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Topic: History
Number of pages / Number of words: 5 / 1177
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Australia, like many other economies, has always been reliant upon international trade for economic prosperity. The fifth sector is important in the circular flow model as Australia is an open economy, and its international flows need to be considered when demonstrating the economic system.

The taking into account of the additional sectors of the economy proves that modern economies are much more complex than is represented by the basic flow model...


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The inclusion of the final sector, the overseas sector, rules out the assumption that there is no economic interaction between nations. After all, Australia is essentially an open economy, open to flows of goods, services and capital from overseas. Thus, there are no more significant assumptions are associated with the five sector model...


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