Sunday, December 22, 2019

Essay about Inclusion in Practice - 730 Words

(M/601/4070) Promote equality, diversity and inclusion in work with children and young people 3.1 Explain what is meant by inclusion and inclusive practice 3.2 Identify barriers to children and young people’s participation Inclusive practice is a process of identifying, understanding and breaking down barriers to participation and belonging. Inclusion is about ensuring that children and young people, whatever their background or situation, are able to participate fully in all aspects of the life of the school. Inclusive practices will ensure that everyone feels valued and has a sense of belonging. Inclusion is not about viewing everyone as the same or providing the same work, but about providing the same opportunities and access to a†¦show more content†¦Disabled children and young people have the same right, as non-disabled children and young people to participate in decisions and issues that affect them. This is outlined in both the UN Convention on the Rights of Children (UNCRC) and in the UN Convention on the Rights of Persons with Disabilities (UNCRPD). Despite this, disabled children and young people continue to face significant barriers and challenges to participation. In order to effectively embed disabled children’s participation, it needs to be fully accessible and inclusive. The social model of disability provides a framework for inclusive participation; by focusing on changing attitudes and removing or minimizing barriers that prevent disabled children accessing the same opportunities as other children and young people. Barriers and challenges to disabled children and young people’s participation sit within three broad areas: training, support and resources; knowledge, understanding and attitudes; process, systems and structures. Identifying and recognizing the barriers and challenges provides a good basis for planning to further disabled children’s participation. Barriers to participation may include: * Physical barriers These may include lack of equipment or resources which the children may need to enable them to participate fully. Physical barriers could also be present within the school environment if it has not been fully adapted to meet the needs of all pupils. These adaptions areShow MoreRelatedSupport Inclusion And Inclusive Practices2271 Words   |  10 PagesBe able to support inclusion and inclusive practices in work with children and young people. Explain what is meant by inclusion and inclusive practices. Inclusion is simply to be â€Å"included†. Inclusion is used to ensure that people with disabilities and needs are not restricted from activities and tasks due to this. Inclusion is about valuing all individuals and giving them a fair chance to be included without discrimination, inclusion should also include children from disadvantaged groups, of allRead MoreInclusion, The Educational Practice Of Children With Disabilities1728 Words   |  7 PagesInclusion, the educational practice of instructing children with disabilities as well as children without disabilities in one classroom, is a very controversial topic regarding the education of students in today’s society. â€Å"Inclusion seeks to establish collaborative, supportive, and nurturing communities of learners that are based on giving all students the services and accommodations they need to learn, as well as respecting and learning from each other’s individual differences† (Salend 5). TheRead MoreUn derstand Inclusion and Inclusive Practices in Work1033 Words   |  5 PagesUnderstand inclusion and inclusive practices in work with children and young people. The UN Convention on the rights of the child article 28 says that Every child has the right to an education article 2 says The convention applies to every child whatever their ethnicity, gender, religion, abilities, whatever they think or say, no matter what type of family they come from. Schools have a duty to adhere to this legislation, they way that they do thisRead MoreInclusion Practices in Education Essay example4520 Words   |  19 PagesSpecial Education Inclusion What is OnWEAC? Welcome to OnWEAC, the Web site of the Wisconsin Education Association Council. WEAC represents 98,000 K-12 public school teachers and education support professionals, faculty and support staff in the Wisconsin Technical College System, education and information professionals employed by the state, retired members, and university students studying to become educators. OnWEAC provides services to members and non-members, including a databaseRead MoreInclusion Is The Educational Practice Of Educating Children With Disabilities819 Words   |  4 PagesInclusion is the educational practice of educating children with disabilities in the classroom with children without disabilities. In the past, people believed that children with disabilities were not capable of learning. This thought process hindered children with disabilities from being included in the general education population. After the ruling of Brown v Board of Education, families with children with disabilities began to fight for the rights of their children. Various families believed thatRead MoreAnswers 242 Equality Diversity And Inclusion In Dementia Care Practice699 Words   |  3 Pagesï » ¿Title: 242 Equality, diversity and inclusion in dementia care practice Level: 2 Credit Value: 3 GLH 24 1 Explain what is meant by: a) diversity b) equality c) inclusion Diversity means people of different sexes, ages that all have their own different experiences, attitudes, beliefs and preferences. Equality means treating everyone fairly and making equal opportunities available. Inclusion involves making the individual the centre of their life, involving them in everything that is about them soRead MoreUnit 313. Equality, Diversity and Inclusion in Dementia Care and Practice.3305 Words   |  14 Pages | | | | | | | |Unit 313. Equality, diversity and inclusion in dementia care and practice. | | | | | | | |Q1(1.1) Explain why itRead MoreNVQ 3 Equality Diversity And Inclusion In Dementia Care Practice Assignment1696 Words   |  7 PagesDEM 313 Equality, diversity and inclusion in dementia care practice 1.1 Explain why it is important to recognise and respect an individual’s heritage An individual’s heritage is about his culture, history or personal experiences it is important to recognise and respect them because it is what makes him individual and unique. If we know them we provide a person centre care and focus on individual’s choices and preferences, he will then feel valued and included. For example Muslim doesn’t eat porkRead MoreInclusive Education : An Dominant Ideology Underpinning Academic And Social Schooling Policies Essay1534 Words   |  7 PagesAct (1992), the Disability Standards for Education (2005), and the Melbourne Declaration on Educational Goals for Young Australians (2008). These obligations and legislative provisions have introduced systemic changes to embrace and strengthen the inclusion of all students, irrespective of ability or disability, into regular schooling as part of the challenge to improve outcomes, for all students (Hardy Woodcock, 2015), wherewith all students feel supported and valued, and barriers to access and participationRead MoreDiscrimination and Young People706 Words   |  3 PagesFinal draft Feb 2010 Title Promote equality, diversity and inclusion in work with children and young people 3 2 Assessment criteria The learner can: 1.1 Identify the current legislation and codes of practice relevant to the promotion of equality and valuing of diversity 1.2 Explain the importance of promoting the rights of all children and young people to participation and equality of access 1.3 Explain the importance and benefits of valuing and promoting cultural diversity in work with children

Saturday, December 14, 2019

Market Efficiency and Market Failure Free Essays

string(148) " from consumption of a good, and the demand curve that reflects the social benefits of this good would lie to the right of the market demand curve\." CHAPTER 4 Market Efficiency and Market Failure 1. Chapter Summary Governments of over 200 cities in the United States have placed ceilings on the maximum rent some landlords can charge for their apartments. Some firms have coaxed governments into imposing price floors, which are legally determined minimum prices that sellers may receive. We will write a custom essay sample on Market Efficiency and Market Failure or any similar topic only for you Order Now To understand the economic impact of government interventions in markets, it is necessary to understand consumer surplus and producer surplus. Consumer surplus is the dollar net benefit consumers receive from buying goods and services at market prices less than the maximum prices they would be willing to pay. In a demand and supply graph, consumer surplus equals the area below the demand curve and above a horizontal line drawn from the price axis to the point on the demand curve that represents the market price. Producer surplus is the dollar net benefit producers receive from selling goods and services at prices greater than the minimum prices they would be willing to accept. In a demand and supply graph, producer surplus is equal to the area above the supply curve and below a horizontal line drawn from the price axis to the point on the supply curve that represents the market price. In a competitive market, the equilibrium price for a good or service occurs at the quantity of product where the marginal cost of the last unit produced and sold is equal to the marginal benefit consumers receive from the last unit bought. Therefore, equilibrium in a competitive market results in an economically efficient level of output. At this same level of output economic surplus, the sum of consumer and producer surplus in this market is maximized. Some producers who believe an equilibrium price is too low will lobby for government action to set a higher legal price (a â€Å"floor price†). Some consumers who believe that an equilibrium price is too high will lobby government to legally require that a lower price (a â€Å"ceiling price†) be charged. Although price ceilings and price floors are not common, they have been established in some markets. Price floors were established in gricultural markets in the United States during the Great Depression. Government intervention in agriculture has continued ever since. Although the administration of price floors can be complex, the basic operation of this price control involves a government commitment to maintain a price (for example, $3. 50 per bushel of wheat) that exceeds the equilibrium price (for example, $3. 00). The price floor reduces the quantity demanded of the product while it encourages producers to increase the quantity supplied. The difference between these two quantities, a surplus, is typically bought by government at the floor price. The result of the price floor is to (a) transfer some consumer surplus that would exist at the equilibrium price to producer surplus and (b) create a â€Å"deadweight loss† or a net loss of consumer and producer surplus. The deadweight loss is also the efficiency loss that results from the price floor. Another example of a price floor is the â€Å"minimum wage,† which is a legal wage imposed above the equilibrium wage offered in the United States for most occupations. Since most workers earn wages above the minimum wage, this price (wage) floor affects low-skilled and inexperienced workers. Although the economic impact of the minimum wage is similar to that of price floors imposed in other markets (deadweight losses result), economists have disagreed about the extent to which the minimum wage reduces employment. Price ceilings are found most often in the markets for apartments in various cities; local governments will usually impose this type of price ceiling. In New York City, about 1 million apartments are subject to rent control. A simple description of the impact of a price ceiling on rent (administration of the ceiling will vary by city and over time) is that the quantity demanded at the ceiling price, for example, $1,000 per month, exceeds the quantity supplied. In contrast, if an equilibrium price of, say $1,500, were allowed, the quantity supplied would be greater and the quantity demanded would be less; these two quantities would be equal and there would be no shortage of apartments. The results of the price ceiling are to (a) transfer some producer surplus to consumer surplus and (b) create a deadweight loss or a net loss of consumer and producer surplus. Another possible result of the ceiling is the creation of a â€Å"black market† where buyers agree to rent apartments from landlords for greater than the legal price. Because the ceiling reduces quantity supplied, the black market price may exceed the equilibrium price. An externality is a benefit or cost that affects someone not directly involved in the production or consumption of a good or service. Negative externalities are costs imposed on non-consenting individuals. Positive externalities are benefits for individuals not directly involved in producing or paying for a good or service. Externalities interfere with the economic efficiency of a market equilibrium since they cause a difference between the private cost of production (the cost borne by the producer of a good or service) and the social cost, or the private benefit from consumption (the benefit received by the consumer of a good or service) and the social benefit. The social cost is the private cost plus any external cost resulting from production; the social benefit is the private benefit plus any external benefit that results from the consumption of a good or service. When there is a negative externality as the result of production, the market supply curve understates the true (social) cost of production. A supply curve that reflects social costs would lie to the left of the market supply curve. The equilibrium market price occurs where the marginal social cost of production exceeds the marginal benefit to consumers and there is a reduction in economic surplus. Economic efficiency would be increased if less of the good or service were produced. When there is a positive externality, the market demand curve understates the social benefits from consumption of a good, and the demand curve that reflects the social benefits of this good would lie to the right of the market demand curve. You read "Market Efficiency and Market Failure" in category "Papers" At the equilibrium point, the marginal benefit exceeds the marginal cost and a deadweight loss results. Because of the positive externality, too little of the good is produced. Negative and positive externalities lead to market failure due to the absence of private property rights for physical property (for example, a store or factory) or intangible assets (for example, for a new idea to improve a production process). Market failure may also result from the difficulty of enforcing private property rights (for example, lax government enforcement of copyright laws). Most of the time, the governments of the United States and other high income nations provide adequate enforcement of property rights, but in certain situations, these rights do not exist or cannot be legally enforced. When private solutions to externalities are not feasible, government intervention is justified. For example, by imposing a tax equal to the external costs that result from production of a good, government can â€Å"internalize† the externality. This causes the social, not just the private, cost of production to be borne by producers. In effect, the supply curve for the good shifts to the left. This supply curve would then cross the demand curve at a higher equilibrium price and lower equilibrium quantity. When production of a good produces a positive externality, government can internalize the externality by providing a subsidy to consumers. If the subsidy is equal to the value of the externality, this has the effect of shifting the demand curve for the good to the right; market equilibrium is achieved at the economically efficient level with a higher price and quantity. To reduce pollution, governments have often used a â€Å"command and control† approach. This may involve government imposition of quantitative limits on amounts of pollution firms can emit or the installation of specific pollution control devices. An exception to the command and control approach was the U. S. overnment’s attempt to reduce acid rain pollution. In the Clean Air Act passed by Congress in 1990, a reduction in sulfur dioxide emissions, a major cause of acid rain, from electric utilities was mandated. To achieve this goal, utilities were allowed to buy and sell emissions allowances. Each allowance is equal to one ton of sulfur dioxide. So long as the total amount of emissions does not exceed an annual mandated maximum amount (by 2010 this amount will be 8. 5 million tons), firms can emit sulfur dioxide in amounts equal to their allowances. Firms that face high costs of reducing sulfur dioxide have an incentive to buy more allowances than they have been allocated. Utilities that can reduce their emissions at low cost have an incentive to do so and sell some of their allowances. This program has achieved emissions reductions at much lower costs than had been expected in 1990. The success of the sulfur dioxide program has led some to suggest that a similar program be used by the United States and other nations to reduce emissions of so-called â€Å"greenhouse gases† that contribute to global warming. . Learning Objectives Students should be able to: †¢Understand the concepts of consumer surplus and producer surplus. †¢Understand the concept of economic efficiency, and use a graph to illustrate how economic efficiency is reduced when a market is not in competitive equilibrium. †¢Use demand and supply graphs to analyze the economic impact of price ceilings and floors. †¢Identify examples of positi ve and negative externalities and use graphs to show how externalities affect economic efficiency. Analyze government policies to achieve economic efficiency in a market with an externality. 3. Chapter Outline Should the Government Control Apartment Rents? 1. Rent control is an example of government regulation of prices. Rent controls (a type of price ceiling) exist in about 200 cities in the United States. Although the rules that govern rent control are complex and vary by city, rent control drives up the demand and price for apartments not subject to the controls. Consumer Surplus and Producer Surplus 1. Consumer surplus is the difference between the highest price a consumer is willing and able to pay and the price the consumer actually pays. 2. Producer surplus is the difference between the lowest price a firm would have been willing and able to accept and the price it actually receives. A. Consumer and producer surplus represent the net benefits consumers and producers receive from buying and selling a good or service in a market. B. Price ceilings and price floors reduce the economic surplus (this is consumer surplus plus producer surplus in a given market). C. Marginal benefit is the benefit to a consumer from consuming one more unit of a good or service. D. The height of a market demand curve at a given quantity measures the marginal benefit to someone from consuming that quantity. Consumer surplus refers to the difference between this marginal benefit and the market price the consumer pays. E. Total consumer surplus is the difference between marginal benefit and price for all quantities bought by consumers; this is shown in a demand curve as the area below the demand curve and above the market price. F. Marginal cost is the additional cost to a firm of producing one more unit of a good or service. G. The height of a market supply curve at a given quantity measures the marginal cost of the last unit produced for the producer. Producer surplus refers to the difference between this marginal cost and the market price the producer receives. H. Total producer surplus equals the difference between marginal cost and price for all quantities sold by producers. The Efficiency of Competitive Markets 1. When equilibrium is reached in a competitive market, the marginal benefit from the last unit sold will equal the marginal cost of producing that last unit. This is an economically efficient outcome. A. If less than the equilibrium output were produced, the marginal benefit of the last unit bought would exceed its marginal cost. B. If more than equilibrium quantity were produced, the marginal benefit of this last unit would be less than its marginal (opportunity) cost. C. Economic surplus is the sum of consumer and producer surplus. Economic surplus, or the net benefit to society from the production of a good or service, is maximized at equilibrium in a competitive market (when there are no externalities). D. A deadweight loss is the reduction in economic surplus resulting from a market not being in competitive equilibrium. E. Economic efficiency is a market outcome in which the marginal benefit to consumers of the last unit produced is equal to its marginal cost of production, and where the sum of consumer and producer surplus is at a maximum. Government Intervention in the Market: Price Floors and Price Ceilings 1. Though the total benefit to society is maximized at a competitive market equilibrium, individual consumers would be better off if they could pay a lower than equilibrium price, and individual producers would be better off if they could sell at a higher than equilibrium price. 2. Consumers and producers sometimes lobby government to legally require a market price different from the equilibrium price. These lobbying efforts are sometimes successful. 3. Price floors were established in agricultural markets during the Great Depression in response to pleas from farmers who could sell their product only at low prices. A. A price floor is a legally determined minimum price that sellers may receive. B. A price floor encourages producers to produce more output than consumers want to buy at the floor price. C. The surplus (equal to the quantity supplied minus the quantity demanded at the floor price) that results from a price floor is typically bought and stored by the government. D. The marginal cost of the last unit produced exceeds its marginal benefit and there is a deadweight loss which reflects a decline in efficiency due to the price floor. 4. A price ceiling is a legally determined maximum price that sellers may charge. A. Price ceilings are meant to help consumers who may lobby for a price ceiling after a sharp increase in the price of an item on which they spend a significant amount of their budgets (for example, rent and energy). B. At the ceiling price, the quantity demanded is greater than the quantity supplied so that the marginal benefit of the last item sold (the quantity supplied) exceeds the marginal cost of producing it. C. Price ceilings result in a deadweight loss and a reduction of economic efficiency. D. Price ceilings create incentives for black markets. A black market refers to buying and selling at prices that violate government price regulations. Externalities and Efficiency 1. An externality is a benefit or cost that affects someone who is not directly involved in the production or consumption of a good or service. A. Positive externalities refer to benefits received from a good or service by consumers who do not pay for them. B. Negative externalities refer to costs incurred by individuals from a good or service for which no one pays. C. A private cost is a cost borne by the producer of a good or service. D. A social cost is the total cost of production, including both the private cost and any external cost. E. A private benefit is the benefit received by the consumer of a good or service. F. A social benefit is the total benefit from consuming a good, including both the private benefit and any external benefit. G. A negative externality causes the social cost of production for a good or service to be greater than the private cost. As a result, more han the economically efficient level of output is produced. H. A positive externality causes the social benefit from the production of a good or service to be greater than the private benefit. As a result, less than the economically efficient level of output is produced. A. Market failure refers to situations where the market fails to produce the efficient level of output. B. Figure 4-9 illustrates the effect of acid rain on the market for electricity and the deadweigh t loss that occurs due to a negative externality. C. Figure 4-10 illustrates the impact of a positive externality in the market for a college education and the deadweight loss caused by this externality. 3. In the absence of private solutions to externalities, government intervention is warranted. To achieve economic efficiency, governments may intervene in different ways. A. To reduce pollution, â€Å"command and control† policies have often been employed. A command and control approach refers to government-imposed quantitative limits on the amount of pollution firms are allowed to generate, or government-required installation by firms of specific pollution control devices. B. Since 1990, a market-based approach to reducing sulfur dioxide emissions from electric utilities has reduced emissions at much lower cost than was expected. The success of this approach has led economists to advocate more extensive use of market-based approaches, and less use of command and control policies, to reduce other forms of pollution. Homework Problems – Not to be submitted: 1. From the Review Questions: Try all of them! 2. From the Problems and Applications: #s: 3, 4, 5, 16, and 20. 3. From the APPENDIX: REVIEW QUESTIONS #S 3 AND 4. How to cite Market Efficiency and Market Failure, Papers

Friday, December 6, 2019

Determinants Factors Influencing Australian â€Myassignmenthelp.Com

Question: Discuss About The Determinants Factors Influencing Australian? Answer: Introduction Trade is an important activity for all economies whether developed or underdeveloped. According to OBrien (2015), trade has been and remains to be an important economic activity to the Australian economy; it has experienced a strong growth in the recent years. Most economies fail to have sufficient resources to produce all the goods required to meet the populations demand. This creates a need to source for goods from other countries that have surpluses. However, this does not mean that the resources are insufficient in all the economies; some economies have more resources to produce certain types of good and less for the production of others. This introduces the concept of specialization which will be important theory to explain the importance of international trade. We shall see that this is where a country produces goods that is more efficient in producing and trades them for those that its inefficient in producing. The paper shall show some of the goods the Australian economy is s ufficient in producing and those that it sources from other economies. Specialization also introduces the concept of importation and exportation; this is the exchange of goods between countries and earns the trading country a foreign exchange. It is more profitable for a country to export more than it imports because exportation is a source of income while importation is an expenditure. The difference between the exportation and importation of goods introduces the concept of balance of payment. An economy with increasing balance of payment is considered to be more efficient in production. Most of the world economies are running at a balance of payment deficit (they are importing more than their exportation of output). The exchange rate determines the attractiveness of either imports or exports. Since exchange rate is an important factor in international trading, this paper shall also determine the factors influencing the exchange rate. International trading has both positive and negative impacts, this has created a need for regulation. The paper shall analyze the various trade restrictions that the government imposes on international trading and the reasons for the same. The importance of international trade has resulted in economies adjusting their terms of trade (Gans et al, 2015); Australian terms of trade has improved over the years. The Reason for Economies Engaging in Trade According to Ortiz-Ospina Roser (2017), the desirability of free international trade is raised by the fact that it allows for specialization. By this, economies benefit because they only produce goods that are more efficient for them to produce and import the others. This is the origination of comparative advantage where the gains from trade are supported; this is the exchange that allows countries to produce what they produce best and import what they dont (Mankiw, 2015). There is some empirical evidence that trade does not lead to improvement in aggregate economic growth; it creates both winners and losers among the countries; so trade liberalizations have distributional consequences that has to be considered. The development of trade can be attributed to the advancement in technology and the globalization of world economies. Importation and Exportation China has been the largest source of Australian merchandize importation (Dfat.gov.au, 2014). Since the mid-2000s there has been a significant increase in the import of merchandize from China. This merchandize include computers and telecommunications equipment and Clothing. The following are the top five imports for the Australian economy; personal travel services, crude petroleum, refined petroleum, passenger motor vehicles and freight services. The major items of Australian exportation as at 2013 is the; iron ores concentrates, coal, natural gas, education related travels and personal travel services. Minerals and fuels constitutes of the greatest proportion of the Australian exportation sector. This economys export of natural gas has growth significantly; Australia is considered one of the largest exporter of liquefied natural gas. Determinants of Exchange Rate Other than inflation and interest rate, the other importance economic factor that determines the countrys economic health level is the exchange rate. The level of trade in an economy is mainly determined by the exchange rate; it is important to the whole world of free market economy. Owing to this reason, the exchange rate is often put into consideration such that it is most watched, analyzed and manipulated by the government as an economic measure. Exchange rate does not only matter on a large scale, but also on a small scale; the investors real return from portfolios is impacted by the exchange rate. The trading relationship between two nations is affected by the exchange rate in the following ways. One is that in the foreign market, exports are made more expensive and imports cheaper by a rise in the countrys currency. On the contrary in the same market, exports are made cheaper and imports expensive when the countrys currency falls. The countrys balance of payment is increased by the lower exchange rate but is lowered by the high exchange rate. Spivak (2017) noted that there has been some rise in the value of the Australian Dollar; this will impact the Australian economy in that imports will be made cheaper and exports expensive. The balance of trade will improve. The exchange rate is determined by numerous factors; all the factors are related to two trading countries relationship. The exchange rates are expressed as a relative comparison of two currencies that are involved in trade. The following are the major factors that influence the movements of the exchange rate. Differentials in inflation For a country that has been consistently been experiencing a low inflation rate, its purchasing power rises; this rise causes an increase in the currencys value relative to that of other countries. Countries like Germany, Japan and Switzerland has been having a low inflation rate on the last half of the twentieth century. Canada and the U.S. are some of the economies that later achieved the low inflation. Higher inflation has caused a depreciation of these economies currency in relation to their trading partner countries. High interest rate also accompanies this depreciation of currency. Differentials in interest rate - There is a high correlation between exchange rate, inflation and the interest rate. The manipulation of the interest rate by the central bank influences both the exchange rate and the inflation rate; inflation and the values of currency is impacted by the changing interest rates. Lenders in an economy experiencing higher interest rates enjoy greater returns relative to those in countries with lower interest rate. Thus, foreign capital is attracted by higher interest rate and the exchange rate is forced to rise. However, the intensity of the impact of interest rate on the exchange rate is dependent on the economys inflation rate. If an economy is experiencing a relative high interest rate, and at the same time have a relatively higher inflation rate, the impact is mitigated. This is also the case when there is an additional factor that could drive down the currency. Similarly, a lower interest rate forces the exchange rate to decrease. The inflation ra te also helps in mitigating the impact of low interest rate. It has already been noted that a lower inflation rate raises the value of the currency; thus, if an economy is experiencing a relative lower interest rate, and at the same time having a relatively lower inflation rate, the impact is mitigated. Current account deficit This is the balance of trade recorded by a country from trading with its trading partners. It reflects all the payments that were made between countries; the payment include; goods, services, dividends and interest. A deficit is the contrary of surplus where exports exceeds imports. A current account deficit is a representation of an increased countrys spending on foreign trade relative to what the country is earning from international trade (a deficit occurs when a country imports more than it exports and this is not good for the health of the economy. In order to make up for the deficit, the country borrows more capital from the foreign sources. This means that a current account deficit makes a country to require more currency from the foreign sources that what is received when it sells its exports. Other than receiving less from exporting, the economy supplies more currency to the foreign market to obtain products; this is more than the foreigners demand. According to Bergen (2017), the countrys exchange rate is lowered by the increased demand for the foreign currency; this happens until the domestic goods and services become cheaper for the foreigners, and the foreign assets become too expensive for the generation of sales for domestic interests. The Australian economy has been operating at a deficit for most of the years for the past 50 years. This has been attributed by the importation of goods and services exceeding the exportation of commodities and services. As at 2015, the exportation level was way lower than the importation level. The impact of this on the Australian economy is a reduction in the exchange rate. Public debt Large-scale deficit financing lifts the level of public debt. Countries use these financing for government funding and paying for the public sector projects. This is one of the ways in which domestic economy is stimulated. However, foreign investors are less attracted to nations with huge debts and public deficits. This is because large debts are believed to cause inflation; when the inflation rate rises, the servicing of the debt will involve future repayment with cheap real dollars. The scenario may be worse if the government makes a decision to repay a large debt by printing more money; this would raise the economys money supply and the inflation rate will rise. Further, the government may be forced to raise the securities supply to be sold to the foreigners if it is unable to use the domestic means to service its deficit (the domestic means may include increasing of the money supply or the selling of government bonds). If the securities supply is raise, the security price falls. Lastly, if foreign investors believe that a country is at a risk of defaulting on its obligations on a large debt, they become more worrisome. The willingness of foreign investors to own securities dominated by such a countrys currency falls since there is high risk of default. Based on this argument, the countrys debt rating is an important determinant of the exchange rate for its trade. Terms of Trade It is related to the balance of payment and the current accounts; it is a ratio used in the comparison of export to import prices. If a countrys exports price exceed that of its imports, it can be said to have an improved terms of trade. Terms of trade are considered to be lower when a countrys import price exceeds that of its exports. An increased demand for a countrys exports is an indicator of improved terms of trade. If the demand for exports fall, this is an indicator of decreased terms of trade. Increased terms of trade results in an increased revenue from exports and the countrys currency rise in demand (the currencys value increase). If the exports price rises by a rate smaller than the rise in imports price, there will be a fall in the currencys value relative to all its trading partners. The Australian terms of trade were lower in the 1980s and 90s. However, the graph above shows that there is an increased terms of trade in the 20th century. The trend for the Australian terms if trade is thus sloping upwards. The highest level of terms of trade was recorded in 2011. Political Stability and Economic Performance Economic performance is a major factor considered by foreign investors when they are making decisions on where to invest their capital; they always find strong economic performance to be more attractive; these economies are considered to be more stable. Investors always avoid investing on economies perceived to be persistent in economic and political risks. A country with positive attributes (less or no political and economic risks) draw the attention of foreign investors. For instance, a political turmoil may result in confidence on a currency being lost consequently resulting in the movement of capital to countries that are more stable. Trade Restrictions The Australian government imposes trade restrictions on imports as a strategy to protect the domestic producers. Since the Australian economy is being faced by a rising unemployment problem the government impose the restrictions on importation so that the domestic producers may be able to get enough market for their produce and at a higher price that would enable them to expand and create more jobs. The trade restrictions are in such a way that a quota is imposed on imports. This makes imports more expensive and thus results in less demand for imports. This action does not benefit either of the two trading countries. This is because the domestic consumers lose in that there is a reduced supply and thus they are forced to buy the goods at a higher price. The exporting country losses a market share and thus loses a significant amount of foreign exchange. Pattern of trade of China with Australia The relationship between Australia and China started long time ago. The immigration from China to Australia started in the 19th century. Later, Australia started offering pay education to the Chinese and this has increased the flow of Chinese to Australia (Inglis, 2012). China has signed several trade agreements with China in an attempt to boost trade between the two economies. The initial biggest trading partners before the integration with China were Northern America and Europe. The integration shifted the market to Asia-pacific countries. Integration of China with Australia in terms of trade The integration of Australian with China has greatly improved (more). This is because the connection between the two countries has been raised. Ceipps (2017) noted that there was a proposal by China to include the development plant in northern Australia in its ambitious one belt, One Road Initiative. This will facilitate cross-border trade. The Asia-Pacific countries receives many goods and services from Northern Australia; these also includes mineral and agricultural products. This has already developed a trade gateway for the whole of Australia. The potential inclusion of northern Australia in the Chinas One Belt, One Road is a wider economic integration with the Asia-pacific that has been enabled by the free trade agreements, and also the China-Australia free trade agreement (Ceipps, 2017). Australian terms of trade and composition in China There has been an evolvement in the composition and direction of Australian trade over the past 40 years. This has been as a result of a shift in both the global economic climate and the Australian economy. In the 1960s, North America and Europe were the major markets for both the Australian imports and exports. However, due to increased terms of trade with the Asian countries, the sourcing has geographically shifted to Asia. The proportion that Asia contributes to the Australian imports and exports (two-way trade of goods and services) is over 60% (Dfat.gov.au, 2014). China is one of the largest economy in China and a great trader partner with Australia. The 200 Changes of terms of Trade between Australia and China There significant improvement in the terms of trade between Australia and China as has provided in the analysis above. In 2005-06 China became the largest source of Australian imports; this was after a growth of 51% from 2003-04; the trade deficit was 8% (Abs.gov.au, 2007). In 2006-07, the demand for Australian minerals by China was so strong; the export for these minerals more than doubled the 2003-04 record. This caused the Australian mineral industry to be in a boom and the trade deficit was 4%. China was then considered to be the second largest Australian export market after Japan. Impacts of the increased terms of trade on Australian economy The growth of the Australian economy has accelerated in the recent few years owing to the increased integration with China. China has rose to be a prosperous economy and has raised its demand for Australian goods and services. The Australian economy has been noted to grow by 23% within the past decade due to the improvement in trade with China. There was a cut in the Chinas trading tariff which saw a doubling of the Australian export in the first 3 quarters of 2016. The signing of the free trade agreement between Australia and China according to Garnaut (2017), is expected to remove trading tariffs and much benefits are expected to flow to Australia. Conclusion International trade is an important driver of growth in the Australian economy. Trade in Australia has a big contribution to its gross domestic product. In the recent years, growth of trade in Australia has improved. There has been an increased terms of trade between Australia and the Asian economies which has contributed to much of its two way trade shifting from North America and Europe to Asia. China is the largest Australian trade partner. The prosperity of China has led to an accelerated growth in the Australian economy. The two countries are expected to continue improving in terms of their trade owing to the proposal laid out by the Chinese economy on its intended integration with Northern Australia. The real return from a portfolio is determined by the currencys exchange rate in which that portfolios bulk of investment are held. The purchasing power of income is decreased by a declining exchange rate; the capital gains from any returns are also reduced. The exchange rate has been deducted to influence the income factors like inflation, interest rate, and capital gains derived from domestic securities. There are numerous complex factors determining the exchange rate. Investors should have an understanding of how their investments rate of return is influenced by exchange rates and the currency values. References Abs.gov.au. (2007). 5368.0 - International Trade in Goods and Services, Australia, Oct 2007. Abs.gov.au. 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