BTN: The import of exports!

A car outside a suburban house.

REPORTER:

This car was made in Japan, which makes it an import. Imports are goods bought from overseas. Hmm. I wonder what other imports this family has.

DESCRIPTIONS:

Labels appear on screen, identifying a table, laptop computer, television and various other items as imports.

REPORTER:

Yes, these guys have bought a lot of imported goods. So have most of us. We buy imports because they may be better or cheaper than what Australia produces or because Australia can't produce them. At the moment, we're particularly fond of imported motor vehicles, aircraft and computers. And the main countries we buy this stuff from are the United States, China and Germany.

REPORTER:

Imports aren't just goods - they're also services people provide. Though, if I went on a holiday overseas and spent my money at a hotel or restaurant, well, that would be an import, because I'd be spending my money out of Australia. But if foreign tourists came here and spent their money here, that would be an export for Australia. Sounds a bit confusing, but generally speaking, exports are goods and services sold overseas that bring money into Australia.

REPORTER:

So, what are our big money-makers? Well, we've relied pretty heavily on the mining and farming industries. For example, we sell a lot of coal, gold and beef overseas. If you're wondering where exactly, well, Japan is Australia's main buyer, then China, the United States and South Korea.

REPORTER:

OK, so we've got goods and services moving in and out of Australia. The problem is we've got a few too many moving in and not enough going out. This imbalance is one of the reasons Australia has a current account deficit.

The reporter at a food counter, about to purchase a drink.

REPORTER:

Current account deficit basically means we're spending more money than we're making. We're living beyond our means.

She turns to the shop assistant.

REPORTER:

Can I pay for that later?

Back in the family home.

REPORTER:

Now, that doesn't mean Marcus here owes anything on his imported goods, but it does mean as a country we owe money overseas. We have a foreign debt. Many say that debt was one of the reasons our interest rates have just gone up.

Inside a warehouse.

REPORTER:

The Government says we should be exporting a larger variety of goods. For example, this company started out exporting organic wheat for $250 a ton. It now exports organic flour for $500 a ton and organic liquorice for $9,000 a ton. Now, that's a sweet deal.