Chapter 5 - Australia’s position in international trade and investment. The main goals of this chapter are to: Examine the changes in Australia’ position in the world economy, in terms of size and income per capita; outline the main changes in Australia’s geographic distribution of exports and imports and identify the main reasons for those changes; analyse the role of foreign direct investment in Australia’s economy.
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Chapter 5 Australia’s position in international
trade and investment
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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
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An Asia-Pacific Perspective 2e by Gionea Slides prepared by John Gionea. 5–3
The world’s largest economies
(GDP in 2003 US$b.)
1 US 10,881 9 Canada 834
2 Japan 4326 10 Mexico 626
3 Germany 2401 11 Korea Rep 605
4 UK 1795 12 India 599
5 France 1748 13 Australia 518
6 Italy 1466 14 Netherlands 512
7 China 1410 15 Brazil 492
8 Spain 836 World GDP: 36,460
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GDP of economies represented in our MBAIM, US$ 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/
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Australia's rank in GNP/GNI per capita (2003: US$21,650): World Bank Atlas
method
4
9
15
19
27
27
1960 1977 1991 1995
Australia’s Rank
2000 2003 Year:
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An Asia-Pacific Perspective 2e by Gionea Slides prepared by John Gionea. 5–6
Australia’s position in international trade 1980, 2000, 2003
1980
Rank 2000
Rank 2003*
% of World
2003
Merchandise exports
(17*)
0.9
(1.2*)
Merchandise Imports
(12*) 1.1 (1.5 * )
Services
Services Imports
Source: adapted from Table 5.1
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An Asia-Pacific Perspective 2e by Gionea Slides prepared by John Gionea. 5–7
Exports of goods and services as a
% of GDP, selected economies, 2003
Australia New Zealand
Sweden Canada China Hong Kong Malaysia Singapore
% of GDP
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Australia’s merchandise trade,
1993–2003, US$ billion
0 10 20 30 40 50 60 70 80 90 100
Exports Imports
Source: adapted from WTO Annual Report 2004
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Australia’s top 10 merchandise export
markets, % of total exports, 2001–03
2.6
5.2 6.7 7.2 7.9 9.4
18.6
3.0 4.0 4.0
Indonesia Hong Kong Taiwan Singapore
UK New Zealand
China Korea Rep.
US Japan
%
Source: adapted from DFAT, Australia Economic & Trade Statistics,
July 2004
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An Asia-Pacific Perspective 2e by Gionea Slides prepared by John Gionea. 5–10
Composition of Australia’s merchandise
exports and imports, primary products,
manufactures, other, 1991, 2003, % of total
0 10 20 30 40 50 60 70
Primary products
2003
0 10 20 30 40 50 60 70 80 90
Primary products
1991 2003
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An Asia-Pacific Perspective 2e by Gionea Slides prepared by John Gionea. 5–11
Hirschman concentration index for Australia’s merchandise exports
concentration index
Source: Calculated from data in DFAT, Direction of Trade Time
Series, various editions
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An Asia-Pacific Perspective 2e by Gionea Slides prepared by John Gionea. 5–12
Share of intra-industry trade in Australia’s merchandise trade, 1991, 2003, by SITC
category
Source: Calculated from ABS data, International merchandise Trade (Cat No.5422.0)
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Australia’s services trade,
US$ billion, 1993–2003
0 5 10 15 20 25
Exports Imports
Source: WTO
Source: adapted from WTO International Trade Statistics 2004
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An Asia-Pacific Perspective 2e by Gionea Slides prepared by John Gionea. 5–14
Australia’s services exports by main
category, as % of total services exports,
1990, 2002
0 20 40 60
Financial
Computer/i nfo/comm'n
Source: adapted from World Bank, World Development Indicators, 2004
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An Asia-Pacific Perspective 2e by Gionea Slides prepared by John Gionea. 5–15
Australia’s rank and % share in the
world’s foreign direct investment,
1980, 2003
1980
World FDI 2003
FDI outward
FDI inward stock
Source: adapted from Table 5.1
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An Asia-Pacific Perspective 2e by Gionea Slides prepared by John Gionea. 5–16
Australia’s FDI outflows and inflows, US$ billion,1991–2003
-2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0
US$ Billion
Source: adapted from UNCTAD, World Investment Report 2004
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An Asia-Pacific Perspective 2e by Gionea Slides prepared by John Gionea. 5–17
Foreign investment in Australia by source, % share, as at end of 2003
Source: adapted from ABS, Catalogue 5352.0, 20 July 2004
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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. 5–18
Australian outward foreign affiliates of 641 Australian enterprise groups, 2002–03
Asia-Pacific
Americas
Number of affiliates 976 1708 1328
Employment by foreign affiliates 64,928 186,23 9 70,757 Revenue from sales of
goods and services (A$ million)
31,324 55,955 55,131
Source: ABS 5368.0 Year Book Australia
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An Asia-Pacific Perspective 2e by Gionea Slides prepared by John Gionea. 5–19
Australian companies on Fortune’s top 500 global corporations, 2003,
US$b and rank
National Australia Bank 5.8 332
Source: adapted from Fortune Magazine, 26 July, 2004