The Australian government adjust the domestic industrial structure and trade

Australia is a developed industrial country.

Industry structure is changing to exporting which makes the economy more competitive.That is because Australia is a country with extensive resources and small population that makes the labour cost is very high. The comparative

advantages of manufacturing prices are low. So Australia uses its advantage on natural resources and has become the world’s most important exporters of primary products, including coal, gold, wool, beer, iron ore, etc.The government has increased the support for exporters. The government helped and supported the small and medium enterprises to seek and develop overseas markets by providing advises and market informations. As stated in Wall Street Journal (1995) and Wall Street Journal (1987), the exports of Australia coal rose as well as export of goods and services.As Wood, Lewis and Petridis (1991) said

developing “more competitive and export-oriented manufacturing sectors” is a significant goal of “Australian labor government’s economic strategy” .As Tonts(1999) mentioned, agriculture industry is exported-oriented.

Trade policy of Australian government helps the economy more open to the world market.The Australian government adjust the domestic industrial

structure and trade, as well as make lower tariffs, reducing trade barriers and expanding the trade partners and other liberal foreign trade policy. The

Australian government also signed many different trade agreements to ensure the trade benefit with main trade partners and also join in many trade

organizations, such as WTO, to maintain the political and business relationships with other countries. Because of the geographical specificity, Australia has many trades with Asian countries. The trade policy alsofocus on the main industry trade partner, like US, UK,Chile.The trade policy of Australia shows that the openness of Australia economy is high.For instants, PACER Plus connect the Island countries with

Australia which “is consistent with Australia's objective of assisting the region to promote sustainable economic development”.(Petty 2009)And there are trade agreement between Chile, Canada, Asian countries, etc. However, there are still problems in the trade policy, such as protectionism, rampant regionalism and the failure of trade

organizations (Lloyd 2006). In some particular industry, government still protect them which makes high border in certain industry. And trade discriminations still exist. Trade originations do have some effect in connecting the relationships and start the conversation between

countries, however, the effect is limited as some originations are based on trust, and no mandatory.

Financial liberalization and economical reforms are driving financial

development and building better business environment.The strict control of financial forced the domestic enterprises turning to international market that not only reduced the effect of financial regulation but also reduced the competivenessof the financial mechanism. After the reforms in 1980’s, the financial system is more stable as the unnecessary regulations are abandoned. The financial departments are more efficient. Additionally, in order to attract more capital, the restrictions of investment environment are more relaxed, such as simplify the administrative procedures and reduce the business cost. The regulations of business make sure the disclosure of financial reporting and good structure of corporate governance. All these reduced market access barriers and encourage the competition. As AUSTRALIA: Financial Liberalisation (1999) stated the liberalization did make “a significant increase in manufactured exports”, however, Australia still “has a growing deficit in manufactures”. And there is no all good about reforms (Barton 2009). Furthermore, Wooden (2001) said the reforms and a large amount of economic growth happened at the same period, so it is hard to say wether it is because the reforms’ benefits.

Beside the financial liberalization and economical reforms, the new immigration policies influence the Australia.

TheAustraliangovernmentabandoned the “White Australia policy” and the new immigration policy has introduced a large number of

immigrants from Asia thatincreased the social and economic ties betweenAustralia and Asia. Also a large number of employment opportunities are being created as many international companies

located their headquarters in Australia. According toGloberman (2001), immigrants may be connected to home country social or business networks that facilitate trade or possess language skills or knowledge of home country customs that enable business to be conducted with the home nation. As White and Tadesse state “immigration which leads to increased cultural

pluralism and a corresponding change in a host nation's cultural identity may have positive repercussions on the nation's trade”and

“abandonment of the White Australian policy led to increased cultural pluralism and, thus, contributed to the trades. Young skilled migrants

also add new force to the labor market. So the new immigration policies not only ease the shortage of labor, but also make the relationship with other countries tighter.