Essays on Australia's Economic Growth Dependence on Asia's Demand for Its Resources Case Study

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The paper “ Australia’ s Economic Growth Dependence on Asia’ s Demand for Its Resources” is a fascinating example of the case study on macro & microeconomics. The rapid industrialization and urbanization that has taken place in Asia’ s economies are in great demand for natural resources from Australia and also education and tourism services. Australia has played a great role in the ‘ Asian Century’ which is being faced by various threats ahead especially on the sustainability of the growth path so far acquired. The growth of the Australian economy has on the other hand over-relied on demand for its resources by the Asian countries (Liew, 2010).

With the looming threats, it is important for Australia to take into account these threats as it decides on whether to increase its dependence on Asia even in the coming century. Many analysts have however questioned the decision of anchoring the prosperity of Australia to demand its resources by Asia. This paper looks at what analysts have said concerning Australia’ s economic growth depends on Asia’ s demand for its resources and how Australia’ s economy can respond to changes in Asian demand.

The paper also looks at some companies that are contributing to the Australian economy by exporting resources. According to a White Paper written by the Australian Department of the Prime Minister and Cabinet, Australia has played a very important role in the transformation of Asia. There has been a sharp shift in Australia’ s pattern of trade with the most important trading partners being China, Japan, Indian, and the ASEAN neighbors. China alone takes a quarter of Australia’ s merchandise exports and takes back a fifth of Australia’ s merchandise imports. According to the White Paper, this demand is highly evident in natural resources, agriculture, and tourism.

Australians have however benefitted from industrialization in Asia through reduced prices for manufactured goods and some services. The rise in income growth in Asia has also enabled may Asians especially from China and India to relocate to Australia for leisure activities, studies, and business activities.

References

Australia Department of the Prime Minister and Cabinet, 2012, Australia in the Asian Century, Commonwealth of Australia.

Rio Tinto, 2010, Rio Tinto approves further US$3.1 billion for expansion of Pilbara iron ore capacity to 283 million tonnes per annum. Retrieved on 16th January 16, 2013 from http://www.riotinto.com/media/18435_media_releases_19683.asp

Liew, L. (2010). As Asia’s Quarry: Implications for Australia. Queensland: Griffith University.

Lowe, P., 2010, The Development of Asia: Risk and Returns for Australia, Retrieved on 17th January 2012 from http://www.rba.gov.au/speeches/2010/sp-ag-160910.html

Hunt, B., 2010, Emerging Asia’s Impact on Australian Growth: Some Insights from GEM, Geneva: International Monetary Fund.

IMF, 2012, Strong Commodity Demand, Sound Policies Support Australia, Retrieved on 15th January 2012 from http://www.imf.org/external/pubs/ft/survey/so/2012/car111512a.htm

Plumb, M., Kent, C & Bishop, J., 2012, Implications for the Australian Economy of Strong Growth in Asia, Sydney, NSW, Reserve Bank of Australia.

BHP Billiton, 2012, Project Justification, Retrieved on 15th January 2012 from http://www.bhpbilliton.com/home/aboutus/regulatory/Documents/Olympic%20Dam%20Supplementary%20EIS/Documents/Chapter%203%20Project%20Justification.pdf

Rio Tinto, 2013, Rio Tinto Iron Ore: Expansion Projects, Retrieved on 16th January 2012 from http://www.riotintoironore.com/ENG/operations/301_expansion_projects.asp

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