Description
I need to write about Australia and will be compared with USA and Canada
Develop a minimum 1,050-word analysis of the international economy in which you do the following:
- As a team, choose three countries from the list below. Research each country, using resources such as the CIA World Fact Book, World Bank data, World Trade Organization (WTO), and the Federal Reserve Bank. Research each of your three chosen country's economic, political, and cultural development:
- USA
- Australia
- Canada
- China
- Saudi Arabia
- Democratic Republic of Congo
- France
- Germany
- Great Britain
- Italy
- Japan
- Analyze measures of economic growth and of comparative and absolute advantage in international trade.
- Use tables and/or graphs to compare the following economic statistics/indicators of your three chosen countries for the most recent year available and for 2009 (the trough of the last economic cycle):
- Country Real GDP
- Country CPI
- Country Real Exports
- Country Real Imports
- Country Unemployment Rate
- Country Industrial Production
- Discuss reasons why the economic growth of the three countries varies. How does international trade influence the strength of the economy worldwide?
- Discuss the following for each country:
- At least two products that have provided the country an absolute advantage in trade (if any).
- At least two products that have provided the country a comparative advantage in trade.
- Factors that might have prevented any of your three chosen countries from achieving absolute and/or comparative advantages.
Cite a minimum of three peer-reviewed sources.
Format the assignment consistent with APA guidelines.
Explanation & Answer
Attached.
Running Team: Comparative and Absolute Advantage
Comparative and Absolute Advantage
Team:
ECO 561
Instructor’s name:
Date of submission:
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Comparative and Absolute Advantage
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Comparative and Absolute Advantage
This paper analyzes and compares the economic, political and cultural development of
three countries; Australia, USA, and Canada. Further presents on measures of economic growth,
comparative and absolute advantage in international trade. Economic statistics of the country,
and reasons why their economy varies, and effects of international trade on their economic
strength. Finally, analyze products that give the countries absolute and comparative advantage as
well as factors that might prevent achievement of the two states.
Economic, Political, and Cultural development
Australia
Australia’s GDP for the year 2016 was 1.205 trillion US dollars. Australia’s economic
growth rate is 2.8% per year. It has an unemployment rate of 5.7% and inflation of 1.3%. It is
competitive in services, technology, and high-value goods. Innovation and science sectors
account for 60% of Australia’s GDP and continuously improve its value. Australia has a
population of 24.13 million. Australian’s culture was impacted by the British with a dominant
language of English and multilingualism in some populations. The value of imports and exports
constitute 40% of the GDP and a tariff rate of 1.9%. The country has three class divisions, the
working, middle and upper class (The World Fact Book, n.d).
Australia has a stable political environment enhances an efficient legal system, and
transparency thus promotes entrepreneurship. Its government integrity was rated at 77.4%. The
government has four tax systems top income, flat corporate, capital gains and value-added tax.
Government spending for the last three years has been 36% of the total GDP, and budget deficits
Comparative and Absolute Advantage
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are 2.8% and a public debt of 41.1%. Australia is an open market. Gover...
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