Australia's Economic Growth Relies on Asia's Continuing Demand for Resources - Case Study Example

by Student’s name Code+ course name Professor’s name University name City, State Date Introduction This paper seeks to look at the various ways in which demand of energy and other resources by Asian countries affects the economy of Australia. It also looks at various ways in which the economy responds to these changes in demands in resources. This is because the economy of Australia depends on the demand for various resources in Asian continent because it relies on it for most resources (Macmillan 2005. p .134-p200). Writers on the economy of Australia There are various writers who have published articles and books on the economy of Australia and factors surrounding it. Such writers include Anthony Fensom, famous for his article on the economy of Australia and its expectations in the future. He has another article on Australia’s surplus fantasy. All his articles seek to explain the role that Australia plays on exporting resources to Asian countries and how it plans on dominating them so that it increases it exports. James Parker is another writer of an article on China and Australia’s coming economic divorce. However, James explores on the relationship between China and Australia in business. He also explores on the possibilities of a divorce between these two countries. The third writer on the same topic is Ian McLean who is famous for his book on how Australia plans on shifting resources to grow the economy. He explores the reasons behind the decision by Australia to shift sources of economic growth. All the above writers have published either books or articles on the economy of Australia (McLean 2012). Ways that Australia’s economy can respond to either growth or contraction in Asian demand In regards to Mankoff, (2009): p.34-p.49.Australia’s economy depends on the demand of these resources like energy, which is an essential resource in most industries in Asia. Countries in the Asian continent that demand these resources most include China, Indonesia and India. Some of these resources that Asia depends on Australia for include natural gas for energy uses in industries. It is important to note that its economy has been growing by a faster rate than other developed countries. Experts estimate the growth to increase to 3% by the end of this year .These industries are the backbone of the economy of Asia because it runs the economy. This means that without such industries, the economy of the country does not grow. This justifies the reason for Australia’s economic growth depending on the demand for such resources and other commodities by Asia. The increasing demand of resources and commodities from Asia means that Australia exports more. There is a continuing demand of resources by Asia because it is expanding on its industries. It means that the economy of Australia will grow due to this increase in demand from Asia. It follows that an increase in demand of any commodity leads to growth in the economy of the source of the particular resource. In this case, the source of the commodity is Australia and the commodity is resources (Kirby & Marsden 2012.p.100-p.2006). That means that the more Asia demands these resources from Australia, the more Australia’s economy grows. This is because it works more so that it is able to meet the increasing demand for resources. It also follows that a decrease or decline in demands for the energy resources and other resources will result to a decline in the economy of Australia. Research shows that for the past about three years, Australian economy is struggling to keep up with the increasing demand for energy resources by developing coal seam gas resources. There are various reasons accounting for this relationship between Asia and Australia regarding demand for resources and growth or contraction of economy in Australia. There are several ways that the economy can respond to increase in demand or decline in the same in Asia. One of such ways is improving the quality of such resources. Researchers explain that for Australia to keep up with the increasing demand, it has to improve on the quality of coal gas resources. This aims at maintaining Asia as customers for the resources. Failure to do this will mean that Asia will run to greener pastures of the same resources in other countries. This implies that the economy of Australia declines because it will no longer supply the resources to Asia. Therefore, Australia responds to a contraction in demand of commodities and resources by enhancing the production of natural coal resources (Kirby & Marsden 2012). Another way that Australia responds to either growth or contraction in Asian demand is formulation of policies for its economy. Formulation of prudent macroeconomic policies has been of help for the country as they deal with financial crisis (Macmillan 2005. p.180-p190. ). This is the case when there is contraction in the demand for energy resources by Asia, leading to financial crisis in the economy. Such policies include the tax system applying to exports. Australia responds by using these policies depending on the trend of the demand in such resources by Asia. In cases the demand contracts, the economy implements policies that will encourage growth in the export of energy resources. The contribution of two Australian companies in exporting resources There are several companies according to the official listing of companies in Australia that have a bigger contribution in the exporting of resources. This paper seeks to analyze in details the contribution of these two companies in the role of resource exporting. The two companies contribute to the growth of Australia’s economy because of the important role they play in exporting resources to the outside world. The paper analyzes ADSLOT limited Company and Acer energy limited company (Acemoglu 2008 p. 345-p.507). Acer energy limited is a company in the ASX listing dealing with production of energy mostly focusing onshore in central parts of the country. This company partners with other energy companies to create extensive portfolio. It plays a big role in exporting energy resources in Australia by producing a variety of energy resources. This company deals with the production of both renewable and non-renewable energy resources for export in other countries. Acer Energy Company has its headquarters in Brisbane in the country. Research shows that about 40% of the country’s exports on energy resources come from this company. Ratings from clients in the outside countries on these resources show that about 67% prefer their energy resources to other companies. Acer Energy Company has well trained staff with necessary skills and experience in the production sector of energy resources (Acemoglu 2008p. 345-p.507). This aims at exporting the best resources to other countries. Some of the countries that it exports the energy resources include America, Europe, Asia and Japan among others. It has a large contribution in exporting resources because it is well known for producing the best energy resources in the region. It aims at putting the needs of clients’ frontline to ensure that they capture and retain market from abroad. The second company in the top listing of ASX is the ADSLOT limited company. This company deals with the selling of video, TV and other communication and technology products. It has its headquarters in Melbourne and was incorporated in 2007. This company is famous for offering advertisement services both in Australia and other countries (McLean 2012. p .134-p200). This company contributes much in exporting resources from Australia to other countries abroad. It is important to note that it is among the few companies that export services to other countries. It exports the best services abroad in the field of sales and advertisement. ADSLOT limited company contributes about 23% of the country’s exports in the sector of advertisement services and sale of devices. From 2010 to date, the company operates under the Web firm Group Limited. It exports its technology services to other countries like North America and Europe (McLean 2012. p .134-p200). It has one of the biggest contributions to the growth of Australia’s economy because it is expanding its exporting territories. Recently, it began exporting its services in Asian countries and other continents. It contributes to the economy’s growth by approximately 10% because of the services and resources it exports especially to Japan and Europe. How Acer Energy Limited is looking to the future to expand its exports into Asia. This company is aiming at expanding its exports in Asia by increasing its market. According to the company’s president, the company has an objective of expanding its energy markets in the future. The Company through its president is targeting to be the top producer and exporter of energy resources in Asia. The company plans on competing with both local and foreign producers of energy products in the Asian continent with the aim of expanding its exports. This company plans on dominating Asia in the next ten years by creating wealth shift in Asian countries. In regards to Percival (2012).p .259-325.Acer Energy Limited Company is looking to reaching its target by exporting more of its energy resources to India, Thailand and Indonesia. Statistics show that by the year 2009, its contribution was about 33%. This shows that it has the capability of reaching the target set. The company plans on expanding export activities in the above countries so that the purchasing power parity favors them .According to the president of the company, it has set policies that will help towards achieving the set goals. Some of the policies include carrying out advertisements in these countries as a form of selling their products. This will make the company famous in the Asian countries, which will help them to expand their market. Conclusion Asian countries rely on Australia for the supply of energy resources to use in their industries. This is because they lack these natural resources to produce energy. Therefore, Australia’s economy grows because of export earnings that drive the investment boom. This is attributed to the fact that there is introduction of new natural resources in the country and demand from the Asian continent. References Acemoglu, D. (2008): Introduction to modern economic growth: Princeton University Press: Pg. 345-507. Kirby, J & Marsden, P. (2012): Connected marketing: Elsevier: Pg. 100-206. Macmillan, P. (2005): Asian brand strategy: how Asia builds strong brands: Palgrave Macmillan: Pg.180-190. Mankoff, J. (2009): Eurasian energy security: council special report No., 43 February 2009: Council on Foreign Relations: Pg. 34-49. McLean, I. W. (2012): Why Australia prospered: the shifting sources of economic growth: Princeton University Press: Pg. 134-200. Percival, J. (2012): HTML5 Advertising: A press: P. 259-325. Read More