Australia’s Natural Resources and Economy

SS6E8.a,b

SS6E9.b,c

SS6E10.a,c

• Australia’s natural resources are often referred to as “gifts of nature”, and Australia has many such gifts.

* Australia has a diversified economy. This means they are able to make money in several different ways such as: farming, mining, manufacturing, service industries, and tourism.

• Arable land is a valuable resource.

• Australia has limited amounts, but very fertile soil for farming.

• They grow enough food for Australians as well as export.

• Lust pasture allows for a strong beef industry.

• Sheep are a major livestock grown for wool production.

Mineral Wealth• Minerals are a major export. Coal, iron ore,

copper, tin, gold, silver, uranium, diamonds, petroleum, and natural gas are examples of Australia’s natural wealth. Australia is the world’s leader in bauxite. It is used to make aluminum. One-third of all of Australia’s natural resources are exported to China and Japan.

Australia’s Economy

• Because of few governmental restrictions, Australia has one of the freest economies in the world. It is mostly a market economy where buyers and sellers agree on prices.

• Australia’s greatest natural trade barrier is the Pacific Ocean.

• Australia’s economy encourages entrepreneurship. It only takes a few weeks to get a business licenses.

Australia’s Economy Continued

• When Australia needs products that they can’t produce themselves, they must seek out other countries that specialize in producing those products.

These countries then become trading partners. • To encourage trade among nations, Australia

keeps their tariffs low.• Tariffs are taxes on imported goods.• Quotas are limits on products that can be

imported into a country.• Embargos prohibits trade with other countries.

• Australian Classroom

Human Capital

• Australia invest heavily in Human Capital.• From ages 6-18, ALL Australian children MUST attend

school. The literacy rate is nearly 100%.• Australia’s workforce is highly well trained and well

educated.• The state health care system is well organized and

available to all.• Australia has one of the world’s highest standard of

living.