1. How would your life be different if all international trade was banned?

3. Intro to our……. “Essential Question(s)”
How does specialization enhance Australia’s ability to trade with other countries?
How do trade barriers (tariffs, quotas, and embargoes) hinder voluntary trade from occurring between countries?

4. Specialization- When a country focuses on producing what they can produce and sell most easily.
Hey Australia! What is your Specialty???????
Australia specializes in the production and export of:
Coal, Iron Ore, Wool, Wheat, & Mineral Resources

5. ****EVERYBODY WINS****
SPECIALIZATION:______________________________________________________________________________________
3 Ways “specialization” benefits (helps) Australia and/or encourages worldwide trading:
_____________________________________________
When a country produces the few things that it can
produce & sell most easily.
Specializes & makes products from its own natural resources
Exports its products & makes money
Imports products it can’t make itself & other countries make money
****EVERYBODY WINS****

6. Human-Made Trade Barriers
Tariff – a Tax on Imported Goods (makes them more expensive & makes it less likely consumers will buy)
Quota- A Limit on the amount of goods that can be imported from another country.
Embargo- A total Ban on trade with a country – Usually motivated by politics to hurt another country economically.

7. TARIFF QUOTA EMBARGO Tax on imported goods
Human-Made Trade Barrier
What is it?
Why is it done?
TARIFF
QUOTA
EMBARGO
To raise the prices of imported foreign goods, so people choose to buy cheaper goods made domestically
Tax on imported goods
Limit on the amount of imported goods
To raise the prices of imported foreign goods, so people choose to buy cheaper goods made domestically
Total ban on imported goods from a country
To punish a country economically

9. Exports Imports Australian Economic Data Source: CIA World Fact Book
World Rank:
Export Partners:
Major Exports:
Imports
Imports:
Import Partners:
Major Imports:
$210.7 Billion est.2010 21
China 21.81%, Japan 19.19%, South Korea 7.88%, India 7.51%, US 4.95%, UK 4.37%, NZ 4.1%
coal, iron ore, gold, meat, wool, alumina, wheat, machinery and transport equipment
$200.4 Billion est.2010 21
China 17.94%, US 11.26%, Japan 8.36%, Thailand 5.81%, Singapore 5.54%, Germany 5.3%
machinery and transport equipment, computers and office machines, telecommunication equipment and parts; crude oil and petroleum products

11. Return to our……. “Essential Question(s)”
How does specialization enhance Australia’s ability to trade with other countries?
How do trade barriers (tariffs, quotas, and embargoes) hinder voluntary trade from occurring between countries?