International Trade Liberalization Analysis

Trade liberalisation causes the expansion of global and regional trade and also causes changes in trade patterns of global trade. Multilateral trade and bilateral trade liberalization makes the global output three times more than the level of global trade in1950s there is growth in non-commodity exports, such as computers and electronics. Change in export composition of world trade shows the strong emergence of EMEs. Last five-six decades seems tremendous changes in international trade and there is change in the mode of production too. There is a shift from horizontal specialization to vertical specialization, that is, the increased importance of imported input in the production of goods that are exported. Vertical trade makes a link between

Last many decades seen increasing importance of trade in developing countries and there are reforms in trade policies of developing countries. From 1980s there is a dramatic change in the composition of developing countries trade. There is increase in the share of manufacturer’s goods from 1965 to 1998. In 1965 about 50 percent of agricultural commodities are exported and manufacturer commodities have only 15 percent sharing but, in 1998 the share of manufacturer commodity in exports reached up to 80 percent. Along with composition there is change in trends of direction of exports. In mid 1960s developing countries export which was destined to other developing countries was about 17 percent but in 1995 this percentage rise to 40 percent. The share of manufacture commodities which were exported to industrial countries has fallen and that of developing countries has increased. Change in the policy of trade protectionism cause change in the composition and direction of Australia’s trade. Change in Australia’s composition of export starts from the increasing opportunities in mineral market which are coupled with OPEC-induced rise in the prices of energy raw material in the international market makes changes in Australia’s export. Australia starts giving more importance to mineral and metal exports. There percentage in export increases from 10 percent in 1950 to30 percent in 1970s which further increase to 40 percent in 1980s. And its agriculture share in export decreases to 20 percent in 1980s which is 80 percent in 1950s. Whereas the direction of Australia’s trade has also changed over these years until 1950s more than 60 percent of Australia’s trade was with Europe and during the 1960s America and Japan was the major trading partner of Australia and during 1990s Australia growing its trade with developing countries of Northeast and Southeast Asia. Trade links of East Asia with the U.S. and Japan has affected because of the