Will the alternative Boom bust us?
Since the onset of the global financial crisis, the Australian parsimony has remained snappy in marked contrast to the downturn experienced by other advanced economies (Department of Treasury, 2009-2010; Department of Foreign Affairs and Trade, 2010). Primarily, the see to it growth rates recorded during this period have been influenced by increasing Asian demand for our resources combined with high commodity prices (Reserve Bank of Australia, 2009, p.8 & p.40; DFAT, 2009-10; DFAT, 2010; Australian Bureau of Agricultural and Resource Economics, 2010). However, the changing composition and direction of Australias worldwide peck has raised concern amongst some analysts who believe that whilst the shift towards a heavily commodity-focused export base has contributed positively to our economic performance, the implications for Australias economic vulnerability and long- term prosperity must be also be considered. It will be argued in this article, the widen of our export base would help to minimise the risk of incoming economic shock and the resultant threat to our long term prosperity.
The influence of changing trade patterns
Firstly, in determining 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. Data released by the Australian Bureau of Statistics shows that over the last decade at that place has been an increase in trade between Australia and 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 want to constrict a full essay, order it on our website: Orderessay
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