economics allnighter crew (4 Viewers)

[sumthingreal]

nice allnighter. IM IN BOYS

 

[Randox]

Hmmm many ways to answer this I'm guessing? The strengthening of protectionist policies, such as the increase in general tariff levels, may see a rise in the international competitiveness of firms in the very short term as they are able to compete to a larger extent with imported foods. As such, this may increase employment levels as the demand for labour increases. This will see the average level of income in the nation consequently decrease, assuming ceteris paribus, and as such decrease inequality in the short term. However, it also evident that protection levels increase inequality. The EU spent 33% (155 billion euros) of its income in 2011 on the common agricultural policy. This largely restricted devolving nations from trading with many European nations. Developing nations rely on agricultural production for income and as such the large protection on agricultural exports has seen inequality increase in some nations, making the strengthening of protectionist policies ineffective as a soloution to global inequality.

Someone mark it please

Bump lol

 

[MichaelLy]

Causes and effect of CAD?

- excessive international borrowing from australia due to a low level of national savings, this results in high servicing cost
- infrastructure bottleneck: australia has one of the worse ports in the world, this means we are unable to export to our full potential, limiting the BOGS hence rising the CAD
- narrow export base - australia exports low valued added products (minerals which are heavy and are quite cheap) and import high value added products (eg. iphones light but expensive) this results in our BOGS being very low

 

[johnny_boy12]

Causes and effect of CAD?

I believe CAD is caused by a worsening in a countries TOT=terms of trade which is exports/imports.
The effect of CAD will increasing a countries foreign debt hence making it more volatile to shocks. But thats my opinion.

 

[makakandchesse]

- excessive international borrowing from australia due to a low level of national savings, this results in high servicing cost
- infrastructure bottleneck: australia has one of the worse ports in the world, this means we are unable to export to our full potential, limiting the BOGS hence rising the CAD
- narrow export base - australia exports low valued added products (minerals which are heavy and are quite cheap) and import high value added products (eg. iphones light but expensive) this results in our BOGS being very low

Thank you

 

[leesh95]

In the short run strengthening might increase equality. Developing economies lack the comparative advantage in many areas of production compared to advanced economies due to low levels of technology, investment etc. Thus strengthening protectionist policies will protect the industries in these countries from competing with stronger industries from advanced economies. This will result in increasing growth in their industries, increasing demand for labor and thus high levels of income. Protection will also protect these economies from the effects of international business cycle and thus increase income equality since they won't rely on the global economy to maintain economic growth levels.

However protectionist policies by advanced economies also damage developing economies. Their main export is agriculture and most world economies have very high protection levels in this area e.g. EU 30%, Japan 20%. Thus limiting their ability to engage in world trade and decreasing income levels. Therefore its evident that in the long run protectionism decreases income equality.

 

[MichaelLy]

Thank you

no worries, so how does protection affect individuals, firms and the government?

 

[johnny_boy12]

If we get a question on trade agreements how many do we talk about?

well you can talk about both bilateral and multilateral trade agreements.
bilateral trade agreements being between 2 countries is often used to divert the trade liberalisation from other countries whilst multilateral agreements are between more than and aims to promote free trade and globalisation between the countries.

 

[makakandchesse]

I believe CAD is caused by a worsening in a countries TOT=terms of trade which is exports/imports.
The effect of CAD will increasing a countries foreign debt hence making it more volatile to shocks. But thats my opinion.

Thank you!

 

[leesh95]

Anyone have gini for Australia?

 

[makakandchesse]

what are the GONSKI, NDIS mainly used to fund for, like is it mainly overcoming inequality...

 

[leesh95]

Hmmm many ways to answer this I'm guessing? The strengthening of protectionist policies, such as the increase in general tariff levels, may see a rise in the international competitiveness of firms in the very short term as they are able to compete to a larger extent with imported foods. As such, this may increase employment levels as the demand for labour increases. This will see the average level of income in the nation consequently decrease, assuming ceteris paribus, and as such decrease inequality in the short term. However, it also evident that protection levels increase inequality. The EU spent 33% (155 billion euros) of its income in 2011 on the common agricultural policy. This largely restricted devolving nations from trading with many European nations. Developing nations rely on agricultural production for income and as such the large protection on agricultural exports has seen inequality increase in some nations, making the strengthening of protectionist policies ineffective as a soloution to global inequality.

Someone mark it please

Would you just talk about food can't it be anything?

 

[johnny_boy12]

Anyone have gini for Australia?

for 2013 it's 0.303 i believe

 

[johnny_boy12]

what are the GONSKI, NDIS mainly used to fund for, like is it mainly overcoming inequality...

Gonski is funded to promote education which could be used to overcome structural unemployment. Whilst NDFS is used to reduce the income inequality in my opinion.

 

[leesh95]

I thought gonski was just a report?

 

[makakandchesse]

Gonski is funded to promote education which could be used to overcome structural unemployment. Whilst NDFS is used to reduce the income inequality in my opinion.

Thanks again

 

[johnny_boy12]

no worries, so how does protection affect individuals, firms and the government?

Well first if there is an increase in protection a consumer may have to barely the cost not receiving high quality products this is mainly due to the low levels of competition due to protection.
Firms are unable to produce products efficiently due to the fact they are protected and have nothing to lose due to the inefficiency which has been shown by the firm this will lead to a decrease in the international competitiveness of the firm.
Lastly the government is affect because they must use the revenue which they have gained from taxation to pay subsidies to fund for the protection hence leading to a loss of government revenue which ultimately decreases a countries international competitiveness and lead to budget deficits due to lack of inefficiency in my opinion

 

[johnny_boy12]

I thought gonski was just a report?

well it is a report which is used to promote education levels which could lead to decreasing the level of structural unemployment. Cause im sure gonski isn't used to counteract income inequality.

 

[Randox]

Would you just talk about food can't it be anything?

Looool that was meant to be imported goods. Autocorrect haha. I'm in my iPad

 

[ice555]

How would you tackle an essay on Trading Blocs?