Globalising Australia looks at how Australia’s trade and industries are changing
Globalising Australia analyses Australia's changing position in the global economy. The report is the second edition of Industry Insights.
Chapter 1 explores the changing nature of Australia's trade. It also highlights the potential impact of global trade on Australian industries.
Chapter 2 looks at the end point of Australian exports, which are intermediate inputs of other products. The chapter also shows how services play a greater role in Australian exports than what conventional data suggests.
Chapter 3 describes how Australian manufacturing is moving toward higher value parts of the production process. These are activities such as research and development, product design and marketing activities.
Changes in global trade shaping the Australian economy
This chapter looks at the impact of global trade on Australian industries.
Australians have benefited from trade, which makes up almost 40 per cent of the economy. Trade provides more products at cheaper prices and offers huge markets for Australian businesses.
As Australia continues to integrate in the global economy, our industries will continue to restructure. Growth and rising incomes in Asia offers opportunities for our high-skilled workforce, such as in services industries.
Governments should embrace trade but have a role to help regions, industries and workers transition through these structural changes.
Digging deeper into global supply chains
This chapter looks beyond conventional trade statistics which identify the first stop for Australian exports. Many countries use Australian exports as inputs for other products. These countries then ship the new products somewhere else in the world.
The chapter tracks the value of Australian exports through the global supply chain to its end consumers. This can reveal the true sources of export demand. The chapter explains the concept of ‘value added’ exports and identifies Australia’s key trade partners using this approach.
Industries rely on each other to produce exported goods and services. The research identifies the value added by Australian industries to exports.
Manufacturing and the smile curve
This chapter explains the concept of the ‘smile curve’. The ‘smile curve’ provides a way of looking at the changes occurring across industries. This chapter focusses on how these changes affect local manufacturing activities as well as worldwide.
China is now the world leader in exports of basic manufactured goods. Local production of these manufactured goods has decreased. However, there has been a local shift toward research and development, and marketing activities. This chapter suggests that these activities are a source of economic growth for the Australian economy.