WHY TF DO I JUST SEE THIS QUESTION NOWFrom the 2022 HSC -
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thanks bro appreciate itHey I remember doing this question a few months ago. Here are my pointers;
- Begin with a definition of the BOP
- Always make a plan before you start writing an essay
- Make sure to mention ALL components of the balance of payments. However, you will probably have a bigger focus on the trade balance and NPI
- Remember that the value of the AUD is caused by supply and demand for the currency. Every effect you mention should mention how and whether it affects supply or demand and in what way. Include a s-d diagram if you want to.
- Don't confuse the relationship - remember that each argument is bringing up a theory or trend in the BOP, then explaining the effect on the AUD. Don't fall into the trap of writing an exchange rate movement as a cause, and trend in the BOP as an effect.
- Refer to what 'analyse' means in the NESA directive terms page.
You might be wondering about the stimuli for that question as I noticed they are not in the uploaded hsc paper. From what I remember there was one stimulus about the movement of the AUD against the USD, and one about the terms of trade. Can't remember the third one soz. Good luck.