1. Copyright  2006 McGraw-Hill Australia Pty Ltd. PPTs t/a International Trade and Investment: An Asia-Pacific Perspective 2e by Gionea. Slides prepared by John Gionea.. 3 5–15–1 Chapter 5 Australia’s position in international trade and investment

2. Copyright  2006 McGraw-Hill Australia Pty Ltd. PPTs t/a International Trade and Investment: An Asia-Pacific Perspective 2e by Gionea. Slides prepared by John Gionea.. 3 5–25–2 Lecture plan Australia’s position in the world’s GDP and in terms of income (GNP/GNI) per capita Australia’s merchandise trade with the rest of the world Comparative trade indicators Australia’s position in the services trade Australia as a destination of FDI Australia’s direct investment abroad Australia’s top global corporations

3. Copyright  2006 McGraw-Hill Australia Pty Ltd. PPTs t/a International Trade and Investment: An Asia-Pacific Perspective 2e by Gionea. Slides prepared by John Gionea.. 3 5–35–3 The world’s largest economies (GDP in 2003 US$b.)

4. Copyright  2006 McGraw-Hill Australia Pty Ltd. PPTs t/a International Trade and Investment: An Asia-Pacific Perspective 2e by Gionea. Slides prepared by John Gionea.. 3 5–45–4 GDP of economies represented in our MBAIM, US$ billion (world ranking) WORLD Atlas method - Australia : US$522b. (13) - Hong Kong : US$127b. (30) - Malaysia : US$104b. (37) - Singapore : US$91b. (38) PPP method - Australia : US$589b. (16) - Malaysia : US$236b. (34) - Hong Kong : US$185b. (40) - Singapore : US$104b. (54) Source: World Bank at www.worldbank.org/data/databytopic/

5. Copyright  2006 McGraw-Hill Australia Pty Ltd. PPTs t/a International Trade and Investment: An Asia-Pacific Perspective 2e by Gionea. Slides prepared by John Gionea.. 3 5–55–5 Australia's rank in GNP/GNI per capita (2003: US$21,650): World Bank Atlas method 4 9 15 19 27 1960 1977 19911995 Australia’s Rank 2000 2003Year:

6. Copyright  2006 McGraw-Hill Australia Pty Ltd. PPTs t/a International Trade and Investment: An Asia-Pacific Perspective 2e by Gionea. Slides prepared by John Gionea.. 3 5–65–6 Australia’s position in international trade 1980, 2000, 2003 IndicatorsRank 1980 Rank 2000 Rank 2003* % of World 2003 Merchandise exports 182526 (17*) 0.9 (1.2*) Merchandise Imports 192019 (12*) 1.1 (1.5 * ) Services exports 2321 25 1.2 Services Imports 1422 21 1.2 * excluding intra-EU trade, with EU as an entity Source: adapted from Table 5.1

7. Copyright  2006 McGraw-Hill Australia Pty Ltd. PPTs t/a International Trade and Investment: An Asia-Pacific Perspective 2e by Gionea. Slides prepared by John Gionea.. 3 5–75–7 Exports of goods and services as a % of GDP, selected economies, 2003

8. Copyright  2006 McGraw-Hill Australia Pty Ltd. PPTs t/a International Trade and Investment: An Asia-Pacific Perspective 2e by Gionea. Slides prepared by John Gionea.. 3 5–85–8 Australia’s merchandise trade, 1993–2003, US$ billion Source: adapted from WTO Annual Report 2004

9. Copyright  2006 McGraw-Hill Australia Pty Ltd. PPTs t/a International Trade and Investment: An Asia-Pacific Perspective 2e by Gionea. Slides prepared by John Gionea.. 3 5–95–9 Australia’s top 10 merchandise export markets, % of total exports, 2001–03 Source: adapted from DFAT, Australia Economic & Trade Statistics, July 2004

10. Copyright  2006 McGraw-Hill Australia Pty Ltd. PPTs t/a International Trade and Investment: An Asia-Pacific Perspective 2e by Gionea. Slides prepared by John Gionea.. 3 5–10 Composition of Australia’s merchandise exports and imports, primary products, manufactures, other, 1991, 2003, % of total

11. Copyright  2006 McGraw-Hill Australia Pty Ltd. PPTs t/a International Trade and Investment: An Asia-Pacific Perspective 2e by Gionea. Slides prepared by John Gionea.. 3 5–11 Hirschman concentration index for Australia’s merchandise exports YearHirschman concentration index 19740.333 19840.315 19940.300 20030.266 Source: Calculated from data in DFAT, Direction of Trade Time Series, various editions

12. Copyright  2006 McGraw-Hill Australia Pty Ltd. PPTs t/a International Trade and Investment: An Asia-Pacific Perspective 2e by Gionea. Slides prepared by John Gionea.. 3 5–12 Share of intra-industry trade in Australia’s merchandise trade, 1991, 2003, by SITC category SITC SectionT (1991)T (2003) SITC 035.448.1 SITC 192.253.6 SITC 216.117.6 SITC 342.764.0 SITC 498.695.7 SITC 545.251.6 SITC 692.283.7 SITC 736.434.8 SITC 832.837.9 SITC 932.930.7 TOTAL42.445.5 Source: Calculated from ABS data, International merchandise Trade (Cat. No.5422.0)

13. Copyright  2006 McGraw-Hill Australia Pty Ltd. PPTs t/a International Trade and Investment: An Asia-Pacific Perspective 2e by Gionea. Slides prepared by John Gionea.. 3 5–13 Australia’s services trade, US$ billion, 1993–2003 Source: WTO Source: adapted from WTO International Trade Statistics 2004

14. Copyright  2006 McGraw-Hill Australia Pty Ltd. PPTs t/a International Trade and Investment: An Asia-Pacific Perspective 2e by Gionea. Slides prepared by John Gionea.. 3 5–14 Australia’s services exports by main category, as % of total services exports, 1990, 2002 Source: adapted from World Bank, World Development Indicators, 2004

15. Copyright  2006 McGraw-Hill Australia Pty Ltd. PPTs t/a International Trade and Investment: An Asia-Pacific Perspective 2e by Gionea. Slides prepared by John Gionea.. 3 5–15 Australia’s rank and % share in the world’s foreign direct investment, 1980, 2003 IndicatorsRank 1980 Rank 2003 % of World FDI 2003 FDI outflows9102.5 FDI inflows5171.4 FDI outward stock 9141.6 FDI inward stock 5112.1 Source: adapted from Table 5.1

16. Copyright  2006 McGraw-Hill Australia Pty Ltd. PPTs t/a International Trade and Investment: An Asia-Pacific Perspective 2e by Gionea. Slides prepared by John Gionea.. 3 5–16 Australia’s FDI outflows and inflows, US$ billion,1991–2003 Source: adapted from UNCTAD, World Investment Report 2004

17. Copyright  2006 McGraw-Hill Australia Pty Ltd. PPTs t/a International Trade and Investment: An Asia-Pacific Perspective 2e by Gionea. Slides prepared by John Gionea.. 3 5–17 Foreign investment in Australia by source, % share, as at end of 2003 Source: adapted from ABS, Catalogue 5352.0, 20 July 2004

18. Copyright  2006 McGraw-Hill Australia Pty Ltd. PPTs t/a International Trade and Investment: An Asia-Pacific Perspective 2e by Gionea. Slides prepared by John Gionea.. 3 5–18 Australian outward foreign affiliates of 641 Australian enterprise groups, 2002–03 IndicatorForeign Affiliates by Region EuropeAsia- Pacific Americas Number of affiliates97617081328 Employment by foreign affiliates 64,928186,23 9 70,757 Revenue from sales of goods and services (A$ million) 31,32455,95555,131 Source: ABS 5368.0 Year Book Australia

19. Copyright  2006 McGraw-Hill Australia Pty Ltd. PPTs t/a International Trade and Investment: An Asia-Pacific Perspective 2e by Gionea. Slides prepared by John Gionea.. 3 5–19 Australian companies on Fortune’s top 500 global corporations, 2003, US$b. and rank Company Revenues US$b. Rank News Corporation7.5295 Coles Myer 6.0324 National Australia Bank5.8332 Woolworths5.7340 BHP–Billiton5.6341 AMP3.5405 Telstra2.6430 Source: adapted from Fortune Magazine, 26 July, 2004