Tariffs On Imports Of Manufactured Goods example essay topic
282 words
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 savvy in their business handling's 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.
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