Domestic and International Business Trade Environment

A Study on Trends and Strategies in Australian Export and Import, Introduction to Incoterms

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Abstract

The ever increasing income of the Asian economies and the expanding population are some

big trends in the International economy, which would have a big impact on Australian trade.

The GDP for the developing Asian region is expected to be close to 6.8% for 2014 as

compared to 2.2% predicted for the advanced economies (Pash, 2014). Thus, it is important

for Australia to work in close integration with the Asia-driven economy. The Australian

economy is closely connected with Asia on three dimensions: trade, people and capital. It is

known fact that the Australian exports to Asia have been growing very fast, largely because

of the growing demand for resources in China. Incoming capital investments from Asia have

also seen a huge increase of about 50% in the last ten years (Pash, 2014). At present,

Australia is a net importer of capital. These increasing inflows of capital are driven by the

motive to seek huge returns in a low-risk environment. This sentiment can be used to fuel the

growth of the Australian economy, with particular sectors like tourism, education, real estate

and financial services. This growing trend can also adversely impact the local players due to

stiff competition from the Asian players who might capture a huge share in the Australian

market. On the other hand, Australian exporters may find a huge gain because of the

extremely large consumer base present in Asian markets.