The Analysis On Influencing Factors Of Australian Agricultural Products Export Trade

Comparative advantage theory argues that international trade is based on theexistence of comparative advantage of products from all over the world, countries shouldaccording to their comparative advantages to specialized production and participate ininternational trade. The theory is also suitable for the agricultural products trade betweenChina’s and Australia. China is vast territory and abundant resources, but due to the largepopulation base and faster growing speed, the per capita resource level is lower,agricultural production is mainly labor-intensive agriculture; While Australia, sparselypopulated, rich in resources, per capita resource index is higher, so mainlyresource-intensive, and at the same time, the level of industrialization and mechanizationof agricultural are also relatively high. The contrast of the two countries shows that ifthey can play to their respective agricultural advantages to form trade complementarities,both countries can achieve benefit in the international trade of agricultural products.Therefore, establishing agricultural trade relations with Australia, establishing stabletrade mechanism, giving full play to the comparative advantage of both sides, canpromote the healthy development of economy, the two countries for the adjustment ofdomestic agricultural production structure, perfect the price forming mechanism, andimprove people’s living level is of great significance.This essay mainly focuses on the export of Australian agricultural production,analyses the development of the agriculture trade in Australia, the trend and the keyelement that affects the development. There are five parts of the essay, first isintroduction which indicates the background and the method of the essay, this part alsogives some literature review on the topic. Then the following chapter fully describes thedevelopment of the agriculture trade in Australia, the importance of the country plays inthe global farm production market, as well as some data of the trade, the change in exportstructure and target areas. The second and third chapters analyse the factors that effectthe increase of the export of Australia by CMS model, while the key factors are demandeffect, competition effect, structural effect and the overall level. The fourth chapter is epilogue part, giving some suggestion about China and Australia’s agricultural trade, andsuggesting to speed up promote the establishment of China-Australia free trade area, toefforts to form a mutually beneficial and mutually beneficial long-term mechanism.