Reference no: EM13341597

TITLE: “MICROECONOMIC ISSUES AND THEIR IMPACTS AND RESPONSES”

OBJECTIVE: To critically evaluate the effects of a contemporary microeconomic issue upon businesses and consumers. The issue could have arisen from a particular government or central bank policy decision, from an internal management policy or decision aimed at increasing the competitive capability of a firm or business organisation, or as a result of a cyclical event in the national or global economies. The evaluation is to be written up as a business report of around five to eight A4 pages (excluding references and any appendices) and needs to include an evaluation of how businesses and/or consumers affected by the microeconomic issue have responded, or plan to respond. The focus of the report has to be a specific microeconomic issue and its business and/or consumer impacts and responses, not a lengthy description of general microeconomic theory that does not relate directly to the issue itself.

STEPS IN THE ASSIGNMENT:

1. Choose a particular contemporary microeconomic issue for evaluation. As mentioned above, the issue could have arisen from a particular government or central bank policy decision, from an internal management policy or decision aimed at increasing the competitive capability of a firm or business organisation, or as a result of a cyclical event in the national or global economies. The issue chosen could be one from the list below or another of the student's own choice. However, the topic must be related to the Australian economy.

2. Critically evaluate the issue in terms of its effects upon businesses, consumers or a particular firm, including how the affected parties have responded, or plan to respond.

3. Write a report (in the nature of a business report) on the microeconomic issue and its effects upon businesses and/or consumers and evaluate their response to try and address the adverse impacts of the issue. The length of the report is to be around five to eight A4 pages, plus a list of references and any appendices at the end.Suggested Assignment Topics Page 2 of 4

4. Structure of the report should be based around the following headings: ? Executive Summary - this will be the first page and will be a summary of the key points in the main body of the report that follows. Hence the Executive Summary should be written last, as it does not contain any new material but merely summarises the key points about what is already written. ? Introduction and Background – including a description of the microeconomic issue, the sectors of the economy (firms, businesses and/or consumers) impacted by the issue, how they are impacted in terms of such things as profitability, capital investment, production, consumption, risks to business operations etc. ? Evaluation of Business or Consumer Response – including a description of how the affected sectors of the economy have responded, whether or not their response has achieved the outcomes intended and whether there were any unintended consequences arising from their response. ? Conclusion – stating whether or not, on balance, the business or consumer response could be regarded as reasonable in the circumstances (include reasons), what short term benefits or harm to the business or economy resulted, and a conclusion as to whether or not longer term benefits or harm to the business or economy might be expected in future as a result of their response. ? References – include all references used for the evaluation and report, and cite them correctly using the CDU Harvard Referencing System. ? Appendices - attach any supporting tables, graphs, media releases etc. as appendices at the end. All appendices attached must be referred to somewhere in the report. Suggested Topics 1. The High Australian Dollar: The high Australian dollar has been the centre of much attention since 2007/2008 Global Financial Crisis (GFC). The persistently high dollar against major currencies such as the Euro, the Yen, and particularly the United States (US) dollar which has more than halved in value against the Australian dollar in the last 10 years, has put a lot of pressure on Australian exporters and manufacturers. 2. Inflated Residential Property Prices in Australia and their microeconomic impacts on households, business and government. Australia is in the midst of a property bubble, and it will keep going because the bubble is being pumped up by overseas buyers, largely Chinese and superannuation funds. 3. The Ailing Manufacturing Industry – the contribution of manufacturing to Australia’s GDP peaked in the 1960s at 25%, and has dropped to less than 10% of GDP in recent years - need for a viable export oriented manufacturing industry. 4. Impact of long periods of drought and rising costs on the agriculture sector.

5. Increasing Shortage of Skilled Labour across a range of industries and the difficulties encountered by Australian Businesses in finding suitable Labour.Suggested Assignment Topics Page 3 of 4

6. Ageing population and declining labour force participation. Population projections for Australia suggests that there will be 4 million people aged between 64-84 years by 2022 with rapid acceleration of some age groups (over 65, over 85) in the next 10 years. What are the key issues, available methods of analysis and the economic implications?

7. The Australian Stock Market The Australian stock market has been volatile for the past four years. Investors do not really know where they are. There is optimism when Australian stocks look to be trading at bargain prices and then frustration when poor economic data drives investors out of the market, sending stock prices on another downward spiral. It is hard to invest in Australian stocks in this climate of uncertainty. But despite this, and despite the volatility, there are still pockets of exceptional value to be found in the Australian Stock Market.

8. Australian Automobile Industry The automotive industry is one of Australia’s major manufacturing sectors. It is strategically important part of the Australian economy in terms of investment, jobs, skills, research and development, innovation and exports it generates. The question now is not whether or not the government did the right thing by allowing Ford, Holden and Toyota to shut their factory doors and seal the fate of an industry. Putting aside ideology, the thinking must now shift towards what manufacturing jobs will look like in future; what frameworks and mechanisms are required to ensure job creation, and if we value manufacturing sufficiently to keep investing in a way that emphasises Australia’s natural strength.

9. Australian Airline Industry: Aviation is the most global of all industries. Recent years have been turbulent times for the Australian airline industry. It has been confronted with a number of factors such as, a marked decline in international tourism; rising costs; increased terrorist activities, falling number of travellers choosing to fly with Qantas (around 16%); price and frequency, competition, etc. The above list of suggested topics is not meant to be exhaustive and students may choose another topic identified during their reading in consultation with their lecturer. However, the topic must be related to the Australian economy. PLAGIARISM: Students are reminded of the importance of acknowledging and correctly referencing any written material used in their reports. The report should be written in the student's own words as far as possible. Where wording from an external source is being quoted directly, it is essential that this wording be indicated by quotes (“.”) and referenced correctly so that the marker can readily locate it. Suggested Assignment Topics Page 4 of 4 If you need to clarify any aspects of CDU policy on plagiarism please refer to the CDU Website or discuss with the lecturer.

TIPS

1. Select a topic, one in which you are interested, and for which there is enough information. If your topic is too broad you will have difficulty completing your report in the time allocated. Example: 'The effects of pollution' is too broad because there are so many effects of pollution. Narrow it down to 'The effects of pollution on Kakadu National Park' which is just about the right dimension.

2. Once you have chosen your topic find sources of background information to read. These sources will help you understand the broader context of your research and tell you in general terms what is known about your topic. Use information from a variety of reference sources. These sources include, books, journals, articles, magazines, newspapers, internet and so on.

3. Organise and analyse all the information you have collected and develop an outline of your ideas. An outline shows your main ideas and the order in which you are going to discuss them. 4. Write the main body of your report from the materials and data you have collected. 5. Summary and conclusion. 6. Prepare a title page, table of contents and a bibliography. List of references – include all references used for the assignment and cite them correctly using the CDU Harvard Referencing System.