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sunjet

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Ok i got this essay question just for homework, bit stuck on one part of the question:

"Analyse impact of the changes in the international movement of funds on the Australian economy and another economy"

My question is, does "the changes in the international movement of funds" refer to changes in FDI flows and portfolio investment etc? or International Finance or Both?

Thanks in advance
 

llamasohee

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well.... first of all u have to analyse impact of the changes in the international movement of funds on the Australian economy and another economy then you have to find out the changes in the international movement of funds" refer to changes in FDI flows and portfolio investment etc? or International Finance or Both
 

Rekkusu

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"Analyse impact of the changes in the international movement of funds on the Australian economy and another economy"

Hmm as for this question, this is how I'd approach it:

(Funds mean actual money flowing around --> Financial Flows)

Since its a homework question, the teacher will be expecting alot from you, so try and place in as many financial flows as well. Mainly focus upon: -

> FDI Inflows and FDI Outflows in both economies, relate its impact upon Individuals (including both consumers and workers), Firms, and the how the Government controls FDI inflows/outflows.

> Portfolio flows, once again follow the above setup, and relate its impact upon Individuals, firms, and the Government.

To get top marks in your essay, try and relate it back to impact of the Asian Financial Crisis in both Australia and the economy of your choosing (that is, if its in Asia). Use appropriate statistics, and nearing the end of your discussion, try and also talk about recent events causing Australia's FDI flows and Portfolio flows to fluctuate (--> America's Economy) For you've heard of the saying that when America Sneezes, the rest of the world catches a cold. So you may relate it closely between your chosen economy and Australia, but attempt to integrate America into the picture.

Wrap it up with a good conclusion with your forecast between Australia and your chosen Economy's flows.
 

sunjet

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Rekkusu said:
"Analyse impact of the changes in the international movement of funds on the Australian economy and another economy"

Hmm as for this question, this is how I'd approach it:

(Funds mean actual money flowing around --> Financial Flows)

Since its a homework question, the teacher will be expecting alot from you, so try and place in as many financial flows as well. Mainly focus upon: -

> FDI Inflows and FDI Outflows in both economies, relate its impact upon Individuals (including both consumers and workers), Firms, and the how the Government controls FDI inflows/outflows.

> Portfolio flows, once again follow the above setup, and relate its impact upon Individuals, firms, and the Government.

To get top marks in your essay, try and relate it back to impact of the Asian Financial Crisis in both Australia and the economy of your choosing (that is, if its in Asia). Use appropriate statistics, and nearing the end of your discussion, try and also talk about recent events causing Australia's FDI flows and Portfolio flows to fluctuate (--> America's Economy) For you've heard of the saying that when America Sneezes, the rest of the world catches a cold. So you may relate it closely between your chosen economy and Australia, but attempt to integrate America into the picture.

Wrap it up with a good conclusion with your forecast between Australia and your chosen Economy's flows.
Thank's champ, I pretty much gathered all that already as I had to start.
 

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