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Although a relatively small producer, Australia exports but about 90% of its cotton production, making it the third largest cotton exporter. This means that export performance plays a major role in determining the profitability of the Australian cotton industry. The primary aim was to determine the competitive position of Australian cotton in the Japanese market, based on the AIDS model using data from 1972 to 1998. The main findings were that the United States had a relatively strong market position and that to improve its market position, Australia should become more cost competitive and/or improve its quality image through promotion.


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