COMPETITIVENESS AND OPENNESS AND PROGRESS

Australia's international competitiveness has an impact on whether life in Australia is getting better, as it affects our international trade and, in turn, our national production, employment and income. A fall in our competitiveness implies that it is more difficult to find buyers in both foreign and domestic markets for Australian goods and services.

Openness (the interaction of Australia's economy with other economies) can provide benefits to Australians. For example, an increased openness to imports means that Australians have a wider range of goods and services to choose from and often at more competitive prices. Furthermore, increased international trade and investment flows may give businesses access to newer and more innovative technologies. This may lead to productivity improvements and greater efficiencies or innovation in Australia.

For a full list of definitions used in Competitiveness and openness, see the Competitiveness and openness glossary.