HY Help. (1 Viewer)

[aek]

Hey guys,

I have my half yearlies next week and i need desperate help with the following question:

• What are the problems associated with a high current account deficit? Suggest solutions for overcoming the external stability.
  

Any help would be appreciated; because i'm craving help badly

Thanks in advance.

ps. can you also have a look at my globalisation essay on china - more formally "the effects of globalisation on the economy. What strategies has the govt. put in place to promote growth and development?

 

[aek]

Sorry, here is the essay.

 

[gnrlies]

What are the problems associated with a high current account deficit? Suggest solutions for overcoming the external stability.

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In the introduction I would identify that the CAD in many countries such as Australia, is the premier external stability problem

Part 1 - I would then go on to talk about some of the structural causes of the CAD (dont get too wrapped up in this part, as the question does not ask for it). Perhaps give an australian perspective. So things like:

-BOGS (quote figures, as percentage of GDP, giving the range)
-net incomes (again, as percentage of GDP, comment on it being the structural component of the CAD)
-foreign investment (as being the K&FA side of the BOP)
etc etc

Part 2 - Then I would go on to talk about all the problems assosciated by the CAD in a categorical sense.

Things like:

-Debt Trap (cads are self worsening)
-Speed Limit on growth (any profits earnt are simply shifted overseas rather than being reinvested)
-Risks assosciated with capital flight (1997 asian financial crisis)
-Investor confidence (1997 asian financial crisis)
and then anything else you could think of.

part 3 - But I would then also go onto put perspective on the CAD. to say that its not always bad. So i would go on to talk about things like:

Pitchford hypothesis (commenting on australias CAD)
Avenue for economic growth (cad represents investment in australia)
Historical necessity for CAD (low national savings)
Cads can be sustainable (IMF's 6% sustainable CAD figure)
Nature of CAD determines whether it is good or bad (i.e. government Vs private sector debt, returns on profitable investments arent exactly a bad thing)


Hope these headings give you a guide.

Dont forget some statistics. Dont get tied up in things that arent relevant to the question. Give more explanation for part 2, and less for part 1 and 3.

 

[aek]

Thanks, that structure is really going to help me

Did anyone have a look at my globalisation essay?

 

[Riviet]

You might want to cut down on the length of your essay if you only have 35 minutes (the recommended time for one extended response in the HSC exam). You should practise writing the essay and answer other globalisation related questions and see how much you can write in that time. Good luck with your half yearlies.
Edit: As Without Wings has said, you can allow yourself more time, say 45-50 minutes for the essay and spend a little less time on the short answer/multiple choice.

 

[aek]

- You need to work on your structure - it is a bit wish washy. Try to have more than 1 or 2 sentences in a paragraph. You should be bringing up a new idea for a new paragraph not 1 idea every 3 paragraphs. Paragraphs should have an "introduction sentence", body and then concluding sentence which brings it all back to the question.
- You need to proof-read it, there's sentences that don't make sense.
- Some of your arguments can be expanded on.
- Remember not to just state statistics but to discuss them as well.
- Always relate it back to the question!!
- Always use black font - it's more user friendly
- It's Globalisation not Globalization, utilisation not utilization etc. Your computer may have your default spelling as American.

I recommend you check out some past students essays to give you an idea of how they have gone about it. Check out the resources page here

Cheers, that was really useful