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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (67053)	8/6/2005 8:24:04 PM
From: Elroy Jetson	Read Replies (1) \| Respond to of 74559

Export is currently a mixed bag for Australia. Mining and energy exports are quite strong, but farming and farm exports have been seriously hurt by the current drought. In a downturn, one of the biggest strengths of Australia is their strong internal demand. This is the result of the fact that Australia is more nearly a "middle-class" society than most others. Assets and income are far more evenly distributed than other nations. Not too many years ago, the export sector was dead with mines shut-in and food exports shut out of many markets. This strong internal demand kept the economy buoyant. Yet, this alone would not have been sufficient to maintain a balanced economy in a world where Free Trade is a slogan rather than a reality. The fact that the Euro sector shut out Australian food exports, were balanced with eye-popping 100% import taxes on luxury cars. These taxes were eliminated as BMW and other car makers set up productions in South Africa and Australia where foreign cars could be paid for with Australian exports. I'm not sure how this compares to the situation in Brazil. .