Chapter 25Chapter 25

Australian Australian EconomyEconomy

Unit 25 The Australian EconomyUnit 25 The Australian Economy

Section I Agriculture

Section II Manufacturing Industry

Section III Minerals and Energy Industry

Section IV Service Industries

Section V Trade

Section VI Problems in the Economy

Section I Agriculture

Natural conditionsNatural conditions

Agricultural productsAgricultural products

FarmsFarms

The history of agricultural developmentThe history of agricultural development

1. Natural conditions1. Natural conditions

Harsh climatic - hot and dry

(the driest in the world)

The continent is large in size and rather flat

2. Agricultural products2. Agricultural products

Food and natural fibers - the world’s leading producer

Wool – the world’s largest exporter

Meat – the second

Wheat – the third

Sugar Fruits

Cotton

Rice

Dairy products

– the major supplier in the world

3. Farms3. Farms

Vary in size: big and small

Two types:

commercial rural properties (125,000)

engaging in dairying, horticultural production and sugarcane growing (one-third)

4. The history of agricultural development 4. The history of agricultural development (1)(1)

In 1821the 1st half of 20th C

1950s & 1960s

The first sale of Australian wool; thus began Australia’s wool industry

Rural production continued

Domestic protection affected the competitive-ness of Australian agriculture

4. The history of agricultural development 4. The history of agricultural development (2)(2)

In 19731970s

& 1980sup to 1986

lost preferential access to the British market

difficult to compete in the world markets

growth

2.7%

Section II Manufacturing Industry

Manufacturing in Australia began with the making of bricks, plates and clay pipes in Sydney in 1788.

Today Australia has a broad industrial base, a wide range of manufactured goods from fashion garments to food, complex electronic devices to household appliances, from base metals to precision instruments. (15% of GDP)

Section II Manufacturing Industry

Features

Inefficiency

Concentration

Foreign investment

Generally, Australia’s manufacturing industries are due to:

• its limited local market, • its geographical isolation;• high levels of tariff protection

• Australian industries are highly concentrated in terms of ownership though moderate in size.

• There are about 14 large national monopolies in particularly important industries in Australia.

• Australian manufacturing relies heavily on foreign investment.

• Foreign-owned companies tend to be more profitable than their Australian counterparts.

Section III The Minerals and Energy Industry

Abundant in minerals and metals – the world’s largest Major deposit of bauxite, mineral

sands, diamonds, black and brown coal

Coal – the world’s largest exporterCrude oil and liquefied natural gas Heavily dependent on overseas

market

New New ProblemsProblems

1. Mineral access has been restricted in the name of environmental protection and also a consequence of the granting of Aboriginal land rights.

2. The high incidence of mining-related diseases has focused people’s attention on the very real health hazards associated with the industry.

Section IV Service Industry

Including banking, advertising, transport and communications, tourism, the retail trade, community services, power and water utilities, building and construction, information.

Advantageous

• the fastest-growing sector

• information industry• service exports• tourism• international education

services

• computer-based

technology (relying

on the US, Japan or

Europe)

Disadvantageous

Section V Trade

A middle-level trading nation Trade--the backbone of the country Features: selling raw materials for

finished products (the home market is too small; the overseas goods are cheaper)

Specialization both negative and positive

Britain the US

& Japan

Trade Partners• At the end of the 1940s,

Australia's international trade was still dominated by Britain.

• After 1973, its trade with Britain dropped.

• The US and Japan have replaced Britain as major trading partners of Australia.

P.R. China

China has become China has become its top trading its top trading partner since 2008.partner since 2008.

Trade relations with China Developing rapidly 3% of total exports and the same

in imports Complementary (Australia is rich in

natural resources; China is competitive in labor-intensive products)

A great potential for future

Section VI Problems in the Economy

back

Over-Reliance on Commodity Exports

Decline of its Share in World Trade

The Decline of Manufactures due to Tariffs

ExercisesExercisesI. Fill in the blanks with

proper words or expressions.

II. Explaining the following in English.

I. Fill in the blanks with proper words or expressions.

1. Australia was once a Britain _______ colony, and now it has become one of the __________ countries in the world.

2. Manufacturing in Australia began with the making of ______ in Sydney in 1788.

3. It is estimated that ___% of all manufacturing firms are small businesses.

penalpenal

developeddeveloped

bricksbricks

9595

4. In terms of ownership, Australia industries are highly ______________. There are about ___ large national monopolies in Australia.

5. Australia manufacturing relies heavily on _______ investment. Foreign-owned companies in Australia tend to be more ___________ than their Australian counterparts.

6. Australian agriculture is till very important in the country’s economy, but its relative importance has ________ in recent years.

concentratedconcentrated1414

foreignforeign

profitableprofitable

declineddeclined

7. Australia is one of the world’s biggest producers of ________ and _______ in the energy industry.

8. The ______________ and _______ industry is now central to the Australian economy.

9. The _____ boom of the 1850s brought an increase in population and investment.

10. In the past decades, Australian service exports have _________ while imports ___________.

mineralsminerals metalsmetals

manufacturingmanufacturing serviceservice

goldgold

increasedincreaseddecreaseddecreased

II. Explaining the following in English.

1. BHP BHP Billiton is the world's largest mining company. It is also the largest company in Australia by market capitalization. It was incorporated in 1885, operating the silver and lead mine. It is also known by the nickname "the Big Australian".

2. Bass Strait

Bass Strait is a sea strait separating Tasmania from the south of the Australian mainland, specifically the state of Victoria. There are over 50 islands in Bass Strait. A number of oil and gas fields

exist there.

3. Australian service industries Service industries are also called “tertiary” industry. in Australia service industries generally include banking, advertising, transport and communications, tourism, the retail trade, community services, power and water utilities, building and construction. The service sector now includes an additional “quaternary” level, which cover the research, processing and storage of information.

4. police of protectionism in trade

Protectionism is the economic policy of

restraining trade between states. The term is

mostly used in the context of economics,

where protectionism refers to policies or

doctrines which protect businesses and

workers within a country by restricting or

regulating trade with foreign nations.

Questions for discussionQuestions for discussion1. What are the features of Australia manufacturing

industry?

2. How important is the mining industry to the Australia economy?

3. Why has Australian service industry been growing so fast in recent decades?

4. What are the factors that have affected Australia’s trading patterns and international economic relations?

5. What are the major problems associated with the Australian economy?