Paradox of Plenty

The Paradox of Plenty Will the alternative Boom find us? Since the onset of the global financial crisis, the Australian stringency has stay puted snappy in marked contrast to the downturn experient by other advanced economies (Department of Treasury, 2009-2010; Department of Foreign personal matters and Trade, 2010). Primarily, the see to it growth rates recorded during this period construct been influenced by increasing Asian demand for our re pedigrees combined with utmost commodity prices (Reserve Bank of Australia, 2009, p.8 & p.40; DFAT, 2009-10; DFAT, 2010; Australian Bureau of clownish and Resource Economics, 2010). However, the changing composition and snap of Australias world(a) peck has raised concern amongst some analysts who believe that whilst the firing towards a heavily commodity-focused export base has contributed positively to our stinting performance, the implications for Australias economic vulnerability and large- term prosperity must( prenominal) be also be considered. It will be argued in this article, the widen of our export base would help to minimise the adventure of incoming economic shock and the resultant threat to our long term prosperity.

The influence of changing alternate patterns Firstly, in find whether Australias changing export base will expose the economy to future shocks and threaten its long-term prosperity, the trends relating to the composition and direction of international trade will need to be identified. information released by the Australian Bureau of Statistics shows that over the last decade at that place has b een an increase in trade between Australia a! nd developing economies such(prenominal) as China and the ASEAN countries. Interestingly, the US and the EU remain pregnant but only as a source of imports. skeleton 1 provides a snapshot of these changing trade patterns. Additionally, designing 2 illustrates that whilst the composition of trade imports has been relatively stable, Australia has experienced a narrowing in the composition of its export base...If you requirement to constrict a full essay, order it on our website: OrderCustomPaper.com

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