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Asian Australia Economic Relationship

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Asian Australia Economic Relationship
1. Introduction

Nowadays, the economic situation around the world has become worse. Some problem such as the increasing of bad loans and the declining of share price may influence the macroeconomic activities for each country.
This report will describe the fluctuation of some countries as the examples by using the graphs, thus it will be easier to show how they change in the period to the next period. It contains the share price indexes, real versus nominal, macroeconomic activities, and special about China.

2. Share price indexes
Share price indexes is an index measuring movements in the prices of shares but not their dividends; as opposed to a total return index, which measures both price movements and dividend income. 2.1 Comparison of Australia with USA share price
Actually, the progress of Australia and USA share price was fluctuating. Starting March 1976- March 1996, share price of Australia and USA was increase rapidly. Afterwards, Australia share price was constant. In that period, Australia share price got impact form Asian financial crisis. After the Asian Financial crisis, USA share price was fluctuated where in March 2003, the value of USA share price was dropped to lowest point. Afterwards, the share prices of both countries were increase rapidly until Global Financial crisis in mid 2008. Where, share price from both of country were decrease rapidly.

Figure 2.1

2.2 Comparison of Australia with Japan share price
Japan and Australia are two Asian countries have been affect on the progress of Asian economic. Since March 1976- March 1988, the share prices both of countries were increase rapidly. Afterwards, Japan share price is greater than Australia share price. However, since 1992 the Japanese share price was decrease but Australian share price was increase rapidly to the highest point in March 2007. While, the global financial crisis in mid 2008, the share price both of countries were decrease rapidly.

Figure 2.2



References: 2003, ‘Crackdown on Korea’, Business week, Available: http://www.businessweek.com/magazine/content/03_20/b3833008_mz047.htm (viewed 9 May 2009) 2009,’ China’s weakening economy moves Australia closer to recession’, Chartered Accountants,Available:http://www.charteredaccountants.com.au/news_releases_2009/march_2009/A1 22597481 ( 10 May viewed 2009) ‘Australia economy’, Economy watch, Available: http://www.economywatch.com/world_economy/australia/ (viewed 10 May 2009) Cook, R. 2007, ‘it’s official: the crash of the U.S. economy has begun ’, Available: http://www.globalresearch.ca/index.php?context=va&aid=5964 (viewed 13 May 2009) Greber J, 2008, “Australia 's Economy Faces First Recession since 1990 (Update1)”, Bloomberg, Sydney, Australia. Hua, X. 2009, ‘Slowing China 's growth to impact Australia 's economy: economist’, China Daily,Available:http://www.chinadaily.com.cn/bizchina/2008-10/24/content_7139708.htm (12 May viewed 2009) ‘Japan economy’, Economy watch, Available: http://www.economywatch.com/world_economy/japan/ (viewed 10 May 2009) Kerin, P. 2008, ‘Don’t blame interest rate’, The Australian, available: http://www.theaustralian.news.com.au/story/0,25197,23198370-23850,00.html (viewed 12 May 2009) Lee,H.H. 1999, ‘Korea’s 1997 Financial Crisis : Causes, Consequences and Prospects’, vol 6, pp Skousen,M. 2006, ‘Inflation’s effect on stock market’, Investment U, available : http://www.investmentu.com/IUEL/2006/20060206.html (viewed 8 May 2009)

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