Impact of Dollar Rise on Retail Sector

The aim of this research proposal is to investigate the steps to avoid the pitfalls of a high value of the Australian dollar on the retail sector. To achieve this, an explanatory research design was chosen, which will provide a comprehensive understanding of the topic. The inductive approach will be used to collect and analyze data, focusing on qualitative aspects. The research method involves collecting and analyzing existing data from various sources, including academic journals and industry reports. A positivist research philosophy will guide the research, emphasizing objectivity and reliability. The quantitative data analysis will involve statistical methods to identify patterns and trends in the data.

BUSINESS RESEARCH PROPOSAL
STUDENT NAME:
STUDENT ID:
1

Abstract
During the contemporary period, Australian population and economy has witnessed a sharp rise
in value of Australian dollar in foreign trade exchange. According to the current financial report,
the value of Australian dollar is increased by 4.1% than previous value which ultimately provide
great and prolonged impact on the social as well as economical setup. The main purpose of the
research proposal is to investigate the impact of this increase rate in the value of Australian
dollar on the country’s retail industry. It has been observed that, there are almost 170,000 retail
organisations are located throughout the Australia and almost 10.9 percent of the total population
are solely depend on this particular industry for earning purposes. In that context, this research
proposal has a significant value as it can highlight over the actual effect of such rise on the retail
industry as well as on a specified group of a population which mainly includes customers,
employees, employers, shareholders.
2

Table of content
Chapter 1: Introduction....................................................................................................................5
1 The research problem...................................................................................................................5
2 Background...................................................................................................................................6
3 Ethical consideration....................................................................................................................7
4 Literature review...........................................................................................................................8
Introduction......................................................................................................................................8
Economic impact related with dollar value enhancement...............................................................9
Impact of frequent currency value fluctuation.................................................................................9
Government intervention into the issue.........................................................................................10
The impact of dollar value increase upon retailing industry.........................................................10
Negative impacts in relation with the issue...................................................................................11
Summary........................................................................................................................................11
5 Aims and objectives of the research...........................................................................................12
7 Research philosophy...................................................................................................................13
8 Data collection............................................................................................................................14
9 Data analysis procedure..............................................................................................................14
Reference list.................................................................................................................................16
3

Gantt chart.....................................................................................................................................18
4

Chapter 1: Introduction
1 The research problem
In recent times, Australian economy has witnessed a sudden and sharp rise in the value of
Australian dollar in share market. This increase rate in dollar has the potentiality to bring
effective improvisation in the entire economical setup of the nation which ultimately can
maximise the economical sustainability of the nation. This sudden hike in value of the Australian
dollar is only possible because of the sudden downfall of US$ in international share market. This
increase rate in dollar has helped the Australian government in generating huge revenue by
which they can able to maintain sustainable economical development for the nation. This sudden
hike in value of dollar also gives them opportunity by which they can make improvement in their
NI and overall GDP growth rate (Kim, S.J., 2015). Retailers are assumed as an emissary between
the producers and the consumers. Their efficiency and effectiveness in business operational
process can ensure that the consumers or the customers can get opportunity to enter into the
widest range of products in best price. The effective operational performance of a retailer can
also make it sure that the customer can receive superior service provision in accordance to their
needs and preferences. So, it can be accepted that, the total GDP rate of a country can depend on
the retail marketing to a large extend (Robinson et al. 2017).
This research proposal is conceptualised on the impact of sharp rise of dollar on the Australian
economy and especially on the retail sector.
This current research proposal contains a research background that provides readers a brief and
elaborate description about the overall impact of the increase rate of the dollar on the Australian
retail sector (Lim et al. 2014). The research background also gives an intricate explanation about
the potential effect of the rise of the value of dollar on the certain group of people in overall
population like: consumers, employees, employers, business owners, government.
5

This research report also contains a specified aim and objectives of the research proposal that
highlighted on the exact importance or the significance of the research work.
The given research hypothesis which are relevant with the research topic can also provide an
ample amount of help to the researcher by which he can draw some research questions.
Moreover, all the necessary ethical consideration that is associated with the scenario or the
research topic is also being discussed.
2 Background
The national income or the GDP growth rate of any developed country depend on the retail
industry to a large extend. Retail industry of a country plays important roles, like: it introduces
the customers to wide range of products, offer assistance to them so that they can buy good
products at best price (Hambur et al. 2015). So, as a whole, it can be assumed that, retail
industry can provide their effective contribution in generating huge revenues for the government
of a nation. On other words, it can be said that, the prolonged economical sustainability can be
easy to maintain if a large population of a country solely depends on the retail industry for
earning purposes. So, retail industry can be considered as an important and contributory business
sector for any nation. In context of Australia, it has been observed that, there are all around
170,000 retailing organisation situated in Australia and almost 1.3 million people of total
population solely depends on the retail industry for earning purposes (Lim et al. 2014).
Therefore, the retail sector has been accepted as one of the largest sector for employment in
Australia. Similarly, many research reports, publication sheds light on the fact that, the retail
industry also has the potentiality to make significant contribution in financial output of the
Australia; the government of Australia can earn $59billion for every year from this retail market
which is almost 5.1 percent of the GDP rate of Australia (according to the 2009- 2010 financial
year) (Apergis, 2014).
6

This research study is based on assessing the impact of sharp increase of dollar on retail industry.
During this recent time, the Australian population and its economy have witnessed a sudden hike
in the value of Australian dollar in international share market. The report published in 2015-16
financial year, reveals that there has been a sudden increase of almost 4.1% of the value of
Australian dollar which in turn provides a great impact on the social and on the economical
background of the nation (Brown and Lawrence, 2017). In case of international share market or
in foreign trade exchange, the Australian dollar has an important position along with the US$,
Euro and the Yen. This sharp rise in the value of Australian dollar is only possible due to sudden
downfall of the US$. Another reason behind this sudden increase is that the government has
imposed high interest which ultimately impact upon the foreign exchange market. Due to this
positive effect, the government of Australia also get golden opportunity to generate huge
revenues for the nation. This in turn provides an opportunity to the nation for experiencing a
rapid and sustainable growth in GDP (Anderson et al. 2016). According to recent financial report
(published in 2016), due to this hike in value of the dollar, currently the Australian dollar is
accounted as the 5th largest throughout the world. Apart from this, in foreign trade exchange, now
Australian dollar is occupied an important position with the total share value of almost 6.9% with
respect to the world’s total daily share value of Dollars (Brown and Davis, 2015).
7

So, in that context, it can be assumed that, due to high value of currency, consumers of Australia
can get enough opportunity to buy foreign products at a good or cheaper price. This ultimately
can provide positive impact on the Australian trade industry especially on retail industry as the
employers or shareholders can get golden chance of achieving economical benefits as well as
competitive advantages in global business arena. More formally it can be said that, increase in
value of the Australian dollar can facilitate purchasing capabilities of the consumer to a greater
extent which in turns can offer positive impact on the country’s retail sector (Fleming and
Measham, 2015). In simple words, it can be said that, increase in the value of the dollar signifies
that, the retailer can purchase foreign goods or products in mush cheaper price, so in turns he can
sell that same product to the consumer at good price but keeping his own profitable margin
intact. So, as a whole it can be concluded that, increase in the value of the Australian dollar can
provide great impact on the retail industry as well as on the customer and employers.
3 Ethical consideration
In order to carry out any research study with serious consideration for any academic reason, it is
the foremost necessity and basic requirement to abide by all the ethical consideration associated
with the research study. The research proposal is carried out on the topic of “ impact of sharp rise
in dollar on retail market of Australia” (Humphries, 2017). So, in order to carry out this research
proposal with ease and efficacy, the research has the necessity to look over his data collection
procedure. The appropriate consideration of the ethical issues related with the research work can
ensure the researcher that all the data which is accumulated by him is relevant and accurate with
the topic. Moreover, according to the “Data Protection Act, 1998”, the confidentiality and
secrecy of the collected data has to be maintained by the researcher that should be concealed
under the premise of the academic jurisdiction (Gummesson, 2017). To maintain the ethical
consideration, regarding the data which are collected from secondary resources like book,
existing literature reviews, the research has the foremost essentiality to ensure that those data
should be used solely for the research purposes.
8

4 Literature review
Introduction
The contemporary times have witnessed a rising concern related to Australian context (Burtt and
Dargusch, 2015). There has been a sudden lift of 4.1% of dollar value since July thus having a
wide range impact upon the social, economic and historical backgrounds. This event has
successfully able to pose a positive impact upon the economic condition of the country. It is in
due course of lowered US dollar that has given Australia to increase their value. An overall
positive impact can be gagged as the rising dollar value has resulted in Australian government to
generate greater revenues. This has in turn enabled the nation to experience a growth in the GDP.
It was according to the annual reports of 2016 that Australian dollar accounted as the 5th largest
in the world (Anderson et al. 2016). Calculating the world’s total daily share of dollars Australia
accounts for 6.9% of it. With respect to the foreign trade exchange the Australian dollar seems to
occupy a significant and prominent position. The government of the said country plays the most
important role behind the soaring values of Australian currencies. Increased interest rates are
found to be imposed upon the foreign exchange market by the government of Australia which
has naturally led to cause rise in their currency values. The greater the diversity working upon
the economic systems the better shall be for Australia to improve their currency values.
Economic impact related with dollar value enhancement
Considering the impact of this phenomenon upon the economic and financial factors of the
retailing industry specifically the importing rates are to get reduced drastically (Scollo et al.
2015). The availability of foreign goods and products at cheaper costs shall facilitate the budgets
of the customers. An automatic rise in the customer buying behaviour shall be noted in terms of
the retailing business scenario. The impacts are not limited to this extent; a tough competitive
advantage shall be gained and witnessed within the global market. As the entire retailing industry
is likely to experience the same circumstances every specific organisation shall wish to sell the
goods at much cheaper rates to beat the other and establish a competitive edge.
9

The other significant factor aligned with the increase in Australian currency value other than the
government intervention is the recent drop in the value of US dollars. Be it the customers, the
suppliers or the owners a positive impact has befallen upon people residing within Australia
(Wardle and Chang, 2015). The people who went from other countries to reside in Australia shall
also be equally benefitted as they can purchase foreign commodities at cheaper rates.
Impact of frequent currency value fluctuation
It is evident from the empirical research that a frequent fluctuation of interest rates with respect
to the Australian currency shall have a direct impact upon a number of factors. They are likely to
give rise to both positive and negative impacts, depending upon the particular sector under
10

concern. As the heightened value of Australian currency is likely to make the imported product
available at cheaper rates which shall enhance the market position. The Australian business shall
encounter with achieving greater competitive advantage within the spectrum of global
environment. This will ultimately result in experiencing an improvement in the economic state of
the nation (Oliva et al. 2014). On concentrating the focus upon the retailing industry the event is
likely to have a positive impact by driving the customers to engage into greater buying activities.
As the level of competitive advantage rises, the customers get to compare the best prices and
avail the products and services at the cheapest costs possible.
Just as the positive impacts of rise of dollar value are enjoyed by the customers of the retailing
industry, there lies a simultaneous negative impact upon the associated employees. The elevation
in the dollar value in Australia has resulted in the total number of working staffs involved within
the retailing sector. The business organisations comprising the said industry have experienced a
serious concern related with issues of unemployment. It is not only a negative event for the
employees but also equally serious phenomena for the employers (Fleming and Measham, 2015).
The increasing unemployment rates have implicated pressure upon the employers as an increased
amount of spending shall get allotted for hiring the fresh set of human resources.
Government intervention into the issue
As the business transactions are intrinsically associated with the government policies and
regulations of the particular country such significant national events are bound to have complex
impact. The government seems to have a great impact upon the financial and business processes
through their policies and regulations. It becomes therefore necessary at times for the
government to show effective intervention upon the foreign capital value changing phenomena.
It is the foreign exchange rates and the capital invested for the foreign goods and services that
determine an enhancement in the foreign cash flow. One of the interrelated and inevitable
segments of the retailing business industry is the taxation regulations in relation to them (Brown
and Davis, 2015). As the prices of the diverse consumer products are experiencing fluctuation a
simultaneous transition is necessary in the taxation policy of the particular nation. Just as the
taxation policy related with the Australian retail industry in liable to get altered the economic
11

policies are also to undergo wide number of changes. These transitional processes shall enable in
dealing with issues that are intrinsically associated with unemployment.
The impact of dollar value increase upon retailing industry
In relation with Australian retail industry it can be signified that risen dollar value has enhanced
effects upon retailers across the country (Oliva et al. 2016). As the import trade gets facilitated
by this factor, a subsequent increased buying power is noted. This enhancement in the buying
power is rendered upon the customers. The products and services are getting increasingly
lowered on the expensive meter thus ensuring greater buying trends on the part of the customers.
Although the export transactions become expensive the buying power within the Australian
boundary remains restored. The customers thus experience a wide range of benefits because of
12

the lower price of imports. However, these circumstances give rise to a state of inflation which
automatically leads to reduction in the rates of interest (Di Iorio and Faff, 2015).
Negative impacts in relation with the issue
The economy of the country is gets greatly benefited with the increase in the value of dollar. The
native companies encompassing the retailing industry of Australia experience increased profit
ranges in terms of their earnings rather than those of the foreign companies. In relation to such a
consequence the rates of interest tend to increase with the curve of economy rising up. However,
it can be stated that the financial accounting associated with the retail business industry undergo
a positive as well as a negative effect (Pollack and Reuter, 2014). The factor of increasing rates
of dollar value is indicative of the fact that the nation’s economy undergoes enhancement. This
in turn is considered as a determinant to add to the profitability of the said country.
On one hand as the native retailing businesses which originally originate in Australia are
encountering with beneficial effects the business foreign to Australian country are suffering with
increased export rates. The foreign countries are facing huge losses on transacting commodities
with Australia, which is definitely counted as a significant negative impact (Manalo et al. 2015).
The corporate earning with respect to these outcomes is greatly disappointed for high rates of
Australian dollar as the profit amounts are decreasing in nature.
Summary
The existing literature in the said context is emphasising upon the fact that Australian dollar
plays a significant role in determining the financial and economic systems of the country. With
special reference to the retail industry exports, imports, investments on domestic and
international levels are affected by the exchange rate fluctuations (Sutton-Brady et al. 2015).
Although the past few years were effective in maintaining stability in terms of dollar value the
recent years have seen fluctuations with a rise in the value. The move of currencies and their
values also result in movement in the prices of the commodities along with the share of
companies which are commodity based. The Australian retailing industry is identified as that one
sector which is greatly dependent upon transaction and exchange of commodities. However,
13

significant impacts upon the pricing of such commodities which are involved into the mentioned
sector are likely to take place. Every sector concerning the Australian paradigm is known to be
affected through this varying dollar value in a different manner (Speer et al. 2015). One of the
most significant factors relevant with the issue is likely to reflect that if the company’s exchange
rates are affected a subsequent effect is going to befall upon the consumers as well. When the
retailing industries of Australia are found to gain in terms of profitability due to increased value
of dollars the customers shall be benefited. The consumers shall be able to avail the commodities
of their choice at much cheaper rates hence the buying behaviour shall experience a sudden
enhancement. The increased competitiveness among the wide range of retailing companies in
Australia shall allow the customers to opt for the most feasible option among the varieties (Oliva
and MacGill, 2014). However, the level of positivity is found to be more than that of the negative
factors related with the issue under consideration.
5 Aims and objectives of the research
The primary aim of this research proposal is to focus upon the potential reason and the probable
outcome or impact of the increase rate of the Australian dollar in entire economical setup.
Another aim of this research proposal is to investigate the feasible impact of the “increase rate of
dollar” on a specific group of people in diverse population like consumers, employees and
employers, stakeholders and so on.
This research study has another aim to sheds light on the potential challenges or effects on the
retail industry which may arise in near future due to the high rate of the Australian dollar.
1. To investigate the recent effects of “ high value of Australian dollar” on retail
industry
2. To analyse how this “ high value of dollar” can affect the economical
sustainability or entire financial setup of Australia
14

3. To analyse how the raise in dollar can impact upon the employees, employers,
shareholders who are associated with the retail sector
4. To investigate the steps by which the pitfalls of the high value of dollar can be
avoided
5. To make research recommendation
6 Research design
In order to provide a systematic pathway for executing the research work with ease and efficacy,
the basic prerequisite of research work is the choice of an appropriate research design. The
research design which is used for this particular research proposal is explanatory in nature. This
design strategy can provide adequate help to the researches in exploring the additional and
requisite aspects regarding the research questions. By adopting of choosing this research design,
researcher can easily investigate or examine the effect of increase rate of dollar on the retail
sector of Australia. With an appropriate explanation, the underlying queries regarding the
research questions can be made clear and one can easily highlights upon the effect of increase
rate of dollar on specified group within a population with proper precision (Fletcher, 2017).
7 Research philosophy
Before initiating any research work in successful manner, the fundamental prerequisite is to form
a platform, on the basis of which the specified research work is to be taken forward. Appropriate
research philosophy can give a supportive structure to the research work that can hold the actual
structure or the conception of the research. Research philosophy can be categorised into several
components like: positivism, Interpretivism, realism. In accordance to the research context,
positivism research philosophy can be taken as suitable. By incorporating positivism research
philosophy, the researcher can scrutinise the qualitative information in descriptive manner and
can also analyse the research questionnaires without any manipulation or biasness (Rose, 2018).
15

This research philosophy accepts those existing information and the facts which are relevant with
the research context and discard those which are irrelevant.
8 Data collection
An inductive research approach can be considered as suitable tool by which one can carry out his
research work by focusing on specific observation and findings only. Those observations can
consider as the best possible way to reach an effective conclusion in accordance to the research
context (Fletcher, 2017). This research approach can also provide adequate opportunity to the
researcher by which he can frame or formulate additional theoretical conception relevant with
the research topic. So, compared to the deductive research approach, inductive research approach
can be considered as suitable for this current research proposal which is also known as “bottom-
up” approach.
In order to execute the research proposal in a systematic manner, the research follows
“secondary method” for collecting data from genuine sources. For the present research topic,
secondary methods are accepted as suitable for retrieving data and information regarding the
research topic. More formally, it can be said that, in order to analyse or explore the potential
outcome or effect of the increase rate of the value of Australian dollar on the retail sector,
existing literature reviews, recent newspaper reports, and articles can be suitable for researcher.
Furthermore, all the data which is collected by the researcher regarding the research context must
be recorded against close ended survey questions. The close ended research questions can
provide ample amount of help to the researcher in evaluating and understanding the positive and
negative impact associated with the topic of research.
9 Data analysis procedure
In accordance to the research proposal, researcher can analyse the accumulated data by following
both quantitative as well as qualitative data analysis procedure. In order to analyse the data in
qualitative manner, the information, accumulated from existing literature reviews, articles and
journals have to be evaluated and scrutinized by the researcher. On the other hand, by using
16

descriptive statistical tools like mean, median, mode along with standard deviation, the collected
data can be analysed in systematic manner.
17

Reference list
Anderson, F., Pethick, D.W. and Gardner, G.E., 2016. The impact of genetics on retail meat
value in Australian lamb. Meat science, 117, pp.147-157.
Apergis, N., 2014. Can gold prices forecast the Australian dollar movements?. International
Review of Economics & Finance, 29, pp.75-82.
Brown, A.J. and Lawrence, S.A., 2017. STRENGTH OF ORGANISATIONAL
WHISTLEBLOWING PROCESSES–ANALYSIS FROM AUSTRALIA.
Brown, C.A. and Davis, K.T., 2015. The sub-prime crisis down under.
Burtt, D. and Dargusch, P., 2015. The cost-effectiveness of household photovoltaic systems in
reducing greenhouse gas emissions in Australia: linking subsidies with emission
reductions. Applied Energy, 148, pp.439-448.
Di Iorio, A. and Faff, R.W., 2015. The effect of intervaling on the foreign exchange exposure of
Australian stock returns.
Fleming, D.A. and Measham, T.G., 2015. Local economic impacts of an unconventional energy
boom: the coal seam gas industry in Australia. Australian Journal of Agricultural and Resource
Economics, 59(1), pp.78-94.
Fletcher, A.J., 2017. Applying critical realism in qualitative research: methodology meets
method. International Journal of Social Research Methodology, 20(2), pp.181-194.
Gummesson, E., 2017. Case Theory in Business and Management: Reinventing Case Study
Research. Sage.
18

Hambur, J., Cockerell, L., Potter, C., Smith, P. and Wright, M., 2015. Modelling the Australian
Dollar (No. rdp2015-12). Reserve Bank of Australia.
Humphries, B., 2017. Re-thinking social research: anti-discriminatory approaches in research
methodology. Taylor & Francis.
Kim, S.J., 2015. Australian dollar carry trades: time varying probabilities and
determinants. International Review of Financial Analysis, 40, pp.64-75.
Lim, G.C., Nguyen, V.H. and Chua, C.L., 2014. Review of the Australian Economy 2013–14:
The Age of Austerity?. Australian Economic Review, 47(1), pp.1-12.
Manalo, J., Perera, D. and Rees, D.M., 2015. Exchange rate movements and the Australian
economy. Economic Modelling, 47, pp.53-62.
Oliva, H. and MacGill, I., 2014. Value of net‐FiT PV policies for different electricity industry
participants considering demand‐side response. Progress in Photovoltaics: Research and
Applications, 22(7), pp.838-850.
Oliva, S., MacGill, I. and Passey, R., 2014. Estimating the net societal value of distributed
household PV systems. Solar Energy, 100, pp.9-22.
Oliva, S., MacGill, I. and Passey, R., 2016. Assessing the short-term revenue impacts of
residential PV systems on electricity customers, retailers and network service
providers. Renewable and Sustainable Energy Reviews, 54, pp.1494-1505.
Pollack, H.A. and Reuter, P., 2014. Does tougher enforcement make drugs more
expensive?. Addiction, 109(12), pp.1959-1966.
Robinson, T., Nguyen, V.H. and Wang, J., 2017. The Australian Economy in 2016–17: Looking
Beyond the Apartment Construction Boom. Australian Economic Review, 50(1), pp.5-20.
19

Rose, C., 2018. Research methodology. In Supplier Relationships to Family Firms (pp. 81-98).
Springer Gabler, Wiesbaden.
Scollo, M., Bayly, M. and Wakefield, M., 2015. Did the recommended retail price of tobacco
products fall in Australia following the implementation of plain packaging?. Tobacco
control, 24(Suppl 2), pp.ii90-ii93.
Speer, N., Brink, T. and McCully, M., 2015. Changes in the ground beef market and what it
means for cattle producers. The Angus Foundation, St. Joseph, MO.
Sutton-Brady, C., Kamvounias, P. and Taylor, T., 2015. A model of supplier–retailer power
asymmetry in the Australian retail industry. Industrial marketing management, 51, pp.122-130.
Appendices
20

Gantt chart
Choose research area
Preliminary research
Decide research topic
Decide methodology
Submit/present proposal
Finalise methodology
Conduct research
Analyse data
Write up
Submit assignment
Wk9
Wk10
Wk11
Wk6
Wk7
Wk8
Wk24
Wk23
Wk12
Wk13
Wk14
Wk15
Wk16
Wk17
Wk18
Wk19
Wk20
Wk21
Wk22
Research
philosophy
Research
approach
Research
method
Research design Data analysis
positivism inductive quantitative Explanatory Qualitative
Quantitative data
analysis
Table 1: research methodology
(Source: created by author)
21

22