Changes on global economy impact BOP (1 Viewer)

[beggs_69]

Analyse the impact of changes in the global economy on Australia's Balance of Payments?

I need some help on thi essay questions. If anyone has any ideas or a structur i could use to answer this thatll be gratly appreciated.

Thanks

 

[HayleeKate]

That sounds like a tough essay, dont know if I have enough to write a whole essay on it, but here's some starting points:
Globalisation would be the focal idea, I think.
Trade liberalisation --> greater dependency on imports from cheaper nations --> CAD
Financial deregulation ---> suceptible to fluctuations due to changing XRate
Financial market deepening ---> more foreign debt and borrowing
Trade blocs ---> change in the composition of trade, alway from EU to APEC, affects what we trade in, and the values of exports/imports.
More susceptible to global shocks---> instability, fluctuations in BOP

I'll keep thinking, but thats a start I hope.

 

[Rafy]

Also the growth of China fueling massive increases in global commodity demand.

 

[nick1048]

I think the question found here is similar:

http://community.boredofstudies.org/showthread.php?t=86847

I've posted a rather comprehensive response to this question if you care to take a look.

With regards however to Haylee's reply, I don't think globalisation would be the main focus. The main idea is the concept of the Balance of Payments, so you would need to define that and discuss it in terms of the Australian context. Then you would move onto to Haylee's excellent points which are all very accurate and answer the question. Everything you do state in this response must have something to do with the BoP. Do not fall into the trap of raving about the global economy and the process of globalisation. Globalisation is merely an alteration in contemporary economic circumstances, your job is to analyse these new circumstances and their effects of Australia's BoP.