National Economic Policy in Australia

Introduction Terms of trade are an important measure of economic performance. It refers to the ratio of export prices to import prices. If reflects the capacity for a given volume of Australias exports to pay for a given volume of its imports.Advertising We will write a custom essay sample on National Economic Policy in Australia specifically for you for only $16.05 $11/page Learn More Improved terms of trade is significant to Australia since it enables the country to indulge in the purchase of more imports given its level of exports to the rest of the world. However, volatility in a countrys terms of trade results in volatility in investment, consumer spending, inflation, and economic growth. Consequently it makes macro-economic management extremely difficult (Gruen 2011, p. 5). Reasons for the Main Movements in Australia’s Terms of Trade over the Last Decade Impacts of Major World Economic Events Global economic conditions have been one of the k ey drivers of Australias term of trade in the past decade. In particular, previous cycles in economic growth among Australia’s main trading partners and the Great 7 (G7) countries have often resulted in swings in Australia’s terms of trade. These swings were mainly evident in the post 2007 global financial crisis. According to Australia Treasury (2012, p. 9), Australias terms of trade has suffered from the ongoing recession in the Euro area, slow recovery in the United States and reduced demand in the emerging Asian economies. These volatilities in international economic growth rates have consequently resulted in volatility in Australias terms of trade. Diversification of Australia’s Export Base Compared to the 1970s and 80s, Australia’s volatility in terms of trade has significantly declined from the 90s to present. This decline is attributed to export diversification efforts. Australia diversified its exports especially in terms of its industrial sector (Valadkhani, Layton Karunaratne, 2005, p. 295). Traditionally, primary products were the dominant exports (mining and agricultural products).Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More However, in the recent past the country has diversified to manufacturing and of late the services sector. The performance of the country beginning from the year 200 onwards in terms of knowledge intensive exports was good. Currently, China is the leading importer of Australias services (Austrade 2012, p. 1). Decline in Price of Australia’s Exports Australia is a resource rich nation exporting metal ore and minerals. In the 1980s and 1990s, rapid industrialization and urbanization in China resulted in strong growth in the demand for Australias major commodity exports. The strong demand from Asia, and expectations that the demand will continue to grow drove commodity prices to high levels and attr acted record investments in Australias resources industry (Gregory 2011, p. 44). However, in the past decade, Australia witnessed adecline in prices for these resources in the international market in the past decade has in turn adversely affected the countrys terms of trade. For example, in 2009, slow growth in the Chinese economy resulted in a high trade deficit for Australia given that China is one of the countrys major trading partners. According to the (Australian 2012, p. 1), in October 2012, earnings from minerals and metal ore declined by 7% as a result of the falling prices in the international market. In fact major mining companies in Australia such as Rio Tinto and BHP Billiton deferred investing billions into the mining sector and instead chose close their mines because of the declining prices and Australias poor currency strength. Impact of a Decline in the Terms of Trade on the Australian Economy Mundell-Flemming Model Under the model, international and domestic interes t rates are assumed to the same. Australia being an open economy, we analyze the effect of a decline in the terms of trade in the short run using the Mundell-Flemming Model. Australias GDP (Y) is a function of consumption (C= C(Y-T); Investment (I(r)); Government Expenditure (G), and Net Exports (NX(e)). The model has three equations:Advertising We will write a custom essay sample on National Economic Policy in Australia specifically for you for only $16.05 $11/page Learn More IS equation = Y = C (Y-T)+G+I(r)+ NX(e) where Y is income, C- consumption, G, government expenditure, T- taxes, and NX(e)- representing net exports. LM equation = M/P = L (r,Y), where M/P is the money supply, L is liquidity as a function of income and interest rate. Interest Rate equation = r=r*where r is the fixed interest rate When the economy is at equilibrium, it is depicted by the diagram below: A decline in Australias terms of trade affects the economy through the IS curve. When import prices are more than export prices, the IS curve shifts inwards to the left from IS0 to IS1. Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Given that interest rates are fixed at r, the money supply in the economy reduces from LM0 to LM1. Output or income in the economy drops from Y0 to Y1, and the economy attains a new equilibrium but at a reduced level of output. These changes affect several macroeconomic variables: Australias Gross Domestic Product declines because the inward shift of the goods market (IS curve) implies reduced demand. Consumption, investment, government expenditure and net exports all decline. In addition, Australia is likely to suffer from unfavorable balance of payments. This is because more of the countrys exports will be required to purchase a given volume of imports. Similarly, as the country’s GDP declines, investments in the economy are discouraged resulting into slow economic growth and high unemployment rate. Furthermore, a decline in the terms of trade is equally likely to lead into inflation in the Australian economy. From the figure above, the inward shift in the IS curve forces t he government to pursue a contractionary monetary policy. Consequently, the amount of money in circulation is reduced. This adversely affects the economy as banks resort to tighten their lending policies. This further discourages investment by firms and households worsening the unemployment problem and slowing economic growth. The changes equally affect Australias real exchange rate. The fact that Australia’s exports can purchase few of its imports implies that its exports are cheaper. This equally indicates that the Australian dollar is weak compared to foreign currencies. Foreign countries will require less of their currency to purchase Australian dollars. However, this impacts negatively on the domestic importers. Importers must have more Australian dollars in order to purchase a given volume of foreign currency before importing products and services from those countries. Similarly, Australia will suffer from foreign exchange deficits. Given the unfavorable terms of trade, Australia will be using more foreign exchange to purchase a given volume of imports. However, with low prices for domestic products and services in the international market, the foreign exchange received from exports will be the less than the foreign exchange used to imports goods and services. Implications for Monetary and Fiscal Policy of the Decline in the Terms of Trade As already noted, a decline in a countrys terms of trade is equivalent to an increase in the price of imports relative to exports. If Australias export prices decline relative to its imports, the country will not only have a low standard of living, but will also have less ability to purchase imports. A prolonged deterioration in terms of trade can result in low GDP and poor living standards. Because of this, the objective of monetary and fiscal policy is to stimulate aggregate demand and increase exports Expansionary Fiscal Policy To stimulate demand, the government will pursue an expansionary fiscal policy by i ncreasing government expenditure and reducing taxes. From the aggregate demand function, an increase in government expenditure G will increase aggregate demand and increase economic growth. AD= C+G+I + (X-M) With a decline interms of trade, then economys real GDP falls to a low level Y0. At this level investments, consumption and output are low. The economy suffers from high unemployment. The government can correct this using fiscal policy by increasing its expenditure and reducing taxes. This shifts the aggregate demand curve outwards to the right from AD0 to AD1, income is increased from the original Y0 to Y1. The government can inject more money into the economy by investing in infrastructure and productive activities to boost output and growth. Through a reduction in taxes, some of the goods that were initially imported can be produced in the domestic economy thereby improving the countrys GDP by increasing income, output and employment. Expansionary Monetary Policy With the l ow output arising from the decline in terms of trade, the government through the central can pursue an expansionary monetary policy. The IS-LM diagram above indicates the economic changes arising from the increase in money supply. Initially, the economy is at equilibrium with output Y0 and interest rate i0. However, owing to the deteriorating terms of trade, output Y0 is too low and is characterized by high unemployment, inadequate foreign exchange reserves, high import prices and low export prices (Reserve Bank of Australia 2013, p. 1). When the central bank increases money supply, the LM curve shifts outwards to the right from LM to LM, equilibrium output increases from the initial Y0 to Y1. The central bank can increase money supply by using three tools open market operation, discount rate and reserve requirements (The Australian, 2012). All the three tools whether used together or separately will have the effect of increasing the amount of money circulating within Australias eco nomy and bring down interest rates. The low interest rates coupled with extra supply of money will stimulate Australias economy by encouraging additional expenditures on total production, in particular investment and consumption expenditures. With the increased aggregate production, the country uses more resources, creates more jobs and unemployment declines (Lowe 2012, p. 8). This is the stimulation the Australian economy needs in a situation of deteriorating terms of trade with high rates of unemployment. Given that the effects of monetary policy on the economy are not usually immediate, it is recommended that the policy should be implemented immediately there are signs of declining terms of trade. In conclusion the volatility in Australias terms of trade over the past decade has been a direct result of various factors both internal and external. These include global events; drop in commodity prices in the international market and the move by Australia to diversify its exports. Li st of References Austrade 2012, Latest from Austrade: China now Australia’s top destination for services exports – Austrade. Web. Gregory, RG 2011, Then and Now: Reflections on Two Australian Mining Booms, Centre for Strategic Economic Studies, Victoria University, Melbourne. Gruen, D 2011, The Macroeconomic and Structural Implications of a Once-in-a-Lifetime Boom in the Terms of Trade, Address to the Australian Business Economists, Sydney. Lowe, P 2012, The Changing Structure of the Australian Economy and Monetary Policy, Address to the Australian Industry Group 12th Annual Economic Forum, Sydney. Reserve Bank of Australia, 2013, Monetary Policy. Web. The Australian, 2012, Trade deficit widens as softer commodity prices hit exports. Web. Valadkhani, A, Layton, P Karunaratne, D 2005, ‘Sources of volatility in Australia’s export prices: evidence from ARCH and GARCH modeling’, Global Business and Economics Review, vol. 7, no. 4, pp. 295-310. This essay on National Economic Policy in Australia was written and submitted by user Yoselin Gill to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Personality theories;Type and Trait essays

Personality theories;Type and Trait essays Before describing the major modern trait and type theories of personality the following key terms must be defined; trait, type and personality. A personality trait represents a continuous dimension and can be defined as a broad, stable and enduring characteristic which is used to explain behaviour (Phares Pervin The major modern trait and type theories of Gordon Allport, Raymond Cattell, Hans Eysenck and the Big Five vary in their approach and methods in their attempts to understand personality, yet all share the belief that personality can be understood and individual's behaviour could be explained and described by the use of types and traits. The trait and type personality psychologists used three methods in identifying important traits and types; the lexical approach, meaning the more important a word is the more often it will appear in language, the theoretical approach which focuses on the most significant dispositions and the statistical approach where extensive data is mathamatically analysed {Liebert and Spiegler, 1990) to support their theories outlined in this essay. Allport is considered to be the founder of the modern type and trait school. Allport with Odbert, became the first researchers to conducted a lexical study of personality descriptors {cited in Ewen, 1940} and develop a system to classify traits. From the results of this study, Allport developed a theory which divided traits into three groups with varying degrees of influence; cardinal traits, central traits and secondary dispositions, which make up an individuals personali...

In the news Essay Example | Topics and Well Written Essays - 250 words - 1

In the news - Essay Example tensive research on the native tribes around the area at that time aside from everything else about the American Revolution to keep the story as realistic as possible (Frum). This focus on keeping the history accurate is what sets this game apart from other games. Aside from providing entertainment, they also aim to let people experience history in a way that exceeds that of a book or a lecture. The enhanced storytelling provided by interactivity enriches the experience and brings history to life. Knowledge about marketing tells us that setting your product apart from others is a good way to attract customers. By delving into the history and making it interesting, the game becomes more than just playable; it also becomes memorable and encourages the consumers to talk about the product to other people. By making it interesting, people will buy the product and will talk about it, encouraging other people to buy the product. It just goes to show that in marketing, even the smallest attention to details can be significant in selling a product. If they had not hired a historian, the game would have lost its uniqueness of being relatable to

Java Game Programming, any future Essay Example | Topics and Well Written Essays - 3750 words

Java Game Programming, any future - Essay Example The main feature of Java is that it is a platform independent language. The program can be written only once in Java and can be compiled in any operating system. To be simple it is write once, run anywhere. It is an object oriented, multithreaded programming language. (King 2000 ). Although a lot has been said about its exponential advancement rates, Java still remains to be a secondary language in field of game development. Legacy languages like C and C++ still remains to be the most preferred language for game developers. This is said in accordance with only considering desktop and playstation games, since they are the major players in the gaming industry. But, most of the mobile games that are used today are being developed in Java. One can find a number of games in the internet that are built using Java Applets. It can be used in developing interactive games in web as well as mobile phones. So this creates a conundrum of thoughts. The following research deals with this conundrum and aims to explain as to why Java is still not yet as successful as its predecessors and tries to list out the demerits that disable it from attaining that status. It also aims at explaining the future of Java in game development, which certainly looks promising provided, its disa dvantages are overcome. . (Marner, 2002) A game can be defined as software with the sole pur... (Marner, 2002) Games can be categorized based on the environment in which they run. They are basically classified into computer based, console based, web based and mobile based games. Current scenario in the market shows that Windows PC dominates the computer based category and Sony does the same in console categories. Since these two fields dominate the gaming world, the entire discussion is done considering only the above two technologies.(Mencher et al, 2004) Java - the language Before identifying the tools and technologies used with Java language, it is necessary to know few basic things about the language itself. First of all, it is based on Object Oriented Programming Concepts, commonly known as OOPS concepts. It involves higher abstraction level then C++ and provides more user flexibility. But still, it is far easier than C++ to learn. The important difference between these two languages is that in Java, there are no pointers and hence the learning and understanding is easier in Java. Basically, it consists of a Java platform, made up of two components; Java Virtual Machine and Java libraries. This platform instructs on how the Java program is run irrespective of the Operating System (OS) in which it is installed. The performance related issues that generally arise is due to the virtual machine. But with vast improvement in Java execution, several technologies have been developed which can be used in hand with the virtual environment. These include the H otSpot, Just-In-Time compilers and other embedded technologies. . (Marner, 2002) The current platform edition is Java SE 6 which has enhanced the user interface of application

Environmental problems Essay Example for Free

Environmental problems Essay There are numerous environmental problems facing our planet at the moment. Economic globalisation is causing destruction of rainforests in South America while boring a hole through the ozone layer, global warming occurs because of the increased emissions by transport and industries, melting of polar ice-caps is threatening low-lying coastal areas, damage of marine resources through overfishing is taking place, acid rain and pollution of soil and groundwater resources results from using chemicals and artificial fertilisers to boost crop output, incidence of hurricanes and other natural disasters is increasing. There is little consensus within both academic and lay circles as to whether the nature is able to cope with the environmental problems itself. In my opinion, ecosystems have a great potential of restoring the state of natural balance; however, the devastating influence of the humankind has significantly undermined this ability. At the dawn of the 21st century, environmental problems are looming large, and many processes are already irreversible. For instance, species that became extinct due to man’s activity could have been essential elements of certain food chains and habitants. The frequency of large-scale natural calamities, especially in the places that have been for a long time considered relatively safe, is a telling manifestation of the inability of nature to sustain its balanced state. Yet the film argues that today is exactly the day when the humanity can redeem its attitude to nature and prevent a global catastrophe. Therefore, the need for a different approach to the relations between the mankind and environment is necessary. It is imperative to carry on conservation and purification activities coupled with a persistent effort by both businesses and individuals to reduce (and, under the dream scenario, to stop) their environmentally damaging activities. Both individuals and corporations can make a considerable contribution to stopping (or at least slowing down) the degradation of the environment. In fact, many individuals seldom realize how their consumption patters are contributing to the aggravation of the situation. The culture of consumerism that constitutes the underlying philosophy of the West fuels unnecessary overproduction: reconsidering one’s consumption pattern can be the first step on the long way of saving the Earth. As Hertsgaard (2000) argues, the adoption of Western consumerist lifestyle by developing nations poses great dangers and has to be stopped before it firmly catches on. Such an approach implies not only reduction in consumption of non-essential goods and services but also buying from companies that are known to use environmentally-benign technologies in the process of production. The question as to who will suffer first, the Earth or the humans, is incorrect in its essence. Such thinking about the environment is the root cause of the imminent crisis. It is a fatal mistake to think that man is the king of nature. Indeed, our disconnection from the nature resulted in the great degree of alienation and ignorance. While human species is an inherent part of the Earth’s global ecosystems, men prefer to view themselves as ‘outsiders,’ superior to other species. Such approach brought about the overexploitation of the Earth’s resources, considerable environmental damage, and global warming. As Hertsgaard (2000) argues, in many countries, like in Sudan, environmental problems are inherently and explicitly linked to survival through the supply of food and drinking water. In China, pollution at factories equally harms humans and nature. The future of our planet in 50 years is solely dependent on the measures the humankind implements now to prevent the imminent crisis. Hertsgaard (2000) associates hopes with new environmentally friendly industries such as solar power. Given the changing attitudes towards environmental problems, growing awareness, and public policy commitment to betterment of our natural habitat, the outlook for the Earth is not as grim as some doomsayers think.

Greek Architecture And Orders :: essays research papers

Greek Architecture and Orders Greek Architecture   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Greek architecture has been noted as some of the world's finest buildings known to man kind. Such as the Parthenon, and the temples they built to their Gods, have been studied over for many years. The way these structures were built is fascinating. The Three Greek Orders of Architecture   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Greek architecture is broken down into three orders. These orders were determined by the way that the top or capital of each column was sculpted. The first order was called the Doric Order. This was the most simple of the three. It was only meant for sturdiness, not for beauty. The second order was called the Ionic order. They had capitals sculpted like spiraling scrolls. They too were not that beautiful, but very sturdy. The third was the Corinthian Order. Ta the top of each capital of this order were carved Acanthus leaves. They were very beautiful, but not quite as sturdy as the other two. The columns were sometimes replaced with load-bearing statues called Caryatids. Greek Homes   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Greek houses were probably the most common of all buildings. They were built out of mud, and bricks. They all had a few rooms for dining, cooking, bathing, and sleeping. To conclude about Greek homes, most Greek citizens spent their time away from home, so little architectural specialties were put into the households. Ancient Greek Temples   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Greeks spent alot of hard work, time and effort into the temples they built for their gods. This was where the three orders were put into effect. The Doric, Ionic, and Corinthian orders were popular forms all over Greece. Greek temples were made of stone, some were made of Marble. The Greeks constructed many acropolises, one famous one was the Partheneon.

Committee on reorganization

Leone P. Aboard, DVD, which basically aims for appropriate alignment of descriptive titles of seventeen (17) positions to be reconciled to actual nature of work rendered by the respective incumbents thereto under the Office headed by the latter, entails no change In salary grade levels and/or step Increments. The Local Government Code of 1991 (Republic Act No. 160) gives the lawful authority to the Sanguinary Penalizing the determination of positions paid wholly or mainly from the provincial funds (Section 447), to which the subject Letter- Request pertains.However, Section 325(f) of the same law provides a limitation for the exercise of such authority by the SP, to wit: â€Å"(f) No changes in designation or nomenclature of positions resulting in a promotion or demotion in rank or increase or decrease In compensation shall be allowed except when the position is actually vacant, and the filling of such positions shall be strictly made In accordance with civil arrive law, rules and r egulations. The subject Request of the Honorable Governor complies with the Limitation abovementioned. In fact, it does not consist of promotion or demotion or of increase requesting Office had identified only twelve (12) positions to be re-titled. Because presently held by incumbents, such positions to be re-titled are requested in consonance with the certification issued by the Human Resource Management Office (HARM) of the Province.Thus, the positions of one Livestock Inspector V (Item No. 7) and four Livestock Inspector VI (Item No's. And 6), as originally listed by the questing Provincial Veterinarian, had been excluded due to the finding made by the Office of the Governor of the absence of approved Qualification Standards to be met by the incumbent appointees thereto set forth by the Civil Service Commission, and as another requisite to be met so pointed out in the certification issued by the HARM.