Demonstrates Local to Global Relevance †Free Samples to Students

Question: Discuss about the Demonstrates Local to Global Relevance. Answer: Introduction: In Australia, agricultural sector has contributed significant amount to the countrys national income by exporting almost two thirds of its total products. Australia has possessed a wide range of arable land along with large beef ranches (Lyons and Lawrence 2017). Hence, this report has intended to analyze the export market of agricultural products of Australia globally, based on some newspaper articles. The government of Australia and workers of agricultural sector may show their interest to understand the scenario and based on which they can produce products. After that, the report has tried to present this scenario in terms of some macroeconomical concepts to implement theoretical knowledge practically. At the end of this report, a suitable conclusion has provided along with some essential recommendations. According to the Guardian, a leading newspaper of Australia, the country has increased its trade volume with Nigeria worth $ 350 million by exporting wheat. At present, the concerned country is trying to export mining products management to enhance the trade relation with Nigeria (Guardian.ng. 2018). In 2016, according to the Australian Bureau of Agricultural and Resource Economics and Science (ABARES), Australia has exported almost 16 million tons of wheat, which has accounted for almost 12.5% of total exported agricultural products. Moreover, the country has remained the second largest exporter of beef, worldwide, after Brazil and has accounted for almost 19.9% of total agricultural exports, in this year (Gobbett et al. 2017). The Australian Bureau of Statistics has provided some statistical data, where it is stated that average production of barley, oats and wheat have increased by large amount during 2016-17. Due to favorable weather, wheat plantation area of Australia has increa sed by 4% while production of that crop has increased by 30 million tones. Moreover, due to sufficient rainfalls, barley production has been increased by 2.8 tons per hectare in New South Wales and Victoria. Hence, production of most of the principle crops has increased during this period except sorghum as its production has decreased by 990,000 tones. In addition to this, favorable weather has also helped the country to increase its meat cattle herd by 23 million head, that is, by 5% from 2015-16 to 2016-17 (Abs.gov.au. 2018). On the other side, due to unfavorable weather of Victoria and NSW, the number of dairy cattle has been decreased almost 10 %. Australia has a strong competition with the U.S.A for exporting agricultural products to China, while the present situation has helped Australian farmers positively. Wine producers of Australia has exported this product to China worth $526 million and this amount can also be increased in future if the tariffs on wine exports of California has remained at the same level (Hansen, Marchant, Tuan and Somwaru 2017). Moreover, fruits and nuts of Australia are capturing global market through replacing the same food items of the U.S.A. For dairy, China prefers Australia by limiting dairy imports from the U.S.A. Hence, through China-Australia trade agreement, Australia has defeated the U.S in international market. According to the above diagram, it can be stated that Australia has exported huge amount of Barley to China in 2016-17 (Ma et al. 2018). After imposing the free trade agreement between China and Australia, the concerned country has enjoyed comparative advantage to produce and export more barley. Economic Analysis: Through providing large amount of employment opportunity management and export of products, agricultural sector can influence a countrys economical activity significantly. Each country has produced some specific agricultural products in which it has earned comparative advantage and has influenced to export those products to other countries. This can help the exporting country to earn revenue in the form of foreign capital (Adam, Rosnawintang, Nusantara and Muthalib 2017). By doing so, a country can increase its stock of foreign reserve. The above figure has depicted Australias export of agricultural raw materials since 2006. From this figure, it can be stated that the export of raw materials of this country has increased by huge amount after 2009. Hence, the agricultural sector has earned huge amount of revenue, which in turn has helped to country to contribute almost 12 % to the countrys national income (data.worldbank.org 2018). In addition to this, number of economically active people in Australia has remained at 2.7%. Hence, for this increasing trend of export, many people have employed themselves in agricultural activities and have contributed their income to the countrys national income. Moreover, exporting of agricultural products through international trade has helped Australia to make a strong relationship with other nations, like China and Nigeria (Adam, Rosnawintang, Nusantara and Muthalib 2017). Moreover, this strong international relationship has further helped Australia to earn a noticeable position in international economy by defeating other major countries thorough trade. Hence, this agricultural sector has influenced some macroeconomical factors like GDP and employment of this country to increase. Recommendation: The country still has some major issues like volatility of market and weather that can influence the agricultural sector of this country in both positive and negative way. Hence, the government needs to take some initiatives to solve those problems that can offset risks for farmers and for the country in future. To protect the shelf-interests of Australian farmers, it is essential to maintain a stable price level for agricultural products throughout the year without considering the variation of weather. Hence, during lack of rainfalls, the farmers can receive subsidies to overcome their costs. Moreover, through affective monetary policy, the government can reduce the interest rate of farmers, which in turn can help them take loan from banks (Hochman, Gobbett and Horan 2017). The government, through fiscal policy, can also reduce tax on farmers income and agricultural products to encourage them for producing more items. On the other side, international market analysis is also required to track changing consumer wants regarding food assurance. For this, Australia needs to achieve a strong quality and safety record. Conclusion: It can be concluded that Australian market for agricultural products has captured significant share in world economy, by exporting wheat, barley and beef. This huge amount export has helped countrys national income to increase and to earn huge amount of foreign capital. In addition to this, by exporting products in other countries like China and Nigeria, the concerned country has maintained a strong international relationship. However, Australian farmers have suffered more due to weather and price variations for which the government through its monetary policy can supports to them. References: Abs.gov.au. 2018.7111.0 - Principal Agricultural Commodities, Australia, Preliminary, 2016-17. [online] Available at: https://www.abs.gov.au/ausstats/abs@.nsf/0/E31157304E16BB18CA2580AE0014D024?Opendocument [Accessed 8 Apr. 2018]. Adam, P., Rosnawintang, R., Nusantara, A.W. and Muthalib, A.A., 2017. A Model of The Dynamic of The Relationship Between Exchange Rate and Indonesia's Export.International Journal of Economics and Financial Issues,7(1). Data.worldbank.org. 2018.Agricultural raw materials exports (% of merchandise exports) | Data. [online] Available at: https://data.worldbank.org/indicator/TX.VAL.AGRI.ZS.UN?end=2016locations=AUstart=2006 [Accessed 8 Apr. 2018]. Gobbett, D.L., Hochman, Z., Horan, H., Garcia, J.N., Grassini, P. and Cassman, K.G., 2017. Yield gap analysis of rainfed wheat demonstrates local to global relevance.The Journal of Agricultural Science,155(2), pp.282-299. Guardian.ng. 2018.Nigeria, Australia trade relations hit $350 million. [online] Available at: https://guardian.ng/business-services/nigeria-australia-trade-relations-hit-350-million/ [Accessed 8 Apr. 2018]. the main article Hansen, J., Marchant, M.A., Tuan, F. and Somwaru, A., 2017. US Agricultural Exports to China Increased Rapidly Making China the Number One Market.Choices,32(2), pp.1-6. Hochman, Z., Gobbett, D.L. and Horan, H., 2017. Climate trends account for stalled wheat yields in Australia since 1990.Global change biology,23(5), pp.2071-2081. Lyons, K. and Lawrence, G., 2017. Institutionalisation and resistance: organic agriculture in Australia and New Zealand. InFood, Nature and Society(pp. 81-100). Routledge. Ma, Y., Schwenke, G., Sun, L., Li Liu, D., Wang, B. and Yang, B., 2018. Modeling the impact of crop rotation with legume on nitrous oxide emissions from rain-fed agricultural systems in Australia under alternative future climate scenarios.Science of the Total Environment,630, pp.1544-1552. Tradingeconomics.com. 2018.Employment in agriculture (% of total employment) in Australia. [online] Available at: https://tradingeconomics.com/australia/employment-in-agriculture-percent-of-total-employment-wb-data.html [Accessed 10 Apr. 2018].