australia's place in the global economy (1 Viewer)

[Kupow pow]

i need help!!......."examine australia's recent balance of payments performance, distinguishing between short and long term factors influencing the current account deficit".......anyone out there that can help meh???....

 

[ae]

talk about Net Income, cause thats the current problem Australia is facing.
ie. money flowing out of Aus from investment (portfolio usually)

EDIT: Net income is the cause of CAD

 

[olay]

Do u have Dixon? if so, on pg 79 theres the table of Balance of payments for the last 3 or so yrs. IF u look at 2000-01, theres actually a surplus in the goods balance, but the net income is greater than surplus...which means we've got a current account deficit. [net income = interests & dividents payed overseas. and if this helps... we pay out more in interest than in dividends]. hope that helps??

oh and also, with the long term effects...it keeps piling on cause we borrow from other countries/sell assets to pay off the deficit and end up having to cough up more to cover the interest on either of those. <-- hmm actually, don't quote me on that one. i think its right but i'm not 100% sure.

 

[santaslayer]

my teacher said that australia is a small fish in a big pond......lol (supposedly their place in the global economy)

 

[rukawasan]

dont 4get to mention appreciating AUD...

 

[skypryn]

also its vital to dicuss gov't actions against increasing foreign debt. eg micro and structural reform (away from commodities towards services/manufatcures) and also macro policy, such as the budget surpluses on fiscal policy from ~97-2000, as an attempt to repay capital and why they failed. yeah discuss debt cycle, CAD and KA. also mention our increasing reliance on trade, link to globalisation, reducing protection etc.