This advantage is clearly not sustainable in the long term; iron ore and concentrates are a finite resource and at some point supply will be exhausted. .
Part 3 - Australia's Main Imports.
Australia's two most imported goods were crude petroleum, at 20,815 million dollars, and refined petroleum, 14,328 million dollars, in 2011. With such high levels of demand for petrol in Australia imports of both refined and crude petroleum have continued to increase over many years, and with such high levels of demand and restricted levels of supply importing these goods places enormous strains on the Australian economy. The dependency on imported petroleum exposes the Australian economy to fluctuations on the worldwide market for petroleum. Outbreaks of war in the Middle East or hurricanes in the U.S can quickly affect the supply of petroleum. In some instances OECD countries have deliberately manipulated supply to drive up prices. These factors are beyond the control of the Australian Government and represent a risk to the health of the Australian economy. .
Part 4 - Australia's Primary Trading Partners.
Australia's major exporting destinations reflect the goods that are being exported, with 27.3% of exports going to China, and 19.3% going to Japan in 2011. With China in particular expected to become the most powerful economy in the world, according to Austrade's chief economist Tim Harcourt, "The Chinese economy has been growing at a rapid rate." It's currently 12 per cent of world GDP (measured on a purchasing power parity basis) and if it keeps up 10 plus percentage growth rates over the next 10 years or so, it will be as big as the US economy within the decade, and twice as large by 2050'. This being the case, China is the best equipped economy to help Australia pay off their sizeable current account deficit. The rapid industrialization in China will drive the Australian economy and in particular exports of iron ore for many decades.
