Economics for Business: Analysis of Wheat Production in Australia

Running head: ECONOMICS FOR BUSINESS
Economics for Business
Name of the Student:
Name of the University:
Author’s Note:

1
ECONOMICS FOR BUSINESS
Table of Contents
Introduction......................................................................................................................................2
Review of the Article.......................................................................................................................2
Application of Economic Concepts.................................................................................................3
Recommendations............................................................................................................................4
Conclusion.......................................................................................................................................5
Reference.........................................................................................................................................6

2
ECONOMICS FOR BUSINESS
Introduction
The main purpose of this assignment is to analyze an newspaper article from an economic
point of view while at the same time using economic concepts and application of theory. The
assignment will be focusing on agriculture produce in Australia which is exported (Lawrence,
Richards & Lyons, 2013). Australia is known as developing nation in which the economy is
mainly engaged in mining activities, services industry and a part on the manufacturing industry.
However, it is to be noted that Australia also has a strong agriculture base such contributes to the
GDP of the country quite significantly (Kubiszewski et al., 2013). Australia has a good amount
of wheat production which is mainly a winter crop of the country. The sowing for the same starts
in autumn and the harvesting takes place depending upon the circumstances. The report will be
providing an analysis of the situation utilizing economic concepts and identifying any problems.
Lastly the report will be ending with recommendations and conclusion.
Review of the Article
The article which is selected was published in Sydney Morning Herald with the headlines
as ‘Soaring Wheat Production to Fuel GDP growth in 2017”. The article states the fact that the
production of wheat was immense during the last year. As per the article, it is not gas products
and commodity exports which are keeping the exports of the company up but also the agriculture
is also catching up. The article states that during the year a record wheat production was
expected which would contribute around half a per cent worth of growth to economic growth of
the country. The article further states that even though the excess wheat surplus in wheat
production will result in fall in the prices of wheat in world economy (Fleurbaey & Blanchet,
2013). The price has fallen from $US9.00 in 2012 for a bushel to about $US4.41 a Bushel in
2017. However, the sheer amount of wheat production will be enough to make a significant