This saw an increase in the business investment level, in the country, as credit was readily available to inject into the businesses.
This saw an increase in the business investment level, in the country, as credit was readily available to inject into the businesses.However, the trend was opposite in funding for housing therefore, in the 2008 world economic crash the business and personal level access to credit dropped, but this was not so in the housing department (ASE, 2012).Tags: Edit Your Own EssayPersonal Educational Goals EssayCreate Online Essay TestAstronomy Essay TopicsWhy Do You Want To Be A Teacher EssayGroup Home Business PlanNature Essay EmersonEssay Writing SystemOhio U Creative WritingInformal Essay About Family
The effect of foreign competition on the country’s productivity is also measured.
After this, the study is narrowed down to the regional economy in order to find out the most economically viable regions in the country.
Therefore, the same amount of money will purchase fewer commodities than it would in the periods where the inflation level is lower.
Since the period that there was an economic downturn in the world economy, Australia’s economy has been recovering though unsteadily (ABS, 2012).
Depending on the spending ability of the market and the economy trends of their region of interest, the investor should consider their ability to attract new consumers in a manner that will lead to maximum profit gains and growth of the business in the face of competitors.
As is indicated in the NAB Business Survey statistics, the business condition of corporations shows an unsteady state of the overall financial condition, with a noted rise in the profit levels towards the year 2012 (NAB, 2012).This is because if the market value of production in a country is low, the currency will trade at a lower value hence making importation of goods more expensive.This will result in increased prices of available goods due to the scarcity of these goods.The other indicator of the performance of an economy in relation to the world economy is the inflation levels in the country.The core inflation level of the leading world economies rises and falls depending on the level of the GDP (IMF, 2012).One of the core indicators of the economy is the Gross Domestic Product.The GDP is the total market value of the final production of goods and services produced within a country within a period usually of one year.Therefore, the consumer price inflation levels have dropped making the economy a viable market for investors as consumers have the spending power and the currency is strong.When considering the consumer price index, the current market prices and the new capital expenditure are put into consideration.However, in the end due to increased borrowing, the interest rate offered by banks will be increased to discourage borrowing and due to increased income from production in the local industries, the GDP will be lowered leading to decreased inflation.According to the statistics provided by the RBA (2012) in the period where there is a drop in the GDP, there is an increase in the inflation level and this may be explained in that with a lower GDP the country’s currency is weaker hence its value is lower.