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Academic Journal of Business & Management, 2023, 5(26); doi: 10.25236/AJBM.2023.052614.

The Influence of Economic Integration on Australian-China Trade

Author(s)

Nie Yilin

Corresponding Author:
Nie Yilin
Affiliation(s)

Monash University, Victoria, Australia

Abstract

The composition and magnitude of trade among countries are affected by comparative advantage, stage of development, degree of economic integration, exchange rate policy and other factors. This paper reviews the changes in the scale and structure of imports and exports between China and Australia in the past three decades. It explains the composition of trade between the two countries from the theory of comparative advantage and discusses the important role of the deepening of economic integration on the trade volume. Finally, with the stage of China's economic development and the impact of trade policy on Australia-China trade, it is pointed out that the exchange rate policy has reduced China's terms of trade. On the contrary, Australia 's terms of trade are conducive to the Australian economy.

Keywords

Australian-China trade, Comparative advantage, Economic integration, Terms of trade

Cite This Paper

Nie Yilin. The Influence of Economic Integration on Australian-China Trade. Academic Journal of Business & Management (2023) Vol. 5, Issue 26: 89-94. https://doi.org/10.25236/AJBM.2023.052614.

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