Globalisation and trade liberalization are worldwide phenomena that hav

globalization and trade liberalization argon worldwide phenomena that have significantly changed Australias trade relationships over the past decades.Globalisation and trade liberalization are worldwide phenomena thathave significantly changed Australias art relationships over thepast decades. Traditionally , Australia is a highly protected republicagainst impertinent competitors by using methods of protection such asdutys and subsidies. However, since the eighties Aust and many another(prenominal) of theworld economies has faced substantial decrements in trade barriers inorder to promote what we known as Free Trade. Australia gradually trim down its trade protections, which can be any actions by nationalgovernments that get out give an artificial competitive advantage todomestic producers over foreign producers. The changes to the submittrade and protection policies has caused a significant improvement inthe number of Free Trade Agreements (FTA) and a shift in Australiastra ding relationships, which in turn has affected firms, individualsand also the Australian government.Since the mid 1970s, Australia has started to constrict protection bycutting dutys, tax on imports, from average tax levels of 23% in1968 -69 to 4.4% in 2001. Traditionally, the highly subsidizedindustries (any form of halt to keep domestic industriescompetitive) are sectors such as motor fomite and textile, clothingand 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 involve by international trade savvy 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 lifelong period to arrive.Through the significant change of Australias protection levels andthe promotion of free trade, it is obvious that Australias majortrading partners is shifting from European countries to the hightrading potential Asian countries. This is due the enormous demand inmany developing countries, which results in a greater market for trade. This has brought a imperious impact on Australias primary baseindustries such as minerals, and so 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.