Humanities Alive 8 VC 3E

21.3.8

International trade policies

Governments regulate imports and exports through customs and quarantine laws, affecting various markets. Until 2011, Australia banned New Zealand apples to prevent the spread of fire blight, a contagious disease that impacts the apple market. Governments have also protected local industries by imposing tariffs on similar imported goods. For instance, in the early 1980s, a 28 per cent tariff on imported clothing made it more expensive than Australian-made products, encouraging local purchases. Over the next 30 years, this tariff was reduced, making imported clothing cheaper than locally produced items. As a result of reduced tariffs, many local clothing manufacturers have been unable to compete with

FIGURE8 A reduction in tariffs has increased the quantity of imported clothing sold in Australia.

cheaper imported clothing and consequently have had to close. A similar program of tariff reduction occurred in the motor vehicle industry. While this has had a negative impact on the Australian clothing and motor vehicle industries, the positive impact for Australian consumers is clothing and motor vehicles being much cheaper. Since the 1980s, Australian governments have also negotiated trade agreements with other countries. We agree to reduce tariffs on imports from those countries, and in return they agree to reduce tariffs on goods they import from us. Although this can make it difficult for some local manufacturers who have to compete against cheaper imported products, it can be good for our export industries and for consumers, who pay lower prices. 21.3.9 Immigration policies

Governments control goods entering and leaving Australia and regulate immigration. Immigration boosts population growth faster than natural birth rates, providing more consumers and adding to the workforce with new skills. By encouraging migration in specific industries that need skilled workers, governments influence labour markets. Additionally, Australia’s tertiary education benefits from international students, who contribute financially through tuition fees.

FIGURE9 Australia has become a major provider of tertiary education for fee-paying students from Asian countries.

21.3 SkillBuilder activity INTERPRETING AND ANALYSING DATA AND INFORMATION Use the Australian Bureau of Statistics (ABS) weblink in the Resources panel to complete the following tasks. a. Find out the current estimated population of Australia. b. Explain how this estimate is calculated. c. Select two headlines or media releases and, for each one, describe : i. three significant facts or figures included in the report ii. the trends or changes that have occurred in recent years in the facts or figures reported.

608 Jacaranda Humanities Alive 8 Victorian Curriculum Third Edition

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