Trade Stage 5 - GTANSW Ian Sanders Education Advisor Austrade March, 2007

Geography Stage 5 Stage 5 Focus Area 5A4, Outcomes: 5.6 and 5.7 Australia’s regional and global context  regional and global trends  regional and global links Strategies for a better future  ecologically sustainable development  trading agreements and treaties Electives: Australia’s Neighbours, World Political Geography, Communities, Work and Settlement, Development Geography.

Where we are: AAP Newswire 06/03/2007

Export benefits: employment opportunities The changing nature of work Internet for sales & marketing Niche products & markets (p10 11/12) Smart use of technology (p78+ 11/12) Supply chains (p9+ 11/12) Our time zone for services (p9 11/12) Proximity to Asia Emerging industries Austrade exporting poster series + activities (employment opportunities p3, growth opportunities p5 & future openings p7) Year 11/12 book pp 30-32

Australian exporters are quick to pick up the Internet Exporters Non-exporters Internet connections

Technology has also played a role and an Advanced Australia has fared well

Niche Exports Adelaide Advertiser, 11/07/06

Niche Exports Daily Telegraph, 29/06/06

Emerging Industries Burnie Advocate, 13/07/06

Asia’s rise means that we are now in the right place at the right time: ‘The Tyranny of distance’ has become ’The Power of Proximity’

Who we sell to:

Who we buy from:

Broad export categories ABS, December, 2005

Barriers to Trade Cultural differences Political instability

Barriers to Trade Quarantine

Barriers to Trade Local regulations Subsidies

Trade liberalisation and protection Trade protection issues - tariffs Protection in high-income countries (average tariffs)

Trade agreements Multilateral agreements – WTO Regional agreements – APEC Bilateral agreements – Free trade agreements (FTAs – NZ, Singapore, Thailand, USA) Find information on the four current agreements at: fact sheets, minister’s speecheswww.fta.gov.au The status of current negotiations can be found at: feasibility, negotiationswww.dfat.gov.au Austrade:

Trade agreements

China Australia trade Before entering the WTO in 2001, China’s average tariff rate was 15.3% but has been steadily reduced to 9.0% in The tariff on most mechanical products is 5% The average tariff on agricultural products is 15.3% Australia has an average tariff of 3.5%, with 85% of tariffs falling between 0 and 5%. An FTA could boost trade by US$18-64 bn over

China’s tariff regime

Sustainable development and exports Areas in which Australia has internationally- recognised expertise include: arid land and water resources management clean mining and mineral processing pollution monitoring and controlling waste management organic foods renewable energy contaminated site remediation.

Triple bottom line reporting Few currently report on triple bottom line Business responsibilities & accountabilities will adapt to suit business structures and activities in the post- industrial era Growing interest & feasibility studies Multinationals now adopting triple bottom line - WMC Resources ( Sustainability Report), Shellwww.wmc.com Transparency and accountability by business for their economic, social & environmental performance

Sustainable futures Source : DFAT, 2000

Global benefits: higher wages Foreign manufacturers pay more than local firms, $US ‘000s, 1996 See Globalisation poster activities booklet p8

Globalisation issues - poverty Globalisation poster series – poverty p16 World poverty 1820–1998

Globalisation FOR: Global, open economies perform better with improved living standards, reduced poverty, increased literacy Better health care leading to longer life expectancy, reduced infant mortality Reduced costs and greater access to goods Interdependence encourages peace and democracy. Improved environmental awareness, better technology

Globalisation AGAINST: Restructuring causes loss of traditional skills, job loss Increased migration, brain drain, worsened labour conditions Uncompetitive economies may fall further, vulnerable to downturns Health impacts – migration, cigarettes, pollution Monoculture, land clearing

Globalisation issues Austrade globalisation posters and activities Globalisation means … Globalisation in history Globalisation drivers Globalisation and the world economy Globalisation and culture Globalisation and world politics Globalisation and the environment Globalisation and poverty

Austrade education resources Exporting for the Future Years 9/10 Exporting for the Future Years 11/12 Trends in Australia’s Trade – statistics Understanding the Global Economy – articles Going Global export strategy game CD – references from Austrade & DFAT Posters plus activities booklet with answers Market research resources online Web Quests and case studies online

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