Compostition and direction of Australia's trade

Composition and Direction of Australia’s trade

The composition of trade refers to the various commodities or sectoral groupings, which make up the total trade in exports and imports for a country. The direction of trade refers to those economies that buy the goods a country produces, exports, or the economies where goods are purchased from, imports. The composition and direction of Australia’s trade has changed significantly in the 1990’s as a result of a broadened export base, increased international competitiveness, rapid growth rates of neighbouring countries and a number of structural changes.

Australia is basically a commodity exporter and importer of capital goods.
Traditionally Australia has relied on exports of rural products and primary production as a result of its factor endowment and its distinct competitive advantage in the production of these goods. A major percentage of export revenue depends on the sale of primary products and will continue to do so. But co...