Australia Must Diversify the Economy Essay -- The Australian Economy

The financial analyst portrays the meaning of a banana republic as â€Å"a nation ruled by outside speculation and subject to a solitary fare commodity† (The Economist. 2014). This definition has some relationship to the Australian economy as over past year’s Australia has encountered an item blast which has ruled and under stuck the nation’s economy. The advancement of the normal assets industry in Australia has developed the economy and has become the number fare for the country (Figure 1). Australia’s dependence on the ware business doesn't bolster long haul financial soundness for the country, product costs are falling as the creating scene enterprises delayed down. The Australian government must proceed with the improvement of the product business however should likewise put into growing new enterprises that will guarantee the monetary development of the country proceeds and to guarantee the country isn't reliant on the characteristic assets of the na tion. Figure 1: Composition of Exports 2009(Ian McCauley 2012) In the past the country has been a noteworthy exporter of rural items, for example, grain and domesticated animals, it had the option to make headways in the assembling business by forcing high levies on imported products. This was until universally and locally it was not practical to proceed with these monetary strategies and the Australian market was opened up with the bringing down of duties and the coasting of the Australian dollar. While this profited the economy with facilitated commerce understandings, outside speculation and an enhancement of the fare base it additionally added to the end of different ventures (Sara Cousins 2013). All through Australia’s financial history mining and the fares of wares have been ... ...conomyâ€well arranged for the difficulties ahead. [ONLINE] Available at: http://www.dpmc.gov.au/distributions/skills_for_all_australians/chapter2_the_australian_economy_of_the_future.html. [Accessed 04 March 2014]. (The Economist. 2014). The Economist clarifies: Where did banana republics get their name? |. The Economist clarifies: Where did banana republics get their name? | The Economist. [ONLINE] Available at: http://www.economist.com/web journals/financial specialist clarifies/2013/11/business analyst clarifies 16. [Accessed 28 February 2014]. (Zheng, Bloch 2012) Australia’s Mining Productivity Paradox: Implications for MFP Measurement by Simon Zheng, Harry Bloch: SSRN. 2014. Australia’s Mining Productivity Paradox: Implications for MFP Measurement by Simon Zheng, Harry Bloch: SSRN. [ONLINE] Available at: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1715235. [Accessed 03 March 2014].