Australia Is A Small Open Economy - 1428 Words

Australia is a small open economy situated in the South Pacific with a population of 24,012,901 (ABS 2016). Australia is classified as a mixed market economy because although the private market makes most economic decisions, government intervention modifies this behaviour through its legislative powers as this gives confindence to government powers to change economic decisions and make it a rule to the people of that country. The People’s Republic of China, with a population of 1.295 billion people (2003), when contrasted to Australia is a much larger economy with a Gross Domestic Product of US$1,000Billion more than Australia’s. China is located to the North of Australia in Asia. In terms of Gross Domestic Product (GDP) China, with a GDP of US$1657.6 Billion (2004), has a much larger economy than Australia with just over one third the size of China’s at only US$622.7 Billion (2004). Australia’s real GDP growth as a percentage change year on year from 1999-2004 averaged 3.45% and was highest in 1999 at 4.3%. Since Australia is an Advanced Industrialised Economy it has a relatively low inflation rate compared to China which is a Developing Economy with an average growth year on year from 1999-2003 at 8.2% with a peak at 9.4% in 2004. Table 1 ECONOMIC INDICATORS FOR AUSTRALIA AND CHINA (2007-2014) (ABS, 2014) Economic Indicator Australia China GDP (US Billion 2004) 622.7 1,657.6 GDP per capita ($US) 30,695 1,270 Exports (% of GDP) 18.6% 34.5% Imports (% of GDP) 22.2%Show MoreRelatedAnalyse the effects of domestic and global free trade and protection policies on the Australian economy1144 Words   |  5 Pagesï » ¿Analyse the effects of domestic and global free trade and protection policies on the Australian economy Free trade is the unrestricted purchase and sale of goods and services between countries without the imposition of protection such as tariffs and quotas. This enables economies to focus on their core competitive advantage(s), thereby maximizing economic output and fostering income growth for their citizens. Australian exports rose from $66.6 billion in 1990-91 to $300.4 billion in 2012-13, withRead MoreA Country Is Authoritarian Or Democratic Is Not A Choice1037 Words   |  5 Pagesis no one factor that makes a country democratic or authoritarian, but the degree of capitalism that is implemented in a country is the most effective factor in determining a countries regime type. Australia and North Korea are two countries, which have two completely different regime types and economies. Using these countries as examples, I will show how capitalism is the most important factor in the regime type of any country that exists in the world today. I will first give a brief introductionRead MoreCase Study : Hybrid And Autonomous Technologies1558 Words   |  7 Pages This would focus on hybrid and low carbon models. In addition, bringing RD processes for autonomous vehicles to Australia prepares Toyota Australia for this emerging market. Autonomous models that are produced and tested in Australia will provide a first mover advantage for Toyota Australia in the Australian market. Other manufacturers will take longer to bring models to Australia and are likely to require government support to establish their models in the local market. The addition of a technologyRead MoreMacro Environment Analysis1011 Words   |  5 Pages Political Legal Australia government help established trade policies to protect local clothing industries from imported good through high tariffs, quotas, and subsidies. According to Jayanthakumaran (2001), the World Trade Organization (WTO) and the Asia Pacific Economic Cooperation (APEC) have planned to remove the protection on Textiles, Clothing and Footwear (TCF) industries in Australia. Regarding the intense competitions over TCF industries globally, Australia and western industries didRead MoreImpact Of Trade Relations On International Trade1485 Words   |  6 Pagestechnological and global age, forming trade relations is vital to our economy. Every country has different trade policies which determine how trade occurs between themselves and other countries. The government has various roles in its policy and even though there is a lot of debate over what this should be exactly, the highest amount of benefits occur when they strive for free and open trade. The success of our countries economy i n terms of both growth and development depends on the government’s commitmentRead MoreAmusement And Leisure Industries And Indoor Playground Sector1483 Words   |  6 Pagesfor 2000-01 was $137 million, of which more than half ($73 million) was received as takings from coin operated amusement machines. Other major income sources were playing fees/admissions ($42 million) and sales of goods ($17 million) (Year Book Australia, 2006) Kids indoor play centre is a fast growing sector. Besides having a good time, there are many benefits to children to be involved in active play. Studies have shown that it is also a major factor in the appropriate mental, social, emotionalRead MoreAustralian Securities And Investments Commission1690 Words   |  7 Pagesdecade the Australian economy has experienced continuous growth and has featured contained inflation, low unemployment and a strong and stable financial system. By 2012, Australia has experienced more than 20 years of continuous economic growth, averaging 3.5% a year. Australia was comparatively unaffected by the global financial crisis (GFC) in 2008 as the banking system remained strong and inflation was controlled to a manageable point, this event has benefited Australia as a whole allowing theRead MoreMacroeconomics and Grocery Stores Industry1375 Words   |  6 PagesCompany overview Key information of the Woolworth Woolworth (WOW) is an Australia corporation with more than 195,000 employers which operates business in grocery stores industry which was founded by Percy Christmas in 1924 (Woolworths, 2012). Its manages 3,000 stores which are located in New Zealand, Australia and India serving 28 million consumers for liquor, span food, petrol, home improvement, hotel and general merchandize (Woolworths, 2012). First, the company WOW operates supermarkets underRead MoreEffect Of Factor On Foreign Investment1231 Words   |  5 Pages3.0 Findings Over the last decade, Australia has experienced up and downs throughout the levels of foreign investment. Only today, it is currently the lowest rates it has even been throughout the ten-year period. It can be easily seen in Figure 6 that the highest rate was ($ in AUD million) $59,932 and the lowest was $29,636 (tradingeconomics, 2016). Exactly at this moment, in 2016 we are on the lowest foreign investment level rates has experienced since 10 years ago. This proves the need for changeRead MoreAustralia s Support For Free Trade1679 Words   |  7 Pagesforeign imports. Since the 1970s Australia has made policy changes to reduce levels of protection and to promote free trade - in order to stimulate greater industrial efficiency and to lower the prices of imported consumer, intermediate and capital goods. In its entirety, average tariff levels in Australia have continued to drop in recent years – falling from 9% in 1944 to 1.3% in 2014, highlighting Australia’s support for free trade on a global level. Australia has also been continually involved