Opportunity costs: Why should Australian minerals be sent to Japan to be processed then brought back to Aust?

Kra28 · 13-04-08

Why should Australian minerals be sent to Japan to be processed then brought back to Australia as imports of metal, even if Australia could process these minerals more cheaply?

jjols · 14-04-08

perhaps australia wants to keep its currency cheaper by selling aud for jpy in order to process ore so its trade balance will be better when it sell the stuff to other countries

italo · 14-04-08

The Japanese have a higher living standard than Australia, so they certainly aren't processing it more cheaply. Probably the minerals in question can't be processed at all in Australia, that's why they are sent to Japan.

wheeliebin · 14-04-08

A very good question! before WW2. we supplied Japan with minerals and scrap iron, during WW2. they sent it all back to us in bullets, tanks, battleships and cruiser fleets! Where's our logic. ??????