Globalisation and trade liberalization are worldwide phenomena that hav

Globalisation and share relaxation behavior are worldwide phenomena that have importantly changed Australias trading relationships oer the ultimo decades.Globalisation and allot liberalization are worldwide phenomena thathave significantly changed Australias trading relationships over thepast decades. Traditionally , Australia is a elevatedly defend countryagainst foreign competitors by using methods of protection such astariffs and subsidies. However, since the 1980s Aust and many of theworld economies has faced substantial reductions in trade barriers inorder to promote what we known as Free Trade. Australia graduallyreduced its trade protections, which can be any actions by mattergovernments that will give an artificial competitive advantage todomestic producers over foreign producers. The changes to the freetrade and protection policies has caused a significant returns inthe number of Free Trade Agreements (FTA) and a shift in Australiastrading relationships, which in tu rn has affected firms, individualsand also the Australian government.Since the mid(prenominal) 1970s, Australia has started to reduce protection bycutting tariffs, tax on imports, from comely tariff levels of 23% in1968 -69 to 4.4% in 2001. Traditionally, the highly subsidizedindustries (any prepare of support to keep domestic industriescompetitive) are sectors such as motor vehicle and textile, clothingand footwear (TCF). These industries have a fixed imprint tariff levelbetween 2000 - 2005, to allow them to restructure and become ofttimesinternationally competitive. Australias tariff reduction levels havegone way infra those required by international trade agreement such asWTO agreement and the APEC. Australia in the last ... ...d this would affect the voting ratiosfor the government as benefits of tariff reductions and free trade advance would take a much longer period to arrive.Through the significant change of Australias protection levels andthe promotion of free trade, it is obvious that Australias majortrading partners is shifting from European countries to the hightrading potential Asian countries. This is due the enormous demand inmany developing countries, which results in a greater market forexport. This has brought a positive impact on Australias primary baseindustries such as minerals, therefore increasing the amount of exportrevenue for Australia. Free trade and the reduction in Protectionresult in the better process of export as it generates Australiaseconomic growth, which in turn benefits firms, individuals and thegovernment sectors overall.