Impact of Global Events on the Australian Economy

Jamie Z 2024-05-23

Learning Goals

• Understand the impact of global events on economic activity
• Understand how Australia interacts with global participants
• Explain Australia’s role as a trading nation in Asian region

International Trade

• Investment funding for projects, businesses and industries
• New businesses and increased employment in the domestic market
• Stronger trade relations
• Greater prosperity for future Australian Economy

Foreign Exchange Market

Depreciation lowers the value of the dollar

Benefits: Allows owners of foreign currencies to buy more Australian goods

Costs: Increases the price of imported goods, overseas travel and foreign investments

Appreciation increases the value of the dollar

Benefits: Price of imported goods, overseas travel and foreign investments fall

Costs: The competitiveness of Australian exports declines