The Aftermath of the global financial crisis: Australia's international trade position

The current notion widespread across the world today is that the worst of the GFC is over The global crisis has been accompanied by an extraordinary collapse in world trade. How does Australia's current International trade position look after the GFC? The present global financial crisis presents both major challenges and opportunities for Australian businesses Australian exporters are finding overseas orders sluggish due to declining demand in international markets or because overseas buyers are facing complexity in obtaining adequate credit. On the other hand the fall in the value of the Australian dollar is serving to make Australian products more cost competitive in global markets The global financial crisis and today's vibrant trade environment- means that Australian industry must become accustomed to dynamic international engagement. This paper begins with an introduction of the GFC and its impact on Australia and a brief theoretical evidence of a relation between trade and crisis The next section discusses the impact of the crisis on global trade and introduces key pragmatic indices that give a succinct indication of its scale and scope The paper concludes with an assessment of the GFC's implication for Australia's international trade.