Impact of Several Changes on Australian
Added on 2020-03-23
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Running head: ECONOMICS ASSIGNMENTAUSTRALIAN IRON ORE MINING INDUSTRYName of student:Name of University:Authors note:
ECONOMICS ASSIGNMENT2Table of ContentsIntroduction................................................................................................................................3Discussion..................................................................................................................................3Contribution of mining industry to GDP...............................................................................4Governments role in iron ore mining industry.......................................................................7Impact of several changes on Australian iron ore mining industry.......................................9All changes occur together in a year....................................................................................11Conclusion................................................................................................................................13References................................................................................................................................15
ECONOMICS ASSIGNMENT3IntroductionAustralian economy is one of the largest economies in the world. From GDP’s pointof view country is in a stable position, here various industries contributed various portions toGDP. Country’s mining industry is identified as one of largest industry, however over theyears different results has been obtained regarding the mining industry. The main aim of thisreport is to explore the iron ore mining industry’s contribution to GDP level with a view todifferent changes that affected country, how these changes hampered iron ore miningindustry and in turn how iron ore mining industry hampered economy’s growth level is amatter of concern of this report.DiscussionAustralian economy is a developed economy with one of the largest mixed marketeconomy. It is also considered as one of the wealthiest nation across the globe. Australia alsostands in the eighth position with respect to the estimated value of natural resources. Thevalue of natural resources is high inside country because of its geographical location.According to World Bank data, GDP of the country over the years has remained in astable position. Poverty rate estimated within country is also low. OECD report shows thatAustralia over the years has grown at a rate of 3.6 percent in the past fifteen years. Countryintroduced indirect tax system in 2000 and it mainly included goods and service tax. Revenuewas mainly generated from personal and company income tax. From the labor force scenarioof the country it can be observed that the number of underemployed is high, evenunemployment rate over the years increased and it mainly constitutes youth unemploymentand this of unemployment is a major problem faced by the economy because the country’sadvancement of technology, the aging population increased. From inflation rate point of view
ECONOMICS ASSIGNMENT4it can be seen that country’s inflation level over the past years has been quite high. Fromexport bundle of the country it is seen that it is mainly exporter of agricultural products,energy in the form of liquefied natural gas and coal and minerals. Trading partners of thecountry consists of Japan, US, South Korea, China and New Zealand. Contribution of mining industry to GDPIron ore mining industry of the country is the most significant industry of Australiaand the main reason behind this is the presence of natural resources inside country. Industrycontributed to the highest level of economic growth since 1840s. Mining industry as a wholethus had major influence on Australia’s performance. Currently this industry contributesaround 8.5 percent to Australian GDP. Thus this industry can be regarded as the primaryindustry. Various kinds of ores and minerals are mined throughout the country. This industrygenerates around $138 billion per year and this result is half of total goods and services. Iron ore mining industry approximately employs 200,000 people and in this way itbenefit people indirectly, and thus creates economic and social wellbeing welfare. Industryalso it also creates high skilled and high paid jobs for citizens of the country; hence it helps tobuild careers and ensures more youth population. Regional economic activity of the countryis also supported by this industry.Thus iron ore mining offers huge scale employment opportunities to citizens and hasbeen at the front position of Australia. Taxes and royalties from iron ore industry are mainsource of income for the populations and governments, with $25 billion in taxes and royaltiesacknowledged in the 2013-2014 financial year.With respect to export of the industry a rapid growth is being observed within theindustry. Total production of the iron ore industry increased by 2% between 2006-07 and2007-08, and doubled between 1987-88 and 2007-08. Past 10 financial years shows , the
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