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Even if it becomes difficult to overcome these issues in the short run, Australian economy can be stabilized by providing better education training, tightening the fiscal policy, job opportunity and better standard of living.
Over the last few decades, the rise in value of Australian dollar has become a subject of discussion among the economists. The appreciation in real exchange rate refers to the increase in the price of the average domestic goods or services relative to the price of average foreign goods and services. It leads to increase in current account deficits and rising in foreign debt (Henry, 2010). The rise in Australian dollar has both positive and negative impacts on foreign money market and its transactions. Since the value of Australian dollar is high, domestic people have the advantage of buying more products with fewer dollars while travelling in the foreign countries. However, dollar appreciation makes export more expensive in comparison to the other countries and at the same time, value of foreign investment goes up.
Though Australia is a large and wealthy country, the value of goods and services produced within the country is not sufficient to meet the demand for its local customers. Thus, foreign trade to exchange of goods and services has become an inevitable part for Australia to survive in the present scenario. However, fluctuation in dollar value has been one of the important factors in deciding the volume of foreign trade and in effect is an indirect indicator of balance of payment and monetary & fiscal policy of the Australian government. The current essay seeks to analyse the extensive implication of currency appreciation of Australian economy over its foreign trade.
As per the economic theory, appreciation in the real exchange rate has both positive and negative impacts on an economy. In most of the cases, the impacts are diverse and extensive. In short run, major implication for increase in
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(The High Australian Dollar Essay Example | Topics and Well Written Essays - 1750 Words)
“The High Australian Dollar Essay Example | Topics and Well Written Essays - 1750 Words”, n.d. https://studentshare.org/macro-microeconomics/1661417-the-high-australian-dollar.
One has been privileged to be part of Dollar General as a Category Supervisor in charge of organizing and managing the products offered at the store, monitoring inventory levels, determining vendor information, and projecting changes in demand and supply.
227). These disparities not withstanding, Harris and Harris (1992) report that the aggregate gross product growth rate was above national growth rate in most parts of the Oceania region and beyond. This analysis speaks of the strong economic history that Australia has possessed over the years.
Australia registered an annual growth of 3.2% in the GDP till the second quarter of 2010 (The Australian Bureau of Statistics, 2010) which is unlike other developed economies that have displayed either slower growth or negative growth. This rate of growth equalled the thirty year average for the Australian economy and was greater than the forward estimates for economic growth predicted in 2009 (Australian Government, 2010).
These have three questions in this essay Contents Question a 3 Question b 4 Question c 7 Conclusion 8 References 9 Bibliography 10 Question a The current characteristics of the Australian economy are governed by high terms of trade. It can be accounted that the rate has taken the falling curve recently but it cannot be ignored that the rate has remained historically high.
Terms of trade abbreviated as TOT is defined as the value of exports of a country relative to the value of its imports. It is determined or calculated by dividing the exports value by the imports value and then multiplying the result by 100. When the TOT of a country is below the 100% mark, the value indicates that there is increased capital going out to purchase imports that the capital coming in.
The effective management of such companies, however, is quite difficult to achieve. Not only must massive amounts of product be procured on a regular basis in order to attract customers, but expenses must be minimized as much and as consistently as possible in order to realize any type of revenue.
When the media industry was in its nascent stage it actively participated in country's affairs and received a mixed reaction from the indigenous people. It is believed that on the one hand republic media coverage explicitly problematized the meanings of the nation, an on the other it provided structured access to people.
Macro-management, of itself, is not the key ingredient in the process; rather, the essential building blocks have been trade liberalization, the opening of the capital account, the floating of the dollar, and the attempts at broad-ranging micro-economic reform, as yet incomplete.
The author of the essay casts light upon world globalization processes. It is believed that globalization means advances in telecommunication infrastructure and transportation infrastructure are the main factors for globalization, leading to the greater interdependence of socio-cultural, political and economic activities.
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