear of radioactive contamination.
Investors wanting to trade the Japanese yen would have had a major disadvantage during October 2008, as the Japanese government had decided to suspend selling stocks to ensure their market stability. This action taken was in effect until the end of March 2010. Banks were also disadvantaged by the damaged consumer confidence in global stock markets, as shares suffered losses throughout 2008 to early 2009.
7. Examine the Australian government’s attempt to manage these trends in trade. (eg. Trade…