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.