Comparative Study of Trade Between Australia, Usa and Japan

TABLE OF CONTENTS

Executive Summary------------------------------------------------------------2

Introduction-----------------------------------------------------------------

1. Comparative Snapshot of USA, Japanese, and Australian Economics--------------------------------------------------------------------------4

2. Comparative Historical Profile of the USA, Japan and Australia's Economic Development--------------------------------------------------------7

3. Overview of Australia's International Trading Pattern with USA and Japan-----------------------------------------------------------------------------

4. Operations of Labor Market in the USA, Japan and Australia-----13

Conclusion-------------------------------------------------------------------1

Bibliography--------------------------------------------------------------------1

EXECUTIVE SUMMARY

This paper reviews and compared the economic performances of Australia, Japan and USA. Overall, these three countries enjoy very healthy economic activities. The report also highlights the similarities between these three highly developed economies. They all have relatively stable and growing economies. However, these countries also have significant differences in term of their population, areas of production specialization, short term economic management practices and their labour market operations.

Australia with its prosperous, western-style mixed economy with a high per capita GDP enjoys a very strong and relatively constant trading relationship with Japan and USA. The report shows that Australia and Japan enjoy a very long and constant trade relationship. In other words, the report found that Japan has long been, and is likely to remain for a considerable period, Australia largest export market for goods and services . On the other hands, the report shows that USA is and remains one of Australia's top merchandise trading partners, its largest services trading partner and the major source of foreign investment .

The final part of the report found that different labour market operations have different impact on the level of the economic performances of each individual country.

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INTRODUCTION

The world has a long history of international trade among nations that can be traced back to early civilizations. Today, the practice of trade among nations is growing by leaps and bounds. There is hardly a country in the world that has not been influenced in some way by the growing trade among nations. Countries engage in international trade for numerous reasons. Some countries are deficient in critical products and services. To make up for these various deficiencies, countries must get involve in international trade to obtain the resources necessary to produce the goods and/or services desired by their citizens.

Likewise, Australia, Japan and USA engage in international trade for reasons that are very important to each of them. This report will endeavor to compare the economic performances of these three countries, identify their strengths and weaknesses and comment on the implications of these developments on business in Australia.

To achieve the above purpose, this paper will be organized as followed: first part will provide a comparative snapshot of the general background information about the three countries. After a comparative historical profile of these countries' economic development over the last 40 years in part two, an overview of Australian of international trading pattern with both countries will be considered in part three. Part four of this paper will provide a brief and comparative comment on the operation of labour market in the three countries.

1. Comparative Snapshot of USA, Japanese, and Australian Economies

AUSTRALIA JAPAN USA

Population 20,264,082 127,463,611 298,444,215

Population Growth Rate 1.3% -0.02% 0.91%

Surface Size 7.692 thousand sq. km. 377,864 sq. km. 9,364 thousand sq km

Population Density 2.6 persons per square kilometer for total area 337 persons per square kilometer for total area 31 persons per square kilometer for total area

Annual Inflation Rate 3.5% 0.2% 3.6%

Unemployment Rate 4.9% 4.1% 4.4%

GDP Real Growth Rate 3.1% 2.8% 3.4%

Export (% of GDP) 21.1% 16.5% 11.1%

Current Account Balance (% of GDP) -5.6% 3.9% -6.6%

Saving Rate (% of GDP) 16.80 12.10 11.50

Official Interest Rate 6.25 0.25 5.25

Representative Commercial Interest Rate 8.1% 6.62% 7.0%

Urbanization Rate 92% 68% 80%

Exchange Rate Against the Euro 1.68 145.9 1.26

Percentage changes in the 'local' currency cost of the Euro over the last year -5.60 -13.32 -11.99

Principal 3 trading partners in order of importance (export ) Japan 20.4%, China 11.9%, South Korea 7.7% US 22.5%, China 14.3%, South Korea 7.8% Canada 23.4%, Mexico 13.3%, Japan 6.1%,

Principal 3 trading partners in order of importance (import) China 13.8%

USA 13.6%

Japan 10,3% China 20.5%

USA 11.8%

Saudi Arabia 6.4% Canada 17.2%

China 14.6%

Mexico 10.2%

Principal Exports coal, ion ore, gold, bovine