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Word Count: 265
Why despite Australias visible advantages in natural resources accessibleports and a huge educated population is Australias GNP growing at such a stuntedAustralia has many benefits of a well established economically solideconomy certainly it is very far from a third world country with 85 percent of itspopulation living in cities However Australia has never made a run at becomingone of the worlds economic powers There are clear reasons for this howeverconcerning the quality of Australian manufacturing which is where huge amounts ofmoney are made for wealthier countriesThe problem for Australian manufacturing is that is has never had thedemand needed to bring big money into manufacturing plants Australianmanufacturing is more locally centralized to support the needs of areas andcommunities not for export These small local companies are protected by thegovernment by high tariffs on manufactured goods being imported Their largesttrade partner in recent years is Japan and since Australia keeps high tariffs onfinished then Japan keeps tariffs on imports of manufactured goods as well Thismeans that any export market that Australia could have with Japan in finished goodsis wiped out because the Australian manufacturers dont want to pay these hightariffs Thus Australia keeps exporting the usual raw materials and mineral wealth tothe Japanese for low prices and stimulate their economy with their manufacturingprofits If Australia were more saavy in their business handlings with Japan thenthey could up their GNP easily However as it is Australia is just is making it bywhile money is slipping through its fingers
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