Question 01:

Discuss steps which Australia can use to reduce its Current Account deficit.

Question 02:

a) Go to http://www.dfat.gov.au/geo/fs and click on Australia. Using the figures in the fact sheet explain the diminishing importance of the US economy to Australia and the increasing importance of Chinese economy to Australia.

b) Using the above website construct a table which allows you to compare Australia with a country of your choice under the following headings:

• GDP per capita (US $).
• Real GDP growth (% change yoy).
• Current account balance (% of GDP).
• Principal Export destinations and Import Sources.
• Australian total merchandise trade relationship rating.