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Issue of Higher Cost of Production | Article

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Added on  2020-02-03

Issue of Higher Cost of Production | Article

   Added on 2020-02-03

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NEWS PAPERANALYSIS
Issue of Higher Cost of Production | Article_1
TABLE OF CONTENTSPART 1............................................................................................................................................3PART 2............................................................................................................................................3REFERENCES................................................................................................................................8
Issue of Higher Cost of Production | Article_2
PART 1The cost of production in manufacturing in Australia is highlighted in this article whichis done written by Sean Langcake. Basically Australia is a country where manufacturingbusiness is so broad in market. The article is all about the cost of production in manufacturingand their correlation with the other sectors. In Australia the manufacturing is very importantbusiness factor because their conditions are quite compatible for the manufacturing of suchgoods. The cost of production in that time goes so high when the commodity price is rising. Thesupply of such goods which are manufactured from the sources which consume more time andlow cost is done to the abroad(Vernon, 1966). The Australian dollar got appreciated as thecommodity price is rising in the Australian market. There are so many manufacturers who areproducing goods from past decade. The exchange rate which is depreciated recently improve thecompetition between the producers of Australia and the output of manufactured products and theinvestments of investors can be recovered from very limited resources or compact evidences.The condition of the manufacturing business in Australia is getting down day by day due to thehigher production cost. PART 2The issue which is highlighted in this article is mainly based on the higher cost ofproduction and that is being more complicated to resolve because the Australian dollar price isgetting so high and the commodity price is also rising. Over the past 30 years the sector ofmanufacturing in Australia is getting declined as a share of the total economy. The economy ofthe Australia has very small share of that manufacturing business. The lower cost economies hassupplied so the competition is so strong which is faced by the manufacturers of domestic area.In Asia, china have the higher demand of such commodities so the Australian dollar isrising because the trade has also increased due to the strong demand from Asia. There is onemore factor that can make impact on the manufacturers that is exchange rate as if the exchangegot high then the competition and its pressure on the manufacturer will be automaticallyincreased. On the other hand this article has the focus on the Reserve Bank's business liaisonprogram. The program is to highlight the major challenges which are faced in the manufacturingbusiness and it tells about the responses of those manufacturers to those challenges.
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