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In: Business and Management

Submitted By sowmya1690
Words 450
Pages 2
reasons can be that rising terms of trade due to record high commodity prices, high levels of business profits lifting share market prices and with a relatively high interest rate. (Edge, R., 2006)

All these factors have increased the demand for the Australian dollar. But situations can not be sustained for ever; it is believed that commodity prices at least will continue to rise for the next two years. Interest rates have risen recently but may not rise again this year. The recent rate rises in Australia and rising global oil prices may reduce demand and slow business profits at least in non-resource industries.

3.2 Threat to Australia Balance of Paymentsreasons can be that rising terms of trade due to record high commodity prices, high levels of business profits lifting share market prices and with a relatively high interest rate. (Edge, R., 2006)

All these factors have increased the demand for the Australian dollar. But situations can not be sustained for ever; it is believed that commodity prices at least will continue to rise for the next two years. Interest rates have risen recently but may not rise again this year. The recent rate rises in Australia and rising global oil prices may reduce demand and slow business profits at least in non-resource industries.

3.2 Threat to Australia Balance of Payments

reasons can be that rising terms of trade due to record high commodity prices, high levels of business profits lifting share market prices and with a relatively high interest rate. (Edge, R., 2006)

All these factors have increased the demand for the Australian dollar. But situations can not be sustained for ever; it is believed that commodity prices at least will continue to rise for the next two years. Interest rates have risen recently but may not rise again this year. The recent rate rises in Australia and rising global oil prices may reduce…...

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