Economics for Global Business - Coursework Example

The country’s real GDP per capita has similarly grown over the last two years. In 2011, the real GPD per capita stood at 41,500 USD while in 2012, it stood at 42,400 USD, a positive change of 900 USD per capita within the period (Index Mundi 2013, par. 2). While the unemployment rate stood at 5.7% in 2009, this rate dropped by 0.5% over a period of three years to reach 5.2% in 2012 (Index Mundi 2013, par. 2). The economy also recorded a reduction in its budget deficit in 2012 at a rate of about 0.

8% of Australia’s GDP. Australia’s budget deficit is less than half that of the U.S., and its net debt is smaller than that of its gross domestic product (Stiglitz, 2013). Although the national budget deficit has been slightly increasing recently, the countries' public debt as a percentage of GDP is small compared to many European countries, France included. Australia has also benefited from a commodity boom that has seen the economy get stronger. These statistics and facts hint to the fact that the Australian economy is remained strong and has managed to achieve positive growth over the last couple of years.

The strides made by the economy are a direct result of the Australian government’s and the Reserve Bank of Australia’s positive efforts and robust policies. One important practice maintained by the Australian government is globalization. . tralia has continued to open up its borders to international trade and inflow of information, people, goods, and services, a factor that has seen its economy continue to grow. In this respect, the Australian government has been engaging the Trans-Pacific Partnership talks and has endeavoured to strengthen its relations with Korea, Japan and China by engaging them in free trade agreements (Index Mundi 2013, par 1).

Australia's government has put in place good policies to evade the kind of international economic turbulence that has affected so many other nations in the last two years (Thirlwell, 2013). A few years ago as other nations fell into recession, Australia kept its strong economy moving. Personal efforts by Australia's leaders such as Kevin Rudd saw the implementation of stimulus packages that reduced government debt and saved thousands of jobs. Being self sufficient in energy production, the country stands to benefit a lot economically since the cost of manufacturing has been cut down.

For any country to have a good economy, its central or reserve bank plays a crucial role in overseeing economic growth. The Reserve Bank of Australia has been playing a very important role in the Australian economy. Thanks to the establishment of good monetary policies by the Australian Reserve Bank, the country has managed to avoid recessions and high inflation (Onselen, 2013). Australia’s exemption from the recent global recession is proof that the government and reserve bank policies have made Australia a model of a successful economy (Onselen, 2013).

One contributing factor to the notable example of good adjustment of the macro economy has been the flexibility of the exchange rate. Even though other factors such as demand for labor, and the growth of wages, were playing a