International Business : Spotlight on Australia : The Australian Economy

The Pacific nation, previously insulated from the global marketplace by high tariffs and restrictive government regulation, has increasingly opened up to international competition over the past 10 years. The country’s new alliance with the Asia-Pacific region has spurred rapid export growth. In 1990, the government implemented a far-reaching program of structural reforms including the transfer of economic power to the state and territiory governments. Continued microeconomic reform has led to substantial improvements in Australia’s business environment, boosting global competitiveness and productive potential.

Agriculture

Still strongly agrarian, Australia is one of the world’s major exporters of wheat, supplying about 13% of the international wheat market. Total wheat production for 1993-94 was estimated at 18.2 million tons. Other principle cash rops include fruit, sugar, and cotton.

Wool

Wool accounted for an estimated 14.6% of the country’s gross farm output in 1992. To insure its position as a world-leading supplier of premium natural fiber, Australia recently introduced trade expansion measures and restructured institutional arrangements in the industry to encourage greater market orientation.

Fishing

The country’s fishing zone is the third largest in the world--16% larger in area than the Australian land mass. High-priced lobster, prawns and abalone constitute about 70% of the country’s $1.4 billion commercial fishing and aquaculture industry.

Mining

Endowed with vast mineral resources and advanced mining technology, Australia isa world-leading producer of iron ore, gold, silver, bauxite, aluminum and diamonds. Coal, though, is Australia’s largest export commodity, having accounted for $8.2 billion or nearly 13% of total export receipts in 1991-92.

Manufacturing

The country’s manufacturing sector has undergone considerable change in recent years, shifting away from traditional industries like clothing and transport equipment in favor of raw material processing. The domestic automobile sector, in particular, has been adversely impacted, with Japanese imports accounting for the greatest growth in market share.

Tourism

Unique vacation spots like the Great Barrier Reef help Australia’s tourism industry attract more than 2.2 million visitors a year, mainly from Japan, Great Britian and the United States. About $26.2 billion was earned in tourism in 1991-92, $18.4 billion of which was attributable to domestic visitors.

Compiled by Laura B. Benko

Sources: The departments of the Prime Minister and Cabinet, Treasury and Foreign Affairs and Trade, Australia; Bank of America, World Information Services