...maintained strong economic growth, low government debt and a triple-A credit rating. With this record, you might expect the federal election to be focused on how to convert the strength of today's economy into resilience for the future. But instead the political spotlight has fallen on the perceived problem of government debt, with alarming proposals to bring austerity ''down under''. For an American, Australia's anxiety about deficit and debt is a little amusing. Australia's budget deficit is less than half that of the US and its net debt is less than an eighth of the country's gross domestic product. Most countries would envy Australia's economy. During the global recession, Kevin Rudd's government implemented one of the strongest Keynesian stimulus packages in the world. That package was delivered early, with cash grants that could be spent quickly followed by longer-term investments that buoyed confidence and activity over time. In many other countries, stimulus was too small and arrived too late, after jobs and confidence were already lost. Advertisement In Australia the stimulus helped avoid a recession and saved up to 200,000 jobs. And new research shows that stimulus may have also actually reduced government debt over time. Evidence from the crisis suggests that, when the economy is weak, the long-run tax revenue benefits of keeping businesses afloat and people in work can be greater than the short-run expenditure on stimulus measures. That means that a well-targeted fiscal...
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...Analysis of the Economy Export, Import and Production In recent years, Australia has been a net exporter of goods and net importers of services (See appendix 1). The country, rich in natural resources, is a major exporter of commodities. Iron-ore and gold account for 28% of total commodities exports (81 Billion US$ in 2013). Coal represent 18% or 38 Billion US$ and oil and gas for 9 percent. Manufactured goods constitute 33 percent of the total exports with food and metal products and machinery and equipment accounting. Agricultural products, particularly wheat and wool make up 5 percent of trade outflows Australia is a major importer of machinery and transport equipment, computers and office machines and telecommunication. Main import partners are China (15 percent of total imports), United States (13 percent of total imports), Japan (8 percent of total imports) and Singapore (7 percent of total imports). Trading Partners Trade with the Asia-Pacific region has become increasingly important for Australia. Of Australia's top sixteen major trading partners (representing around 80 per cent of merchandise exports); countries from the Asia-Pacific region are the destination for around 89 per cent of this trade. China is the most important trade partner of Australia, the country export Iron ore and gold as well as oil and many raw materials. China is also Australia’s largest source of imports. Major imports from China are mostly finished goods that include clothing, communications...
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...Running Head: OVERALL PRODUCTIVITY OF THE ECONOMY Overall Productivity of the Australian Economy By Student’s Name Code+ course name Professor’s name University name City, State Date Introduction The best definition of productivity under the Australian and other contexts is, “the efficiency with which an economy employs resources to produce economic output” (D’arcy and Gustafsson, 2012, p. 23). It will remain that the most complete measure of productivity is the TFP (Total Factor Productivity), which accounts for all inputs involved in production. Normally, “the inputs are classified into capital (K), labour (L), energy (E), materials (M) and services (S)” (O'Mahony and Timmer, 2009, p. 538); the lead letters of each input are why this is called the KLEMS approach. Principally, the measures of inputs and outputs can be incorporated adjustments for quality change. Nonetheless, KLEMS approach is arduous in terms of data and that is the reason why very few countries in the world utilize this approach (Hannula, 2012). The MFP (multifactor productivity) approaches are easily implementable. The MFP approach accounts for merely two inputs, namely labour and capital. Presently, the most comprehensive measure of productivity available in Australia is MFP. Principally, labour input in the MFP ought to be adjusted for enhancements in the human capital (the quality of labour), yet as earlier hinted, this is not done in Australia at present, similar...
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...How external forces effect the Australian economy Real Gross Domestic Product is a measure of GDP. RGDP is an inflation-adjusted measure that reflects the final market value of all goods and services produced at the end of any given year, regardless to any change in price or purchasing power. The inflation rate is a measure of inflation and is the percentage increase in the price of goods and services expressed on a yearly basis. The inflation rate can be measured by observing the consumer price index and the GDP Price Deflator. The unemployment rate is a measure of unemployment. The unemployment rate is a percentage of the total workforce who is currently unemployed. Low rates are seen as inflationary because of the upward pressure on incomes, and high rates lead to a decrease in consumer spending. | |2003 |2004 |2005 |2006 |2007 | |RGDP Growth |3.4% |3.2% |3.2% |2.5% |4.4% | |Inflation Rate |2.4% |2.6% |2.8% |3.3% |3.0% | |Unemployment Rate |6.3% |6.0% |5.1% |5.1% |4.9% | [pic] http://www.dfat.gov.au/GEO/fs/aust.pdf (RGDP Growth & Inflation Rate) http://www.indexmundi.com/australia/unemployment_rate.html (Unemployment Rate) The business cycle is the fluctuations in the economic growth over a long period of time. The business cycle can rather irregular and does not tend to follow any given particular pattern. There are four main stages that occur during the business cycle; an expansion, where growth is above average, a peak, the highest point of the growth...
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...Mining has been essential to the growth of the Australian economy as well as satisfying the demand of society by supplying raw metals and minerals for production of goods for use in society. Over the past three centuries, Australia has experienced mining booms across cities and towns, as well as significant developments in mining methods which has made Australia an efficient mining country. Ballarat, derived from "Balla" "Arat", Aboriginal meaning for "camping place", is one city of which has seen this mining outbreak in early years, located near the Yarrowee River and among the lower western Great Dividing Range, Victoria's largest inland city experienced one of the great mining booms of Australia. Ballarat was one of the first early cities to be exposed...
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...Purchasing Australian Made Goods and its Effect on Our Economy ABSTRACT The purpose of this essay is to analyse the effects of purchasing Australian made goods on the Australian economy in relation to determining the degree to which it is advantageous. The research concludes that in fact it is far more beneficial for consumers to purchase goods unbiasedly. The economic theory of a comparative advantage denotes that a country should aim to specialise its production as to channel resources efficiently and achieve economies of scale nationally. The increasing trend in globalisation has meant an increase in the availability of goods and services increasing our Gross Domestic Product (GDP) through benefiting from increased trade and maxamising on the benefits of fluctuations in the international business cycle. The gains from free trade agreements such as advances in technology and capital equipment have effectively made Australian production far more efficient. In combination, they provide a sufficient argument to conclude that purchasing goods unbiasedly is far healthier for the economy than strictly purchasing Australian made goods. Key Words: Globalisation, Comparative Advantage, Free Trade, Economies of Scale, Economic Growth, Production Introduction As more countries move toward a market capitalist model, a broader range of substitute goods become available, and this increase in choice between substitute goods proves a time consuming issue for the average consumer...
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...Summary Leigh Dayton argues about the risk of using cannabis in her article “Dope Head” which was published in The Weekend Australia on November 5-6, 2005. She states that cannabis leads to an increased risk of mental health problems and provides some research and evidence to proof her points of view. First, the author supports her argument by referring two academic experts’ opinions to blame cannabis. Second, the author outlines some research findings which support more evidence and concludes that regular cannabis use may increase risks of psychosis. Moreover, she states out another finding that cannabis can be used to relieve distress. Third, the author notes that young brains have higher potential being damaged from cannabis and the age at which people start to use cannabis is decreasing. According to a professional journal provides by the author, the cannabis is stronger than before. Next, the author demonstrates the reason why young brains are particularly at risk. She states that is because adolescent brains are still growing and they are subject to extensive internal change. Also, she refers an expert’s research to support that reason. At the end, she outlines more findings that drug and alcohol use affects growing brains, especially parts of the brain at the front of the skull are particularly affected. Further, the author states some possible reasons that why dope smoking may impair the formation of healthy wiring in brain. Last, the author gives...
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...Australia - a Land for Men 2 3. Women in Australia 2 3.1 The “Bush-Woman“ in “The Drover‘s Wife“ 2 3.2 The role of Australian Women 2 3.3 Australian Feminism 2 4.Conclusion 2 5.Bibliography 3 6. Declaration of Authenticity 1. Introduction “[...] she fought a bad bullock that besieged the house for a day“ (Lawson 6). This would probably be a challenge for a man not for a woman. But in Henry Lawson‘s point of view this and fighting snakes and diseases are things women in the Australian bush are capable of doing as presented in The Drover‘s Wife. Henry Lawson (1867-1922) is the finest author and poet in Australia's colonial period and had a big focus on the Australian bush and life. He is famous for his works such as The Drover‘s Wife which got first published 1892 in The Bulletin - an Australian magazine of great importance. In his short story The Drover‘s Wife Lawson presents a mother with her children in a dangerous living situation in the Australian bush, “Lawson‘s story created the archetype of the pioneer bush-woman, a heroic mother left on her own by the drover husband, resigned to her fate, battling against the elements and winning“ (Carrera-Suarez, 140). Lawson, who lived in the Australian-Bush himself is able to judge which attributes are important to survive in it and so created the image of the drover‘s wife. His view of women...
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...these three issues is because there will be a large loss of market share if readers, or may better say customers, in the society change the opinions about underlying values and beliefs of News Limited and loss confidence of their future behavior; the change of laws may limit its expansion; and the unethical employment may lead to social issue in the long term. The phone-hacking scandal of one of the News Corporation subsidiaries- News of the World reflects the whole entire business. One of Murdoch’s former top executive said Murdoch invented and established this culture in the newsroom, where you do whatever it takes to get the story, take no prisoners, destroy the competition, and the end will justify the means. As being Australian arm of News Corporation, News Limited tends to be suspected that they share the same underlying value and belief as all the other subsidiaries of Murdoch’s media empire, which drives them to behave similarly. Professor Rolph, from faculty of Law at University of Sydney, said even though there is no evidence that this conduct has occurred in Australia, what mostly like to occur is an enforceable act to privacy as a result. People will defend the news that is sourced unethically. However, the Former chairman and CEO of News Ltd, John Hartigan said, the culture in News Limited is so different from that in UK. People refer a lot of the media as “red tops’ in the UK. They are very aggressive newspaper; they are very sensational,...
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...essay The similarities and differences between the Australian and Chinese Economies provide an interesting comparison of economic systems. China is one of australis closest trade neighbours and is of cultural, political and economic strategic importance to Australia. The Chinese Economy is considered a planned/command economy, where the government makes the decisions about production and investment. In comparison, the term to describe the Australian economy is a semi-planned/mixed market economy, where the private sector dictates most of the economy, with some government inva) making it the second largest economy in the world behind the United Stated in terms of economic size. The level of GDP/ capita in Australia in 2015 was $51,642 U.S dollars (listed by Knoema), which is contrasted with China’s level of G, ranking 2nd in the world with China ranking 101st in the world. Another component which is in contrast between the Australian and Chinese economy is Standard of Living, which is reliant on factors such as Human Development Index (HDI) , the popsicle index, happiness index, education index and level of healthcare. Human Development Index takes into consideration four factors: life expectancy at birth, gross national income per capita, mean years of schooling and expected years of schooling; to measure and rank countries’ level of social and economical development. While China has much more GDP than Australia, Australia has a higher Human Development Index...
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...are benefited when national income grows. The is no any scientific method of formula to measure the economic growth whereas the data, charts and other information can be helpful for strategy-makers to understand the countries’ economic positions and design a framework to guide for an effort toward development. Data are the artefacts covering measures of economic growth, such as gross domestic product (GDP) and gross national income (GNI). They also have pointers representing elements known to be appropriate to economic growth, such as capital stock, employment, investment, savings, consumption, government spending, imports, and exports (The World Bank, 2014). GDP is considered to be one of the basic indicators that assess a country’s economy growth. According to The statistics Portal (2014) GDP is defined as market value goods and services produced by using the resources and capital of the country in provided span of time irrespective of nationality. Normally, it is calculated on an annual basis and includes all public and private consumption, government expenditure, investments, and net exports. The Gross Domestic Product is primary pointers in measuring a country’s standard of living. In addition, Real GDP is a key indicator to measure economic growth since it is a measurement that takes prices changes into consideration (The statistics Portal, 2014). Real shows...
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...also in Australia still be strong to having any investment or trading business because people can accept an election and no any problem occurred following an election too. The export policy still being stable and they will not change it frequently because the government can manage the country well and people satisfy with it. The foreign company or the company that export product to Australia can trust in their stable politic and they will not afraid of any violence political problem to be their investment or exporting problem in Australia. Australia still also stays in free trade area agreement with ASEAN, Chile, Singapore, the United States and New Zealand, including Thailand too. 2. Economic Analysis The economy of Australia is a developed, modern market economy with a GDP of approximately growth 2.7% and GDP per capita $40,836 in 2010. Economic in Australia also is very interest to export product because there have high GDP and it is not fluctuate, it is quite stable. Their economic is growing everyday and also their import and export management is very good. They can manage the balance of payment that can lead to the less unemployment and increasing in income of people. This is an opportunity to export to Australia. Their people are also quite wealthy, that means their people have ability to buy any products. This can attract a lot of investment so many premium product from other countries spend a lot of...
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...Tourism Impact on Economy | Table of Contents 1. Abstract------------------------------------------------------------------------------pg. 3 2. Introduction------------------------------------------------------------------------pg. 3- 4 3. Methods------------------------------------------------------------------------------pg. 4- 6 4. Results--------------------------------------------------------------------------------pg. 6- 13 5. Discussions--------------------------------------------------------------------------pg. 13- 14 6. Limitations--------------------------------------------------------------------------pg.14 7. Conclusion--------------------------------------------------------------------------pg. 14- 15 8. References--------------------------------------------------------------------------pg. 16-17 9. Appendix----------------------------------------------------------------------------pg. 18 * 1) Abstract The purpose of this report is to examine the effect that tourism has on the economy, including its’ pros and cons. Furthermore, we also addressed one of the major concerns of the tourism industry, the sustainability of tourism, which affects an economy’s growth and planning. We utilized multiple methods in order to research this topic. We first found and read an array of key journal articles that addressed the economic effects of tourism that is found from different websites and...
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... political, and social changes in order to evaluate the continent’s growth. Australia has a population of 22,507,617 as of July 2014. The population growth rate is currently 1.09% (Central Intelligence Agency, 2014). Australia is comprised of six separate regions that are call states, and each state has their own capital. Australia’s economy has been quite strong over the years. They have experienced continuous growth, low unemployment, contained inflation, as well as very low public debt (Central Intelligence Agency, 2014). However Australia’s economic growth has been slower than expected these past few years. Between the months of July and September 2014, Australia reported a weaker-than-expected economic growth (BBC, 2014). A major cause of this inadequate growth is due to a large drop off in mining investments. Coal and iron ore are two of Australia’s biggest exports, and decreased prices have negatively affected economic growth. Analysts have reported that the gross domestic product numbers means that the nation’s economy is going below trend, and that the decline of the mining investment would be a major hurdle for the economy for up to the next two years (BBC, 2014). The Reserve Bank of Australia has always had record low interest rates, but many fear that this recent lack of economical growth could put pressure on...
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...China’s Slowdown Has a Global Impact 1. Which negative effects and in which countries will China’s slowdown cause? The fact that economic growth in China, the world’s second-biggest economy after U.S. has been slowing since 2007’s peak has made impact on the rest of the world. There are various negative effects due to slowdown such as lower energy and raw materials prices for the rest of the world. Maruli Sitorus, a palm oil plantation owner has stated that his income has been halved over the past years as prices for palm oil-used in cooking oil and fuels-have slipped. He refers this slip to the weak demand from China. However, China’s objective is to reshape its economy to be less reliant on construction and heavy industry, and more reliant on consumer spending. Mr. Sitorus, had to cut the number of workers on his 25-hectare farm from 12 to 6 and put off fertilizing his fields and fixing his trucks. Another example of negative effects of China’s slowdown took place in Australia. Anthony Walsh, managing director for Ausco Modular, an Australian company that builds temporary camps for mine workers in Karratha, a mining town on Australia’s northwest coast. He has stated that a fifth of rooms once occupied by miners flown in from Australia’s east are empty, rents went down by 20%. Due to the fall, unemployment rate in Australia, a mining powerhouse is 5.7%, it’s highest in 4 years. While China’s slowdown hurts places like Australia, it also means low energy...
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