First, Australian Dollar. Australia is one of the largest capitalist economies in the world with a GDP of USD 1.57 trillion. The Australian economy is dominated by its service sector, comprising 68% of GDP. Besides, the Australian Securities Exchange is the largest stock exchange in Australia and in the South Pacific and ranks 9th in the world in terms of market capitalization. Australia is home to some of the largest commodity companies in the world which are also the 10 largest companies in Australia, including BHP Billiton, National Australia Bank, Commonwealth Bank, Rio Tinto Group, ANZ, Westpac, Telstra, Macquarie Bank, Woolworths and AMP.
During the year 2012, Australian Dollar (AUD) is the 5th most traded currency in the world, accounting for 7.6% of the world’s daily share. The Australian dollar is popular with currency traders because of the comparatively high interest rates in Australia, the relative freedom of the foreign exchange market from government intervention, the general stability of Australia's economy and political system, and the prevailing view that the Austra...
Besides the high crime rate that has been given by England. Australia also shares a similar culture with England. The people speak English with a similar axsent of England’s. People also eat a lot of the same foods that people in England eat. The type of government in Australia is also the same, except Australia has a prime minister, not a king, or
Australia, like all economies, is a mixture of all three, a market economy, a planned economy and a traditional economy. A market economy is formed when a buyer and seller get together for the purpose of an exchange where the medium of exchange is money; it is often referred to as a laissez-faire. Decisions on the three fundamental questions are made by the private sector. In a planned economy, the government plans what should be produced, how the goods and services should be produced and for whom the goods and services are produced for. The government plans the overall running on the economy and when the government makes the decisions on the three fundamental questions, producers are told what to do. There is no pure planned economy in the world today. In a traditional economy, the answer to the three fundamental questions for what to produce, how to produce and for whom is based on customs that have developed of many years, including religious beliefs and the need for survival. Traditional economies are said to be self-sufficient and most goods and services are produced by workers and not through the use of
Westpac Institutional Bank May 2010, ‘Westpac Market Insights Australia, New Zealand, G3 & China’. Retrieved June 6th, 2010 from - http://www.westpac.com.au/about-westpac/media/reports/australian-economic-reports/
Strong or Weak Dollar is Better? Strong is good. Weak is a bad thing. These generalizations sound simple enough, but they can be very confusing when it comes to money.
"Australia." Economy: Population, GDP, Inflation, Business, Trade, FDI, Corruption. N.p., n.d. Web. 2 Dec. 2013. .
The coins made in gold, silver and bronze were traded during Roman Empire and the shortage of coins created a barrier for money circulation. However with the establishment of paper money, a sophisticated banking, global clearing system and electronic money, the global financial system evolved with a worldwide framework of legal agreements. In the Global Financial market, foreign currencies issued by the world, countries are traded by the buyers and sellers using currency exchange rates. Now a day, it is very common practices of companies in one country to raise capital in a foreign country by listing their stocks on major foreign exchanges given the growth of equity markets are becoming more globalized (SNHU, 2015).
Over the past five years the Australian economy has gone through many changes experiencing both the peaks and troughs associated with business cycle.
Australia has had one of the most outstanding economies of the world in recent years - competitive, open and vibrant. The nation’s high economic performance stems from effective economic management and ongoing structural reform. Australia has a competitive and dynamic private sector and a skilled, flexible workforce. It also has a comprehensive economic policy framework in place. The economy is globally competitive and remains an attractive destination for investment. Australia has a sound, stable and modern institutional structure that provides certainty to businesses. For long time, Australia is a stable democratic country with strong growth, low inflation and low interest rate.(Ning)
Despite the fact that recent reports have shown that the Chinese currency is currently facing descending pressures, it is, however, likely to improve in the future because of the enhanced terms of trade, current account surplus that is growing, and high net saving. Another reason that will make the Chinese RMB to do well in the future it is because the currency has solid fundamentals and the economy of the country is significantly increasing at a higher rate than the GDP rates. Due to the growing Chinese economy to being the second largest economy, the Chinese currency yuan has been acknowledged by the International Monetary Fund (IMF) as a major global
International investing is something that many investors find that they can benefit from for many reasons. Two of the main reasons why investors choose to invest in foreign markets are growth and diversification. Growth allows investors the potential to take advantage of new opportunities in foreign emerging markets. International markets can potentially offer opportunities that might not be available in the United States. Diversification allows investors to spread out their risk to different markets and foreign companies other than those just in the United States allowing them to potentially create larger returns on their investment as well as reducing risks. (U.S. Securities and Exchange Commission, 2012) While investing internationally can be a very lucrative and rewarding decision, there are also extra risks involved with investing internationally. One of the main risks that international investors encounter is foreign exchange risk also known as currency risk. Currency risk is a financial risk that is created by contact with unforeseen changes in the exchange rate between two currencies. These changes can cause unpredictable gains or losses when profits from investments are converted from a foreign currency to the United Stated dollar. There are precautions that can be taken by investors to potentially lower their risk of currency value fluctuations and other risk factors that are present in international investing. (Gibley, 2012)
Walker, Bruce. "Euro Likely to Keep Losing Value." The New American. The New American Magazine, 7 July 2010. Web. 23 May 2011. .
Fixed exchange rate which is at times known as pegged exchange rate is an exchange rate regime where a country’s currency value is fixed against the value of another currency or to another measure of value such as gold.
The leading model, Monetary Model links exchange rate movements to the balance of payment, which is used for medium to long term analysis. The following assumptions cons...
The foreign exchange market is one of important mechanism in the international business because foreign exchange is an intermediary for all nations in term of the growth of the economy. There are many functions of foreign exchange market in the global economy. In the international business, it uses the foreign exchange markets in four ways. First, the pay...
(FIX) Living in the world today, as a global society, we have become increasingly connected and continue to do so with each passing year. Individuals across the globe find it has become significantly easier to transport goods/services from country to country.