Investor Presentaiton

Our trade imperative Trade is important to Queensland at both the microeconomic and macroeconomic level. Exports support one in five Queensland jobs, with increased trade in goods and services predicted to be the key driver of economic growth in the state over the next few years.6 For individual businesses, exporting opens up new markets for goods and services. This is particularly important in Australia where a relatively small domestic market can limit growth. The broadening of markets can lead to stronger growth rates and higher profits, as well as improved efficiencies created by competition and economies of scale. A growing number of target markets can also help to spread business risk, making businesses less susceptible to fluctuations and economic shocks in particular regions. Queensland workers benefit not only through the creation of new jobs, but also because companies that export make good employers, outperforming non-exporting companies with regard to wages, staff development and employment conditions. Exporters are also more innovative and adopt new technologies and management practices more rapidly than non-exporters.7 At the macroeconomic level, trade increases the rate of innovation in the economy due to the transfer of knowledge and technology and the need to continually improve products and practices due to increased competition. Trade also deepens diplomatic and business relationships between Queensland and the rest of the world, and encourages higher levels of foreign investment. The other side of the trade equation is imports. Importing plays a significant role not just in growing the economy but also in supporting exporters. For instance, many exporters import essential product components and add value by creating higher-order goods. Also, importing goods that Queensland cannot produce cheaply allows the state to specialise in products and services where Queensland has a comparative advantage over interstate and international competitors. Exports support 1in5 Queensland jobs + Port of Brisbane, Queensland Queensland Trade and Investment Strategy 2017-2022 11

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