The index of the import and export prices is a measurement of the change in the rate of the goods and services that are potentially imported and exported by a country. The indices are a description of the fluctuations in the welfare of the economy of the country that has a dependence on the changes that are experienced by the countries. The changes in the prices create a major impact on the important and key variables of macro economy that include the consumption, investments and savings (Anderson 2016). On the other hand, the modifications in the trade terms will have a result in the implications being distributional in nature in the country.
The report has carried on the study of the indices of the import and export structure in Australia. The report will take into consideration the evaluation of the trends over a period of years. Furthermore, the trade terms of the data will have an analysis of the instability in the exports along with the import over the previous decade.
Australia had been experiencing the fluctuations in the trend of the export products and the manufacturers of import. The variations in the trends may result in the failure in the future expectations of the country. The declining demand related to the raw materials is the most general theory adopted towards the evaluation of the ongoing development in the economical conditions. Secondly, there is enlightenment in the power of the market by the goods that lead to the enhancement in the production with the fall in the price (Bishop et al. 2013).
The economy of Australia has been growing from 54.7 in the year 2000 to 80.7 in the year 2015. Even though, there were many fluctuations caused in the economy that resulted in the decline due to the periods of recession and went down to 73.8 in the year 2007, there was a rise in the indices to 92.3 in the year 2008. There was a rise in the export between the period of the years i.e. 2009 to 2012 and thereon declined since 2012.
The fluctuation in the trend of the export indices is as below:
Similar to the indices of exports, the indices of the import prices had also faced a fluctuation of the trends but, the import indices faced a higher amount of fluctuations. The export indices had risen in the early years i.e. 2000 but the decline started and continued until the year 2007. Furthermore, the indices had faced an overshoot during the years 2008 to 2009, which was due to the period of global recession faced by the countries in which there was an import from the other foreign countries (Cressie 2015). The indices faced a stable structure between the years of 2010 to 2011 after reviving from the recessionary period but, after 2012 there was an upward trend in the prices.
The import price indices are represented below:
There was a declining trend in the trade terms of the country theta had started since the year 2012 after the increasing trend faced from the years 2000 to 2011. The prime reason may be the shift in the direction of trades from the countries of UK and China as there are ties in the previous years (Gillitzer and Kearns 2010).
The graph below illustrates the fluctuation in the terms of the trade:
A short term influence and impact was created in the trade of Australia after the period of Global recession. Thus, there was a major impact on the resources as there was a heavy decline in the prices of commodity in year 2008. On the other hand, the terms of volumes had shown an increasing trend through the exports done. The opportunity of building up the commodity prices of the stocks had lowered down. On the other hand, all the other sectors except the service sector among the major sectors of economy had been recovered from the financial crisis that occurred globally. The service sectors in America and Europe along with the educational services in Asia had faced a slow recovery from the global recession (Gorajek and Rees 2015).
The global crisis had influenced the currency i.e. the dollar against the US Dollar and thus it declined along with the increased price of imports. Accordingly, there was a decline in the demand for the goods and the services.
The imports had a composition that was about 50% of the total capital and intermediary goods. Due to the lowering of the tariffs in the economic conditions in the years between 2013 and 2014, there was an increase in the accounting for the 25% of the total imports. However, import prices had faced a decline as per the results of the June 2014 as there was a sourcing of the goods consumption (Lomax and Hahs-Vaughn 2013). The important goods that are included in the top 5 list have been divided as per the shares and they include the following:
Over the past ten years, the rate of exports had been doubled and the successful period was faced until 2011 that was due to the increase in the average rate of the minerals and other fuels at about 16.3 per cent per annum. There was a fluctuation in the exports that was faced along the years of 1990 to 2000 and from the years 2013 and 2013, the exports were increased and driven by the materials like coals and iron ores. The shares of the iron ores and coals had improved to a total of 34.7% from 11.1% in current times along with the years over the past decade (Morantz 2013). Therefore, the country had been the largest exporter of the coal and iron ore. On the other hand, the educational services, natural gases and personal travels formed the top five level goods and had share of 4.8%, 4.9% and 4.2% respectively of the total shares in exports. Even though, there has been as shift in the economy in the Australia, the same is turning towards becoming an educational hub for the increased intake of 410,000 students and approx 6 million foreigners.
The exports of Australia for the minerals sectors has been the highest and thus had a higher share in the economy i.e. 50.1% that was followed by the service sector, rural areas and manufacturers with the shares of 17.4%, 12% and 12.7%. There was an increase in the service sector by 5.8% all the way through September 2015 (Pigou 2013).
The creation of the country has been gainful in nature that did not have much effect on the volumes of the export that resulted in the declining prices. Few reports had come that had a relation with the closing down of the previous years and had low and smaller mines of productivity. The same had a major reference with the coal sector and if the costs stay at the level at present and for much longer periods of time that have a declining in future time.
The volumes of the imports had risen with the increase in the prices of commodities and with the capital goods of mining due to the increase in the exchange rates of Australia (Tan et al. 2013). The prices of commodities had been declined with the decrease in the imports made towards the capital services and products in the years between 2014 and 2015.
Conclusion:
From the above discussions, it can be concluded that the indices of the imports and exports had been experiencing huge variations over the previous years in a decade. There had a decrease in the indices of exports due to the demands that had declined for the coal or the iron ores. However, the indices of import have increased due to the expansion in the service sectors and after getting recovered from the global crisis.
2 a)
0, 1, 1, 3, 0, 0, 2, 5, 0, 1, 1, 2, 0, 1, 1
After putting in the Ascending order, – 0, 0, 0, 0, 0, 1, 1, 1, 1, 1, 1, 2, 2, 3, 5
Mean = 18/ 15 = 1.2
Median = 1 (middle vale of the series)
Mode = 1 (the maximum number of observation repeated in the sample)
b) i.)
From the sample of 9 students, time taken for the exam
33, 29, 45, 60, 42, 19, 52, 38, 36
After putting in the Ascending order– 19, 29, 33, 36, 38, 42, 45, 52, 60
Mean = 354/9 = 39.33
Median = 38 (the middle most part)
Mode = N.A.
ii.)
The computation above shows that the mean is higher than the median and there is no mode as all the students submitted their paper at the median time. The exam was considered to be uncomplicated as the students tried to complete it in 39.3 minutes in average.
References
Anderson, D. 2016. Fifty years of Australia’s trade. dfat.gov.au. Available at: https://dfat.gov.au/about-us/publications/Documents/fifty-years-of-Australias-trade.pdf [Accessed 13 May 2016].
Andrew, J. 2012. Australia’s trade performance 1990-91 to 2010-11. dfat.gov.au. Available at: https://dfat.gov.au/about-us/publications/Documents/australias-trade-performance-1990-91-2010-11.pdf [Accessed 13 May 2016].
Australian Government. 2016. Australian Industry Report 2015. Available at: https://www.industry.gov.au/Office-of-the-Chief-Economist/Publications/Documents/AIR2015.pdf [Accessed 13 May 2016].
Bishop, J., Kent, C., Plumb, M. and Rayner, V., 2013. The Resources Boom and the Australian Economy: A Sectoral Analysis’. RBA Bulletin, pp.39-50.
Cressie, N., 2015. Statistics for spatial data. John Wiley & Sons.
Gillitzer, C. and Kearns, J. 2010. Long-Term Patterns in Australia’s Terms of Trade. rba.gov.au. Available at: https://www.rba.gov.au/publications/rdp/2005/pdf/rdp2005-01.pdf [Accessed 13 May 2016].
Gorajek, A. and Rees, D. 2015. Lower Bulk Commodity Prices and Their Effect on Economic Activity. rba.gov.au. Available at: https://www.rba.gov.au/publications/bulletin/2015/sep/pdf/bu-0915-4.pdf [Accessed 13 May 2016].
Lomax, R.G. and Hahs-Vaughn, D.L., 2013. An introduction to statistical concepts. Routledge.
Morantz, A.D., 2013. Coal Mine Safety: Do Unions Make a Difference?.Industrial & Labor Relations Review, 66(1), pp.88-116.
Pigou, A.C., 2013. The economics of welfare. Palgrave Macmillan.
Tan, H., Sun, A. and Lau, H., 2013. CO 2 embodiment in China–Australia trade: The drivers and implications. Energy Policy, 61, pp.1212-1220.
Thompson, G., Murray, T. and Jomini, P., 2012. Trade, Employment and Structural Change: The Australian Experience (No. 137). OECD Publishing.
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