Economics assignment 代写:澳元的贬值

QUESTION 1 

Suppose that you work for an Australian-based LNG producer. What are the main implications of the article for your business?

The article mainly discusses the following issues. The producing cost of LNG in Australia has surged in the past few years even the giant company has the same problems in this industry. The cost includes the high labor cost, the contradiction with the Greens etc. There are mainly three implications of this article for my business as an Australian-based LNG producer as follow. 

The first thing is that calling for the government to manage the high producing cost in Australia with other fellow companies. Cooperating with other firms to reduce the producing cost and increase the profit. This is useful since Australia government has noticed this issue. Secondly, just like the article mentions, some LNG firms are seeking other places to produce the LNG across the world. This is the same for my business if the Australia government fails to manage the high producing cost. The third one is that when producing the LNG, our company should address its corporate social responsibility in order to reduce the contradiction with the Greens.

In conclusion, the implication of the article is that the firm should find ways to deal with the issues. As a LNG firm, the main issue is the high producing cost in Australia.

 

QUESTION 2 

In the last two months, the value of the Australian dollar has decreased in international currency markets. What are the main implications of this decrease for a company such as yours? Explain your answer using the relevant macroeconomic tools and models.

As people know the exchange rate of AUD will influence the economic activities greatly in one country especially for the exporters and importers. As a company which is an Australian-based LNG producer and exports the LNG to foreign markets, the devaluation of AUD will definite influence my business. The following essay will discuss the influence of decreased AUD on my business in the short term with some relevant macroeconomic tools and models. 

To state this issue clearly, it applies the cures in the lectures. When AUD depreciates and the USD price of LNG remains the same, the export price of LNG will be cheaper than before and thus the demand of LNG in foreign market will usually increase. That is to say, the price of LNG will relatively cheaper for the buyers in other country which will increase the sales of my business. Accordingly, the importing price of goods from overseas market will be higher which will reduce the amount of importing. Then NX will increase. Thus, AD will shift to the right in Picture 1 and reach the new equilibrium in P2.  In the new equilibrium point, CPI arises higher which will increase the C and I. Finally, LNG will increase its supply of LNG to meet the increasing demands in home and abroad. 

 

Picture 1

In conclusion, the depreciation of AUD will be good for my business in the short term because it will gain price advantage when the USD price remains the same as before. The price advantage of my business will increase the sales amount in foreign market.