1) Briefly describe the pattern of trade between the US and Australia.

2) Critically evaluate theories of trade in terms of their ability to explain the pattern of trade between the US and Australia.

The trade balance between the US and Australia for the year 2020 are summarized in the figures below. For instance, the negative value for 331-Primary Metal MFG (Manufacturing) implies that in this product category, the US was a net importer from Australia. All the values are in US dollars.

O 4 2 O Value ($) (in billions) -2 -4 -6 ProductProduct Value ($) 331-PRIMARY METAL MFG 3-4,683,232,139 333-MACHINERY, EXCEPT ELECTRICAL $4,093,570,466 336--TRANSPORTATION EQUIPMENT $2,546,860,600 334-COMPUTER AND ELECTRONIC PRODUCTS $2,288,157,459 All Others $4,809,424, 185 Grand Total $9,054,780,571