Share Market Collapse - Australian and Chinese Economic Activity - Case Study Example

Add to wishlist

Cite this document

Summary

Download full paper File format: .doc, available for editing

GRAB THE BEST PAPER98.6% of users find it useful

Share Market Collapse - Australian and Chinese Economic Activity

Read Text

Subject: Macro & Microeconomics
Type: Case Study
Level: Masters
Pages: 3 (750 words)
Downloads: 0

Extract of sample "Share Market Collapse - Australian and Chinese Economic Activity"

Generally, the paper "Share Market Collapse - Australian and Chinese Economic Activity " is a good example of a micro and macroeconomic case study. Indexes are created to keep track of the performance of certain stocks over a period of time-based on the indicators one is interested in (Fortune, 1998). Share price indexes are constructed by comparing the share performance of one stock market during a particular period against the performance of the same market in other periods. Below are the comparisons of the share price patterns of Australia against major stock markets of the world as well as the annual percentage changes in the share prices for each quarter.

(i) Australia vs. the USA

An increasing trend in the share price can be noted in both the US and AU markets. US Market experienced rapid growth starting in 1997 but has declined in 2000. Both U.S. and AU market declined in 2008.

US stock market is fairly stable on its annual % change with the lowest changes coincide with the Stock Market Crash (1987), the 9/11 terrorist attack (2001), and during the current economic slowdown. The record-high annual % change in 1999 is brought about by the increasing number of smaller companies raising equity capital on the Australian Stock Exchange, increasing investor confidence (ABS, 2008).

(ii) Australia vs. Japan

Australia’s share price index is considerably higher than Japan’s over the span of more than 30 years. There are no notable fluctuations in the Japanese stock market over the 30 year period which explains why the stock price performance has maintained its level.

The annual percentage fluctuation of Japan’s stock market is not as remarkable as Australia’s performance.

(iii) Australia vs. Korea

The market movement of Korea is very similar to the market movement of Australia as can be seen in the graphs of their share prices and the annual percentage change of their share prices. One possible explanation for this behavior of the Australian market relative to the Korean market is the stronger economic relationship between Korea and Australia (Kim, n.d.; 13).

CHECK THESE SAMPLES OF Share Market Collapse - Australian and Chinese Economic Activity

Services Marketing Is Different

Segmentation helps marketers to maximize their return on investment through marketing activity.... In socio-economic, it considers variables like occupation, and educational level of household heads, income, and social standing.... Companies thus design products to meet the needs of particular socio-economic classes.... The benefits of the product give the user economic, cosmetic, and protective and taste like the case of toothpaste....

7 Pages (1750 words) Assignment

Economics of International Business

Though it seems like a long time ago, it was only 2007-2008 when the foreign direct investment and global economic performance decreased to all-time lows.... During that past recent period of global economic recession, the business performance of many industries was at a standstill.... Though it seems like a long time ago, it was only 2007-2008 when the foreign direct investment and global economic performance decreased to all-time lows.... During that past recent period of global economic recession, the business performance of many industries was at a standstill, if not a decline....

20 Pages (5000 words) Assignment

Globalization and Market Access, Big Players in the Chinese Market

nbsp;Globalization is a reference to the closer integration of global economies across the economic, technological and cultural dimensions.... nbsp;Globalization is a reference to the closer integration of global economies across the economic, technological and cultural dimensions.... With the failure of import substitution countries that had suffered from this economic structure started to open up their economies to international trade.... In contrast, the supporters of globalization contend that closer integration of global economies has led to economic progress for all even for the small companies....

10 Pages (2500 words) Coursework

Current Crisis with the Australian Mining Sector: Its Causes and Impact on the Economy

Since the discovery of gold and other mineral resources in Australia, the economic growth due to mining has gone up.... The world has experienced a global economic crisis which has led to a crisis in the mining sector too.... The global economic crisis has caused very bad effects on the mining sector with some companies being feared not to survive if the current situation of the financial crisis continues.... … The paper "Current Crisis with the australian Mining Sector: Its Causes and Impact on the Economy" is an outstanding example of a macro and macroeconomics coursework....

7 Pages (1750 words) Coursework

Government Policy and the Economic Environment - Carbon Tax in Australia

… The paper "Government Policy and the economic Environment - Carbon Tax in Australia" is a perfect example of a micro and macroeconomic case study.... The paper "Government Policy and the economic Environment - Carbon Tax in Australia" is a perfect example of a micro and macroeconomic case study.... As a case study, this article analyses the australian policy on carbon taxation and its effect on foreign investors.... nbsp;Microeconomics is a branch of economics that deals with the market characteristics of the individual customers and organizations in a bid to understand the process of decision making in individual institutions and households....

10 Pages (2500 words) Case Study

Hunter Valley Wine Company - Business Strategies

World economic activity is becoming more and more focused in Asia especially with the expansion of the Asian middle classes.... nbsp;This strategic plan will analyse at the position of Hunter Valley Wine Company (HVWC); its resources, capabilities and competencies as well as its competitive advantages and sustainability in order to identify strategic opportunities in continuing its growth, meet its national australian wine demand as well as venture into the international market....

9 Pages (2250 words) Case Study

Effect of Global Crisis on Australian Economy

… The paper "Effect of Global Crisis on australian Economy" is a perfect example of a micro and macroeconomic case study.... The paper "Effect of Global Crisis on australian Economy" is a perfect example of a micro and macroeconomic case study.... For instance, there was a cessation of issuance of funds to RMBS, despite low-default-rate of australian mortgages (Dyster & Meredith, 2012).... The resultant effect of a weaker economy was a reduction in demand for australian exports....

7 Pages (1750 words) Case Study

Impact of the Global Financial Crisis on an Australian Economy

Australia was in a well-built economic position at the onset of the global financial crisis.... According to IMF (2009), the country enjoyed sound macroeconomic guidelines and structural reforms besides a stable external environment that delivered steady economic growth.... … The paper "Impact of the Global Financial Crisis on an australian Economy" is a good example of a Macro & Microeconomics essay.... nbsp; The paper "Impact of the Global Financial Crisis on an australian Economy" is a good example of a Macro & Microeconomics essay....

8 Pages (2000 words) Essay