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The Direction of Relation and Power of Nations

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Added on  2020-04-01

The Direction of Relation and Power of Nations

   Added on 2020-04-01

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Running head: ECONOMICSEconomicsName of the StudentName of the UniversityAuthor note
The Direction of Relation and Power of Nations_1
1ECONOMICSTable of ContentsIntroduction......................................................................................................................................2Relation between USA and Australia..............................................................................................3Bilateral Economic Relation........................................................................................................3A close look over the direction of relation and power of nations....................................................4Critical Analysis..............................................................................................................................5Exchange rate and trade balance..................................................................................................7Foreign investment and movement of interest rate....................................................................10Great Recession in USA and its impact.....................................................................................13Conclusion.....................................................................................................................................15References......................................................................................................................................16
The Direction of Relation and Power of Nations_2
2ECONOMICSIntroduction The aspect of globalization increases the intensity of trade relation on internationalplatform. No country is self-sufficient. Countries engage in trade relation to import goods andservices, producing which is comparatively disadvantageous for them. Countries export goods inwhich they enjoy comparative advantage and can produce in excess of their domestic demand.In such trade relations, the economies having trade relation become dependent on each other.Shocks in export or import demand affect the countries engages in trade. The advent of advancedtechnology increases mobility of goods and services and factors of production as well. Therefore,the definition and spectrum of trade have changed. Now a day, countries establish trade relation with more than one nation with differentweight given on trade basket. New trade avenues have been opened up. In modern world,Countries are being interconnected in an intensive way. This increases both the advantages andcomplexity of trade policies designed in a country. Any change in the existing trade policy isassociated with a change in trade scenario and hence affects its trading partners. Several factorsaffect the volume. Exchange rate is one crucial factor determining the term of trade. The reportcritically evaluates trade relation between Australia and United States. In trade relation between a large and a comparatively small country, small country alwaysdominated and affected more by the policy change in the large country. The paper criticallyreviewed the impact of real GDP in USA on Australian economy because of their tradingrelation and size of USA economy is bigger than Australian economy. Dynamic movement ofboth the economy from 1985 to recent time is analyzed.
The Direction of Relation and Power of Nations_3
3ECONOMICS
The Direction of Relation and Power of Nations_4

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