Good afternoon every one, its great to see you all here. My name is Paul, and this is our group member Ivan and Sam. Today we are here to talk about the impact and issues based on the free trade agreements of Australia Government with both Japan and Korean. And if you have any question please feel free ask questions as we go along. So, do you guys know who is this man? A professor that teaching at UTS? He is the Australian trade minister Andrew Robb.
So objectives, firstly Ivan will discuss about the main changes of Australia’s trading between Japan and Korea from the past. Next I will discuss about the comparative advantage of the three countries and which country that gets the most benefit, and analysis that who is the winner from these free trade agreements. Finally Sam will conclude about are the three countries trading equally. At last, we will be having a discussion time
So, what is actually a comparative advantage and disadvantage? Comparative advantage that means a firm that can produce a product with a lower opportunity cost than the competitors. Such as Japan have the ability to produce cars in a lower cost and also with a high quality. So, comparative disadvantage. And that’s opposite with advantage, which means a firm that has higher opportunities cost to produce a particular product. Such as Japan has a really high opportunity cost in natural resources.
Australia Comparative advantage, Australia has many advantages in the field of trading, such as agriculture, natural resources and education. Agricultural, Australia has a very high quality products in agricultural that are already very famous around the world, because of its clean and green environments. Mining industry, Australia is one of the largest mining country in the world, because they has very rich in mineral resources, and especially in Coal and Iron ores, they occupy 50% of the world market. Education, I think everyone here agrees with this, because this is why we are here, Australia has a good social environment and world-class quality of education, such as University of Sydney and UTS they are the great examples.
Korea comparative advantage, Korea is a country that produce high technologically produts, and Samsung is one the very famous one. Refined petroleum is the second biggest export of Korea, but not with a huge amount. And I don’t know if you guys know this, Korea is actually the world’s largest exporter for...