The paper 'Analysis of Mining Industry from Bust to Boom by Connolly, Orsond" is a good example of a finance and accounting article. The article on the mining industry from bust to boom by Connolly, E. & Orsond, D shows the manner in which the Australian economy has seen widespread growth in the 2000s due to increase in marketing activities. The paper clearly highlights the manner in which the mining industry has grown due to a sudden spurt in the demand for goods and services from all around the world especially China.
The increased demand resulted in the economy to look towards increased activities which had an implication for the whole economy and the different sectors performing there. It presents an opportunity for all the business units to identify the manner in which the growth impetus will help them to achieve high growth rates and can look towards using it to ensure better returns. The article demonstrates beautifully the manner in which growth in the mining sector has helped the Australian economy to grow and shows the effect of growth rate on all the sectors.
The article shows that the growth in the mining sector is mainly due to increased demand for goods and services from China as the infrastructure growth has increased the demand for minerals (Connolly & Orsmond, 2011). This has helped the Australian economy in different ways and has provided the economy with an opportunity to ensure that the economy performs better. The manner in which the infrastructure demand is growing in developing countries the demand for minerals will increase which will further provide an opportunity for economies have rich minerals to use it wisely. One of the major help being witnessed by the growth in the mining sector is the increased demand for goods and services which has helped the economy to grow at a faster rate.
This has led towards increasing the purchasing power as more and more people are being hired for mining purpose which has brought about wide changes in the working strategy. This has helped the intermediaries through an increase in demand for the different inputs which are required to carry out the mining activities. This has thereby helped the other sector as well to gain some momentum through increased sale.
This has also impacted certain regions more than others and has resulted in the growth rate of certain regions to be more than in other regions. The overall development has been such that the demand for investments has increased which has made the banking and other financial sector gains the push they were looking at. This has helped to increase the income of the different equities and directly or indirectly contributed to the growth of the economy.
The overall spread has been such that it will continue to act as a major stone which will determine the success of the economy. It will help to determine the various factors and areas based on which an economy will be able to project better growth rates and will provide an opportunity through which economies are able to ensure better disposable income. The article also predicts that the manner in which the industry is witnessing growth and increased demand will make the local economy to look towards another economy so that more and more labor can be supplied.
This will result in a contagion effect and will also help other economies who have a good supply of minerals. The domestic activity of Australia, as a result, has seen widespread changes and is looking towards projecting high growth rates.
ReferencesConnolly, E. & Orsmond, D. 2011. The mining Industry: From Bust to Boom. Research Discussion Paper, Reserve Bank of Australia.