Examine the effects of changes in trade and financial flows on Australia’s economic performance
I would appreciate a few pointers on what I could write about for this essay, I'm very lost atm
A good idea is to look at the syllabus and find the relevant dot point the essay is trying to refer to.
In this case, it is under "trends in Value, composition and direction of Australia’s trade and financial flows
- trends in Australia’s trade pattern
- trends in financial flows – debt and equity"
There should be information on it if you check out the textbooks
Then you need to link it to "Australia's economic performance", which broadly speaking includes Australia's trades (exports/imports), financial flows, exchange rate, eco growth, unemployment, inflation rate, external stability and *maybe* distribution of income and wealth/environment.
This is a curveball essay - that part of the syllabus is rarely tested and probably won't be asked again but hopefully that gives an idea of what to write
Also, make sure you explain clearly the causative effects since this question asks you to "examine".
e.g.
floating of exchange rate in 1970s -> opened Australia's financial markets by shifting finance easier. Allowed FDI to double by 1980s. Then talk about how increased investment led to:
- increased eco growth (AD = C + G + I + X - M)
- increased employment
- inflation
- comment on borrowing/overseas loans
- explain how it changed exchange rates
etc
You should also focus on BOTH trade and financial flows so try to balance it out.
Oh just to sum it up - in case you're still struggling, the relevant information includes (but not limited to)
- directions of trade (UK -> Japan -> ASEAN etc)
- composition of trade (export less agriculture more minerals; in the future more services). Could comment on changing employment (e.g. less farmers, more people in the mining industry). I think Dutch Disease could be relevant (read more of it from Dixon's textbook)
- technology changes, floating of exchange rates, dereg of financial markets, increase in TNCs, globalisation - these all increased financial flows