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Research has identified two distinct influences on the direction of firm internationalisation, cultural distance, and regionalisation. This paper sets out to test the strength of these influences on the direction of exports in circumstances where they act in different directions. The paper applies a quantitative methodology to a large, purposively compiled data set of Australian export values over the period 1990 to 2004. The Australian context provides an interesting case because its cultural linkages and its geographic connections lie in different directions. It is shown that regionalisation is the dominant influence on the direction of exports in the Australian context. [ABSTRACT FROM AUTHOR]

The article presents a rejoinder on comments made by Tim Harcourt, Austrade's Chief Economist, for the article on Australia's export promotion program objectives published in the previous issue. It addresses specific points concerning Austrade's doubling exporters program and comments on relevant points quoted. It also provides further statements including the need for more credibility, transparency and accountability in the Australian export programs.