What Is Trading?
The trade industry encompasses the exchange of goods and services across national borders. The history of foreign trade dates back more than 5,000 years. By the 1st century BC, the silk route had been established. This was an extensive network of trade routes, connecting destinations across Asia, North Africa and Europe. The international trade industry thrived in the twentieth century with advancements in transport and communication. The World Trade Organization (WTO) is the most notable private organization that regulates trade among member nations. With 153 member nations, it represents over 95% of international trade. The International Monetary Fund (IMF) is another such organization influencing the trade industry through its policies. This resulted in the emergence of new economic powers and improved trade cooperation among nations.
As a modern trading nation, Australia is a diversified and reliable supplier of high quality goods and services to over 200 countries and a sophisticated import market for products from all over the world. Australian companies are increasingly establishing foreign affiliates to deliver services across the globe with Australian companies working 1,245 related companies overseas to sell their services in 2009-10. This was near triple the amount of 2002-03. The total value of sales by foreign affiliates was $39.9 billion, with profits up to $6.5billion which directly profit Australia by contributing the gross national income.
Why Does Australia Trade?
International Trading not only increases the national prosperity but also creates high-skill, high-wage jobs for Australians. Following the opening up of the Australian economy to greater competition and trade from the early 1980s, Australia has enjoyed almost two decades of strong and sustained growth. Among the advanced economies of the world, only Australia has achieved such strong, recession-free growth over this period.
Even during the deepest...