The economy of Australia - Research Paper Example

Australia is a small to mid-sized industrialized nation, with a population of approximately 22 million (90% of which live in urban settings, increasing by on average 1% anually) growing at an average rate of 1.148%, fueled almost entirely by a high rate of net migration (CIA). It has a purchasing power parity GDP of less than one trillion dollars, though its nominal GDP in terms of exchange rate is 1.236 trillion dollars, growing at an estimated 2.7% annually as of 2010 (CIA). Family income statistics in Australia are fairly average for a developed country.

Average family income is in the range of 55,000 USD annually, though differing drastically depending on which part of the country the person lives in. Australia has a relatively even distribution of wealth amongst its population. The GINI index, which is a measure of wealth disparities in a country, gives Australia a score of 30.5, only .1 above the European union, and 112th largest score in the world (in the GINI index a lower score means better or more even distribution of wealth). For comparison, Sweden, with the best GINI score has a 23, while America, with a terrible score for a developed country, has a score of 45 (CIA).

Australia, as a country the size of a continent (it is the 6th largest country in the world) has a wide variety of natural resources including coal, iron, precious metals, diamonds, rare earth elements, natural gas and petroleum (CIA). IT is the largest net exporter of coal in the world, and accounts for 29% of global coal exports (CIA). Australia has highly developed transportation and communication infrastructure, with wide access to high speed internet and public transpiration in cities (CIA).

Its primary mode of public transpiration is bus (CIA). Its infrastructure is much worse in rural regions, which have access issues. Australia has very strict and well adhered to employee protection laws, with only a very few countries having better (Global Edge). It has much more protection for long term than temporary workers, however, and this causes the perception of abuse amongst temporary and immigrants workers, usually from other pacific Islands (Global Edge). Salaray and benefits vary highly depending on employment sector, though public health care is less accessible than almost any other developed country, not being government funded (Global Edge).

Australia’s principle industry is service, like most developed countries, though this is supplemented by mining, equipment manufacturing and steel foundering. Foreign investment opportunities are many, especially in increasingly lucrative natural resources, but also in a burgeoning telecommunications industry (Global Edge). Expectedly, Australia’s primary exports are its natural resources, including coal, iron ore, gold and meat, though also agricultural products like meat, wool, and wheat because of its huge food surplus (CIA).

It also exports machinery to its less developed neighbors (CIA). Australia does not produce enough oil for its own consumption, so imports petroleum heavily, along with advanced technologies it does not produce natively (CIA). It exports 210 Billion USD annually, while importing approximately 195 billion USD. It has relatively high trade tariffs and customs, though few embargos. Is not part of any major free trade agreements with other developed nations (Global Edge). Australia has a labor force of 11.

87 million, 43rd largest in the world, which is primarily engaged in services (CIA). It has an unemployment rate of 5% (CIA). Australia has a fully developed system of distribution, with retailers and wholesalers usually operating at approximately a 50-100% markup to cover overheads, though relatively few import and export agents for a country of its size (Global Edge). Its retailers and wholesalers vary widely from small to huge operations, though all operate on credit if needed (Global Edge).

Australia has a well developed media, available everywhere in urban areas and in most rural ones, with many domestic local broadcasts (CIA). Its media costs tend to be fairly average for an industrialized nation (Global Edge).Works Cited"CIA - The World Factbook."  Central Intelligence Agency. Web. 19 Oct. 2011. ."Australia: Introduction: GlobalEDGE: Your Source for Global Business Knowledge." Home Page GlobalEDGE: Your Source for Global Business Knowledge. Web. 19 Oct. 2011. .