Globalisation and trade liberalization are worldwide phenomena that hav

Globalisation and trade relaxation are worldwide phenomena that have significantly diversityd Australias trading relationships over the past decades.Globalisation and trade liberalization are worldwide phenomena thathave significantly changed Australias trading relationships over thepast decades. Traditionally , Australia is a highly protected countryagainst foreign competitors by victimization methods of protection such as responsibilitys and subsidies. However, since the 1980s Aust and many of theworld economies has faced substantial drop-offs in trade barriers inorder to promote what we known as Free Trade. Australia graduallyreduced its trade protections, which can be any actions by nationalgovernments that will give an artificial competitive advantage to national producers over foreign producers. The changes to the freetrade and protection policies has caused a significant improvement inthe number of Free Trade Agreements (FTA) and a shift in Australiastrading relationships, which in turn has light uponed firms, individualsand also the Australian government.Since the mid 1970s, Australia has started to reduce protection bycutting tariffs, tax on imports, from average tariff levels of 23% in1968 -69 to 4.4% in 2001. Traditionally, the highly subsidizedindustries (any form of support to keep domestic industriescompetitive) are sectors such as motor vehicle and textile, enclotheand footwear (TCF). These industries have a fixed low tariff levelbetween 2000 - 2005, to allow them to restructure and become moreinternationally competitive. Australias tariff reduction levels havegone way below 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 tradepromotion would take a much longer period to arrive.Through the significant change of Australias protection levels andthe promotion of free trade, it is obvi ous that Australias majortrading partners is shifting from European countries to the hightrading potential Asian countries. This is due the enormous lease inmany developing countries, which results in a greater market for merchandise. 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 performance of export as it generates Australiaseconomic growth, which in turn benefits firms, individuals and thegovernment sectors overall.