Short Answer
1. Outline recent changes in the direction and composition of Australia's trade flows.
2. Explain why foreign direct investment might be preferrable to portfolio investment.
3. What is the balance of payments? Outline the structure of the two main accounts of the balance of payments.
4. Explain the relationship between the current account and the capital and financial account.
5. Look at Australia's recent balance of payments performance. What short term and long term factors are influencing the CAD?
6. How do international borrowing and foreign investment impact on Australia's balance of payments?
7. Discuss the impacts of structural and cyclical factors on the net primary income.
8. How have recent movements in Australia's terms of trade impacted on the current account?
9. What impact does Australia's level of domestic savings have on the balance of payments?
10. Discuss the positives and negatives of a high CAD.
Thursday, February 21, 2013
Exchange Rates
1. Define the term exchange rate.
2. Outline the factors that can affect demand for the AUD.
3. Outline the factors that can affect the supply of AUD.
4. What is the difference between a fixed exchange rate and a floating exchange rate?
5. Explain the effects of a currency appreciation on imports and exports.
6. Define the term trade weighted index. Explain why it is useful when analysing movements of the AUD.
7. Explain how the RBA can influence the exchange rate.
8. In the long term, how can a depreciation of the AUD increase international competitiveness?
9. How has the appreciation of the AUD between 2003 and 2008 and between 2010 and 2013 caused structural adjustment in the Australian economy?
10. What are the positive and negative effects on the balance of payments when:
(i) there is an appreciation of the AUD
(ii) there is a depreciation of the AUD
2. Outline the factors that can affect demand for the AUD.
3. Outline the factors that can affect the supply of AUD.
4. What is the difference between a fixed exchange rate and a floating exchange rate?
5. Explain the effects of a currency appreciation on imports and exports.
6. Define the term trade weighted index. Explain why it is useful when analysing movements of the AUD.
7. Explain how the RBA can influence the exchange rate.
8. In the long term, how can a depreciation of the AUD increase international competitiveness?
9. How has the appreciation of the AUD between 2003 and 2008 and between 2010 and 2013 caused structural adjustment in the Australian economy?
10. What are the positive and negative effects on the balance of payments when:
(i) there is an appreciation of the AUD
(ii) there is a depreciation of the AUD
Protection in Australia
1. Outline the trends in Australia's protection levels over recent decades.
2. Explain the government's main objectives in reducing protection levels.
3. Distinguish between a bilateral trade agreement and a multilateral trade agreement. Give two examples of each type of trade agreement that Australia is involved with.
4. Outline the impacts of reduced protection on economic growth, unemployment and inflation in the Australian economy.
5. What will be the short term and long term effect of reducing tariffs on government revenue and expenditure.
6. Discuss the impact on Australian exporters when foreign governments increase protection.
7. How has the level of subsidies in foreign agricultural industries caused structural change in the Australian agricultural industry.
8. Outline possible future changes in the Australian economy as a result of current trends in the global economy. Give specific examples.
2. Explain the government's main objectives in reducing protection levels.
3. Distinguish between a bilateral trade agreement and a multilateral trade agreement. Give two examples of each type of trade agreement that Australia is involved with.
4. Outline the impacts of reduced protection on economic growth, unemployment and inflation in the Australian economy.
5. What will be the short term and long term effect of reducing tariffs on government revenue and expenditure.
6. Discuss the impact on Australian exporters when foreign governments increase protection.
7. How has the level of subsidies in foreign agricultural industries caused structural change in the Australian agricultural industry.
8. Outline possible future changes in the Australian economy as a result of current trends in the global economy. Give specific examples.
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