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Government Policy • Promote free trade • Deregulate the labour market • Deregulate the financial market • Improve efficiency in Government • Reform of Government taxation • Schemes to promote exports • International trade agreements that promote exports Goal of External Stability The goal of external stability is for Australia to pay its way in external ‘international’ transaction. • Net Foreign Trade – less than 6% of GDP • Current deficit no more than 3% of GDP • Stable exchange rate Government Policies Cutting tariffs and other forms of protection • Decreases the cost of imported parts and materials, leading to cheaper Australian goods, leading to overseas contracts.
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