Australian dollar Essay

The Australian federal Budget is the Government’s annual financial report that sets out Australia’s proposed fiscal income and spending for the upcoming year through careful planning and prudent saving. The budget provides structure, financial record and discloses Australia’s priorities by providing allocated funding to specific sectors and departments of state.

To conclude, exchange rate will affect BRG’s revenue and net profit. If Australia and the other markets of BRG were to experience high unemployment rate, low GDP growth rate and weak consumer sentiment, this will surely be negative to BRG’s sales. Moreover, the population of Australia is relatively stable as it is a developed country, hence, further population boom which could results in demand boom for kitchen appliances

Australia became a commonwealth of the British Empire in 1901. It was able to take advantage of its natural resources to rapidly develop its agricultural and manufacturing industries and to make a major contribution to the British effort in World Wars I and II. Now, Australia has a prosperous Western-style capitalist economy, with a per capita GDP at the level of the four dominant West European economies. Rich in natural resources, Australia is a major exporter of agricultural products, minerals, metals, and fossil fuels.

I actually really enjoyed the video. It made me think about things that I honestly never thought about. I thought it was interesting how our currency compares to other countries. Especially when Neil deGrasse Tyson brought up how although we do have a scientist on the back of our money that the back of ot has nothing to do with that scientists achievements. Firstly, I would change the five dollar bill from having Lincoln on it to Rosa Parks and on the back I would put a picture of the old buses that were used during the time when the bus boycotts happened. Although she was not the only person to refuse to move to the back of the bus, she helped kick start a major movement. I would put her on the five dollar bill, because it is a very common bill, so most people would see it very often. She was an amazing person and everyone needs to be reminded of what she did/ started on a regular basis.

Exchange rates fluctuate in response to a multitude of factors. Upswings and downswings in the exchange rate can have both positive and negative consequential effects. Depreciation drops the value of the dollar and permits owners of foreign currencies to purchase a greater amount of Australian goods. Hence, depreciation makes Australian exports cheaper and accordingly

The Australian economy marks external stability as an important objective because it can influence other important aims such as economic growth, unemployment and inflation. External stability is the concept of sustaining a nation’s external accounts so that in the future, it is able to service its foreign liabilities and can avoid currency volatility. When looking at external stability, we must examine Australia’s balance of payments, which records all economic transactions between Australia and the rest of the world. Australia’s balance of payments has two components, which is the current account and the capital and financial account. The current account measures the receipts and payments for trade in goods and services, transfer payments and income flows, while the capital and financial account shows international borrowing, lending, purchasing and sales of assets.

Australia’s Position in the global exporting market is only 22nd, which is far from its leading top trade partners that fit in the Top 5. Also, Australia’s global ranking in the global importing market is 18th, which is under India whose economic status is much lower than Australia. A second disadvantage that Trading brings to Australia is the competition between local small businesses and Trans National Corporations (TNC). Local businesses are closing down and being taken over because of the increase in the entrance of TNCs in Australia. Large Fast food chain Corporations like McDonalds, put local fish and chips shops under pressure. Another disadvantage with Australia being part of International trading is that most of the products that Australia export are agricultural goods that has high tariffs, making it costly for Australia to be able to export.

With more and more countries taking part in the international trade, the world’s market is expanding in a rapid pace. How to make use of the enlarging market and remain competitive become urgent for those participants. Market diversification is a good way to take full advantage of the resource and improve the efficiency by enlarging the business scope. In addition, it can also ease the pressure of competition and reduce the cost. The report mainly discuss that Australian Holden may enter Chinese market and chooses Shanghai as the target market. The report firstly analyzes the Australian and Chinese market and briefly

Alternatives: There are three approaches to address the worldwide issues listed above. In an aggregation approach, Bimbo can decide to operate the way it does in Mexico across all borders. By doing so, it would benefit from its efficient local practices in manufacturing and distribution but will ignore local or regional needs. In an arbitrage approach, Bimbo can take a transnational approach, maintaining their current products while taking each region or country’s needs in consideration and doing business in local markets with the product and delivery system that meets their necessity. In an adaptation approach, Bimbo could take the specific needs of each location seriously and customize their products, distribution channels, marketing, and various efforts in order to specifically satisfy each market individually.

     In the present day, the world's economy is ever-changing and adjusting. Many different reasons control the reasons for this. The future of currency is something that can only be predicted and is not guaranteed. However, there are many determing factors behind the changes that can take place. Asia and North America are two continents that have economies that have recently changed or are in the midst of change.

So, keeping those in mind the company can adopt a localization strategy in international markets; in every market that they have entered they may produce products just like they did to Asian people. Furthermore, lower prices can show products less qualified in international markets, especially in Europe and America, for those markets the company can came up with an alternative product line that is more niche.

Source: "G-20 Should Mull Currencies Agreement, Niall Ferguson Says" by Brett Miller Bloomberg.com, October 12th, 2010 Group of 20 leaders meeting next month ought to discuss a plan to strengthen undervalued currencies, similar to the Plaza Accord in 1985, Harvard University historian Niall Ferguson said. “The real currency war is actually between Chimerica -- China plus America -- and the rest of the world,” Ferguson said in an interview at the World Knowledge Forum in Seoul. “It would be much better to have some kind of Plaza-like international agreement and I very much hope that at the G-20 summit in Seoul next month this will be No.1 on the agenda.” The Plaza Agreement reached in 1985 prompted a decline in the U.S. dollar against its Japanese and German counterparts. Brazilian Finance Minister Guido Mantega said last month that a “currency war” was under way, in which economies are weakening currencies to support exports. At an International Monetary Fund meeting this month in Washington, finance chiefs failed to narrow differences over currencies, with China accused of undervaluing the yuan and low U.S. interest rates criticized for flooding emerging markets with cash. “Currency appreciation is necessary,”

Under a stronger value currency, a country’s export goods will become more expensive, but its import goods will be cheaper when trading in domestic markets. In contrast, under a weaker value currency, the goods which are exported will become cheaper, and the goods imported will be expensive. From the case, as the British aero engine manufacturer, Rolls-Royce does business with American air frames. Due that U.S. dominance in civil

Li Tiandong and Jiang Boke (2006) point out that the relationship between exchange rate and employment depends on the coaction of three mechanisms: (1) the effect of exchange rate changes on aggregate demand; (2) the effect of exchange rate changes on prices of capital goods; (3) the substitution effect of exchange rate changes on the relationship between physical and human capital.[4]

Depreciation of currency usually has no major effects on Alsi Cola they very don’t do imports & exports on giant scale. They struggle to be native market homeward-bound, they keep a minimum of one company in hand plant in an exceedingly country.