Australia Must Diversify the Economy Essay

Australia Must Diversify the Economy Essay

Length: 2231 words (6.4 double-spaced pages)

Rating: Powerful Essays

Open Document

Essay Preview

The economist describes the definition of a banana republic as “a country dominated by foreign investment and dependent on a single export commodity” (The Economist. 2014). This definition has some correlation to the Australian economy as over previous year’s Australia has experienced a commodity boom which has dominated and under pinned the nation’s economy. The development of the natural resources industry in Australia has grown the economy and has become the number export for the nation (Figure 1). Australia’s reliance on the commodity industry does not support long term economic stability for the nation, commodity prices are falling as the developing world industries slow down. The Australian government must continue with the development of the commodity industry but must also invest into developing new industries that will ensure the economic growth of the nation continues and to ensure the nation is not dependent on the natural resources of the country.

Figure 1: Composition of Exports 2009(Ian McCauley 2012)
In the past the nation has been a significant exporter of agricultural products such as grain and livestock, it was able to make advancements in the manufacturing industry by imposing high tariffs on imported goods. This was until internationally and locally it was not viable to continue with these economic policies and the Australian market was opened up with the lowering of tariffs and the floating of the Australian dollar. While this benefited the economy with free trade agreements, foreign investment and a diversification of the export base it also contributed to the demise of other industries (Sara Cousins 2013). Throughout Australia’s economic history mining and the exports of commodities have been ...

... middle of paper ...

...conomy–well prepared for the challenges ahead. [ONLINE] Available at: [Accessed 04 March 2014].
(The Economist. 2014). The Economist explains: Where did banana republics get their name? |. The Economist explains: Where did banana republics get their name? | The Economist. [ONLINE] Available at: [Accessed 28 February 2014].
(Zheng, Bloch 2012) Australia’s Mining Productivity Paradox: Implications for MFP Measurement by Simon Zheng, Harry Bloch: SSRN. 2014. Australia’s Mining Productivity Paradox: Implications for MFP Measurement by Simon Zheng, Harry Bloch: SSRN. [ONLINE] Available at: [Accessed 03 March 2014].

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Three Important Facts About BHP Billiton a Multinational Mining Company in Australia

- THREE IMPORTANT FACTS ABOUT BHP BILLITON: CARRYING OUT OPERATIONS SAFELY AND TAKING CARE OF PEOPLE SAFETY The safety and health of people is core to every aspect of business. People return home safe and well at the end of day and enabling them to end their working life fit and healthy are central to everything industry do. There operations are in system in place to identify, manage and effectively respond to foreseeable crisis and emergencies. Collectively, these requirements are designed to enable our operations to safely return to full function as possible....   [tags: energy, climate change, environment]

Powerful Essays
1757 words (5 pages)

Essay on The Australian Economy

- Many opportunities and challenges await the global economies of today. The balancing of one country’s financial position has the capability to bring down an entire nation in an instant. One country’s financial gains require financial losses of another. The Australian economy is currently undergoing a major shift that is leading to low productivity and increased unemployed. Despite its current growing pains, the Australian economy remains resilient and is positioned to continue into its “23rd year of uninterrupted annual economic growth”....   [tags: Australian Economy]

Powerful Essays
1495 words (4.3 pages)

Essay on The Rise of Fuel in Australia

- 1.0 Article Summary The Australian Broadcasting Corporation’s (ABC) news article titled, “Petrol price soars, more pain at the pump ahead,” discusses the rise in the price of fuel and its effect on Australian motorists. This article also discusses how this rise in the price of fuel occurred, mainly focusing on its effect on consumers (Janda 2014). 2.0 Introduction The cost of fuel had risen by 6 cents to 158.1 cents in the week of January 5, which is quite a fast rise in price. It was reported by CommSec to be the fastest increase in fuel price records since 2004....   [tags: petrol, australian economy]

Powerful Essays
1204 words (3.4 pages)

Essay about Australia 's Current Economy : Australia

- Australia’s Current Economy Australia’s economy is in an envious position, on the international stage, coming on 20 years of continuous economic growth, due to the mining boom, and prudent economic management of both monetary, fiscal and regulatory policy. But in saying that by Australian standards we are in a sluggish position with slow growth (2.5%), High unemployment (6.1%) and low confidence from consumers and businesses. This is further weighed by a large current account deficit fuelled by foreign debt....   [tags: Inflation, Economics, Public finance, Tax]

Powerful Essays
1178 words (3.4 pages)

Australia, A Great Country For Jhal Trader Company Essay

- Introduction Australia would be a great country for JHAL Trader Company to enter. With the great business environment there and the strong USD dollar, it seems profitable for JHAL to make Australia a new sales territory. JHAL imports their products from China, Japan and Korea, so with Australia’s proximity to these countries, costs may go down significantly when expanding into Australia. Even though Australia is relatively far away from the United States, their business cultures are similar. This is good because it would not be hard for sales executives to assimilate into the Australian culture....   [tags: Australia, Economy of Australia, Pacific Ocean]

Powerful Essays
1227 words (3.5 pages)

The Commonwealth Of Australia Essay

- The Commonwealth of Australia, created in 1901 when six British colonies chose to federate, is one of the oldest continuous democracies in the world and is made up of nine parliaments. There are six state parliaments, two territorial parliaments, and one Federal parliament. The country initially faced trouble with the electoral tradition that it carried over from its British roots, it later went on to create a system that would form the basis for the electoral procedures of many modern-day democracies....   [tags: Elections, Democracy, Election, Australia]

Powerful Essays
1003 words (2.9 pages)

Australia Movie Poster Analysis Essay

- Australia is considered as a young country when comparing to other countries as it has been founded around 200 years ago. Today, it is still in the trouble of some sort of identity crisis, trying to find its true identity. To try to define what really is considered as Australianness means one will have to take the plunge. For instance, in Australia the movie, director Baz Luhrmann made a great effort in telling an epic story of Australia but it still falls into the category of imprudent cliché of Australianness....   [tags: Australia]

Powerful Essays
950 words (2.7 pages)

Loanable Funds Market In Australia Essay

- 1. Introduction: The Reserve Bank of Australia is considering an increase in the target cash rate by 25 basis points in the near future. It is the intention of this report to analyse the positive and negative impacts of a rise in interest rates on the loanable fund market in Australia. In order to analyse the impacts of an increase in interest rates on the loanable fund market, the reasons behind the possible rate rise in the near future will be looked upon. Charts and diagrams have been used to illustrate the intention of this report and it is hoped that by looking at these vital elements the intended user will be able to understand the issue more thoroughly and follow the analysis behind i...   [tags: Economics Economy Australia]

Powerful Essays
1910 words (5.5 pages)

About Australia Essay

- About Australia Australia, island continent located southeast of Asia and forming, with the nearby island of Tasmania, the commenwealth of Australia, a self governing member of the Commenwealth of Nations. The commenwealth of Australia is made up of six states--News south Wales, Queensland, South Australia, Tasmania, Victoria, and Wester n Australia--and two territories--the Australian Capital Territory and the Northern Territory. Australia, including Tasmania but excluding external territories, covers a land area of 7,682,300 sq....   [tags: Australia Economy Population Culture Trade Essays]

Powerful Essays
4459 words (12.7 pages)

Australia's Economy Essay

- Australia's Economy Australia became a commonwealth of the British Empire in 1901. It was able to take advantage of its natural resources to rapidly develop its agricultural and manufacturing industries and to make a major contribution to the British effort in World Wars I and II. Now, Australia has a prosperous Western-style capitalist economy, with a per capita GDP at the level of the four dominant West European economies. Rich in natural resources, Australia is a major exporter of agricultural products, minerals, metals, and fossil fuels....   [tags: Papers]

Powerful Essays
982 words (2.8 pages)