Economics – Media Economics – Media FolioFolio

Nick DukeNick Duke

Beef row with Japan Beef row with Japan sizzlessizzles

Financial Review, 2-3 August Financial Review, 2-3 August 20032003

Mark DavisMark Davis

SummarySummary

Japan has increased tariffs on Japan has increased tariffs on Australian beefAustralian beef

Protests at Japan’s EmbassyProtests at Japan’s Embassy Need for WTO reformNeed for WTO reform

Influencing FactorsInfluencing Factors

WTO’s special “safe-guard” WTO’s special “safe-guard” provisionprovision

Foot and Mouth diseaseFoot and Mouth disease

ConsequencesConsequences

Positive for Japan in short-termPositive for Japan in short-term Lost sales of $80 millionLost sales of $80 million Negative effects on the Balance Negative effects on the Balance

of Paymentsof Payments UnemploymentUnemployment Contraction in demand for beefContraction in demand for beef

Related PoliciesRelated Policies

Negative effects on relationship Negative effects on relationship with Japanwith Japan

Need for unemployment policiesNeed for unemployment policies New trade agreements neededNew trade agreements needed Monetary policyMonetary policy

Bias in ArticleBias in Article

Written form Australian point of Written form Australian point of viewview

Only looks at negative effects Only looks at negative effects that occur to Australiathat occur to Australia

Long road ahead as Long road ahead as trade talks begintrade talks begin

The Age, 21 July 2003The Age, 21 July 2003

Phillip HopkinsPhillip Hopkins

SummarySummary

Free trade negotiations have a Free trade negotiations have a good chance of successgood chance of success

Scheduled for completion at end Scheduled for completion at end of the yearof the year

Free trade does not always have Free trade does not always have positive effectspositive effects

For Australia and America For Australia and America estimated positive effectsestimated positive effects

Influencing FactorsInfluencing Factors

Trade Minister Mark VaileTrade Minister Mark Vaile 20 negotiating teams20 negotiating teams The Australian United States Free The Australian United States Free

Trade Agreement Business GroupTrade Agreement Business Group Improving relationship with USImproving relationship with US

ConsequencesConsequences

Australian economy will increase Australian economy will increase by $15.5 billionby $15.5 billion

US economy will increase by US economy will increase by $16.9 billion$16.9 billion

Appreciation of dollarAppreciation of dollar Balance of PaymentsBalance of Payments On industriesOn industries EmploymentEmployment

PoliciesPolicies

Monetary policyMonetary policy Trade agreementsTrade agreements

BiasBias

Little biasLittle bias Mainly evidence and quotesMainly evidence and quotes Emphasizes positivesEmphasizes positives

Free trade deal on Free trade deal on the tablethe table

Herald Sun, 22 July 2003Herald Sun, 22 July 2003

Gerard McManusGerard McManus

SummarySummary

Australian negotiators put offers Australian negotiators put offers forwardforward

Involves reduction of tariffs and Involves reduction of tariffs and deregulation of marketsderegulation of markets

Large boost to Australia’s Large boost to Australia’s economyeconomy

Influencing FactorsInfluencing Factors

Prime Minister John HowardPrime Minister John Howard Trade Minister Mark VaileTrade Minister Mark Vaile 50 negotiators50 negotiators American IndustriesAmerican Industries US CongressUS Congress

ConsequencesConsequences

Increased revenue for some Increased revenue for some industriesindustries

Reduction of tariffsReduction of tariffs Decrease labeling requirementsDecrease labeling requirements Some industries may still be have Some industries may still be have

tariffs imposed by Americatariffs imposed by America $3 billion a year boost to economy$3 billion a year boost to economy

PoliciesPolicies

Monetary PolicyMonetary Policy Interest RatesInterest Rates TradeTrade

Car makers shift gear Car makers shift gear to accelerate export to accelerate export drivedrive

Financial Review, 2-3 August 2003Financial Review, 2-3 August 2003

George LekakisGeorge Lekakis

SummarySummary

$3 billion earned in exports$3 billion earned in exports Asia is the test for Australian auto Asia is the test for Australian auto

industryindustry Exporting of Australian made cars Exporting of Australian made cars

cancel out the increase in cancel out the increase in Australian buying of imported carsAustralian buying of imported cars

Australian producers created niche Australian producers created niche productproduct

Influencing FactorsInfluencing Factors

Trade AgreementsTrade Agreements Holden and ToyotaHolden and Toyota Relationship between US and Relationship between US and

Middle EastMiddle East

ConsequencesConsequences

Balance of PaymentsBalance of Payments Appreciation of the dollarAppreciation of the dollar Increased employmentIncreased employment Creation of a strong industryCreation of a strong industry

PoliciesPolicies

Monetary PolicyMonetary Policy Trade AgreementsTrade Agreements

BiasBias

Talks about both positive and Talks about both positive and negativesnegatives

Brazin bid to follow Brazin bid to follow fashionfashion

Herald Sun, 17 July 2003Herald Sun, 17 July 2003

Olga GalachoOlga Galacho

SummarySummary

Brazin is considering to move into Brazin is considering to move into surfwear marketsurfwear market

Scaling down music operationsScaling down music operations Linking with surfwear companiesLinking with surfwear companies Investors unsureInvestors unsure

Influencing FactorsInfluencing Factors

Internet and CD BurnersInternet and CD Burners Director of Brazin, Tiny HoDirector of Brazin, Tiny Ho Yoda Holdings, major shareholderYoda Holdings, major shareholder Chief Executive of Brazin, Brett Chief Executive of Brazin, Brett

BlundyBlundy

ConsequencesConsequences

Improved Balance of PaymentsImproved Balance of Payments Less competition in Australian Less competition in Australian

music marketmusic market May see Australian surfwear May see Australian surfwear

being exportedbeing exported

PoliciesPolicies

Trade AgreementsTrade Agreements Monetary PolicyMonetary Policy

Our miracle growth Our miracle growth hits speed bumphits speed bump

The Australian, 4 September The Australian, 4 September 20022002

Sid MarrisSid Marris

SummarySummary

Economic growth is likely to slowEconomic growth is likely to slow Economic growth 3.8% for the Economic growth 3.8% for the

yearyear Interest Rates 4.75%Interest Rates 4.75% Inflation 2.2%Inflation 2.2%

Influencing FactorsInfluencing Factors

RBARBA Treasurer, Peter CostelloTreasurer, Peter Costello Other countries economic Other countries economic

instabilityinstability Previous large economic growthPrevious large economic growth

ConsequencesConsequences

Appreciation of dollarAppreciation of dollar Negative effects on Balance of Negative effects on Balance of

PaymentsPayments Possibility of InflationPossibility of Inflation

PoliciesPolicies

MonetaryMonetary Interest RatesInterest Rates TradeTrade

Threat to growth as Threat to growth as A$ busts US 65cA$ busts US 65c

The Australian, 13 May 2003The Australian, 13 May 2003

Geoffrey NewmanGeoffrey Newman

SummarySummary

Dollar passed US 65cDollar passed US 65c Increasing demand for Australian Increasing demand for Australian

dollardollar Strong domestic economyStrong domestic economy

Influencing FactorsInfluencing Factors

$1.9 billion float of Promina$1.9 billion float of Promina Sliding of US dollarSliding of US dollar Higher interest ratesHigher interest rates Strong domestic economyStrong domestic economy Reserve BankReserve Bank

ConsequencesConsequences

Forecasts incorrectForecasts incorrect Slow growthSlow growth Difficult for exportersDifficult for exporters More competition for local More competition for local

industriesindustries RBA make profitRBA make profit Negative effects on the Balance of Negative effects on the Balance of

PaymentsPayments

PoliciesPolicies

Monetary PoliciesMonetary Policies Interest RatesInterest Rates TradeTrade

Kiwi trips up pecking Kiwi trips up pecking orderorder

The Australian, 16 July 2003The Australian, 16 July 2003

SummarySummary

Australian dollar decreased due to Australian dollar decreased due to depreciation of NZ dollardepreciation of NZ dollar

Influencing FactorsInfluencing Factors

New Zealand inflation figuresNew Zealand inflation figures New Zealand predictionsNew Zealand predictions US economyUS economy Appreciation of EuroAppreciation of Euro

ConsequencesConsequences

Increased investment in AustraliaIncreased investment in Australia Improves balance of paymentsImproves balance of payments Imports more expensiveImports more expensive

PoliciesPolicies

Monetary PoliciesMonetary Policies Interest RatesInterest Rates TradeTrade