Australias Place in the Global Eco. Essay Pls Help!!! (1 Viewer)

[scraz51]

Hey everyone,

I really need some help on this essay i have been given:

"Examine australias recent balance of payments performance. Discuss recent policy initiatives associated with australias balance of payments."

Please help someone??? Will be much appreciated.

 

[sNiPeR_24]

In brief, Australia's balance of payments, in particular the Current Account Defecit has been worsening consistently each year.

This is due mostly to the fact that Australia seeks international debt financing from overseas which has to be paid back in full plus interest. This further increases the Current Account Defecit, so Australia borrows from another country again to service the debt (a viscious cycle). For this reason our CAD has blown out to over $400 billion.

The main recent policy initiatives Australia has engaged in with regards to the balance of payments is that the government is more geared towards equity financing rather than debt financing as in the short run it is cheaper - only dividends are paid out to investors rather than the whole sum plus interst - but in the long term increases the volatility of the Australian Dollar and increases the vulnerability of the economy to external shock and erractic investor sentiment... It also happens to create a long-term leakage of funds from the economy to overseas investors which eventually adds to the woes of Australia's persistent Current Account Defecit.

This is just a brief outline, but I hope it helps There are plenty of resources on the internet that could explain this much better than I could though - just go looking for them.

 

[scraz51]

thanks so much man

 

[sNiPeR_24]

No problems

 

[FD3S-R]

guys can someone give me a good structure to write eco, essays, i wrote them like english ones and i got owned

 

[Ednaw]

guys can someone give me a good structure to write eco, essays, i wrote them like english ones and i got owned

hahaha theres a guide in another thread dude.....umm check that out.