Explain the two way trade relationship between China and Australia.?

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Explain the two way trade relationship between China and Australia.?

2007-01-21 16:57:08 · 2 answers · asked by Pushparaj 1 in Social Science ➔ Economics

2 answers

Well, we sell mined iron ore to China and they turn it into steel and we buy it back for twice the price.

2007-01-21 17:00:41 · answer #1 · answered by jammer 6 · 0⤊ 0⤋

China makes rice. Australia buys the rice and makes beer, then it sells the beer to China, and then buys more rice.

It's called comparative advantage.

2007-01-25 08:57:41 · answer #2 · answered by JimTO 2 · 0⤊ 0⤋