International Economics

WEEK 112th February 2013

INTRODUCTION

Course 17832 Advanced Diploma Management

WELCOME

Teacher: Peter Sciclunapeter.scicluna1@tafensw.edu.au0408 418 995

Textbook:

2

ICE BREAKER!!!

Thought-starter

• What is the closest living relative today, of the TYRANNOSAURUS REX?

HINT:

ANSWER:Source: USA Todayhttp://www.usatoday.com/tech/science/2008-04-24-trex-chicken-dna_N.htm

Thought-starter

• What is this? – It was caught in Karachi, Pakistan. 8/2/2012– Weighs 7 Tonne, 10- metres long– These can grow longer than 12 metres and can weigh up to 20 tonnes

HINT:

• It is the biggest living fish alive today.

ANSWER

• Whale shark

• IS IT A WHALE OR A SHARK?

Another Q

• What is the largest known animal to have EVER existed?

ANSWER

• BLUE WHALE (not a fish, a marine mammal)– 30 metres– 180 tonne +

Also…

Lion’s Mane Jellyfish

• 6 metres long with tentacles over 50m

• Has been living in Arctic waters for over 650 million years (since BEFORE the dinosaurs)

• One of the oldest living species in the world.

HOUSEKEEPING

• Toilets

• Exits / Evac

• Air / Heat

• Breaks

• Roll sheet

• Notes– EMAIL

• Issues?

• Readings

• Logins– WIFI

InternationalPassword: danish123

– InternetUser: cseight.swsldPwd: learning105

• Safety in Sydney– TIPS– BE PARANOID

14

Names

• Write names on folded piece of paper

Orientation

• Guidelines– RIGHTS

• Safety• Harassment

– ASSESSMENTS• SAGs• Late submittal• Extensions• Sick• Resit/resubmit policy• Report format / Image & presentation• Academic writing

– Attendance

– Plagiarism

• Student Association

• Library

• Text books / book shop

• RPL

• Breaks

EXPECTATIONS

• RESPECT– Courtesy

• Respect opinions of others

• Speaking in turn– DO NOT SPEAK WHEN

OTHERS ARE SPEAKING

• Attendance

• ON TIME

• PARTICIPATION– Contribute– Ask Q’s– Comment

• NO Mobile phones

• NO Food

UNITS

OUTCOMES

19

By the end of this session you will:

• Understand what is expected of you in this subject

• Be introduced to the course content

Session Guide

• SAGs

INTRODUCTION

My Background

So why am I here?

And now at TAFE!

Mr. Margaritis

The path ahead for YOU

A recent study estimates that

Today’s learner will have 10-14 jobs...

by the time they are 38

That’s a new job/role every 1.4 years for YOUacross multiple employers

Easily achievable by any of you seated here today,

In fact most of you should expect to have

excelled in your starting CAREER,

and commenced in a NEW CAREER by the time you hit your mid 30s.

Enough About Me...

• Name?

• Answer two (2) of these only:1. Best day in your life?2. Something that not many people know about you is…3. What is the most interesting place you have ever

travelled? Why4. What is your worst injury ever?5. Favourite TV show?6. Favourite chocolate bar?7. Furthest travelled from Sydney?8. Name a topic you feel very passionate about

More About You

• Name (again)

• Background– Prior experience– Studies to date

• What do you hope to get out of this course?

• What do you want to do when you finish?

WHAT TYPE OF LEARNER ARE YOU?ACTIVITY

What is Learning?

• Learning as a Process:– An event when an individual or group of

individuals experience a change in, knowledge, skills or attitude

• Learning as an Outcome:– A change in knowledge, skills or attitude

experienced by an individual or group

VAK - Visual

• Need to see what is going on• Preferred learning methods:

– Activity sheets, handouts, learner guides, manuals

– Brochures, charts, graphs & posters

– Demonstrations– Visual displays & diagrams

VAK - Auditory

• Learn by Listening• Preferred learning methods

– CDs and audio tapes– Discussions– Explanations, lectures,

stores– Q&A techniques

VAK - Kinaesthetic

• Learn by Doing• Preferred learning methods:

– Discussions– Peer support– Practical exercises– Problem solving & discovery

activities– Role plays

INTRO TO A NEW MARKET:AUSTRALIA

International Economics

WELCOME!

YOU ARE HERE

AUSTRALIAAn overview of

AUSTRALIA

Did You Know...

Did You Know...

Brief Timeline of Australia (with China)

Human habitation of Australia commenced over 40,000 years ago, by the indigenous Australians (aboriginals)

1606 discovered by Dutch explorers

1770 claimed by the British

1788 British settlement (penal colony)

1901 Federation

Evidence of earliest human in China is 67,000 years ago But hominid fossils date back

millions of years

Late Ming Dynasty

QING Dynasty Putuo Zongcheng Temple is

completed

Siku Quanshu (Imperial collection of Four) encyclopedia is completed

Xinchou Treaty / Boxer protocol

AUSTRALIA CHINA

Population density

Immigration

Spoken language

Religion

Australian Constitution

Australian Government

Australian Government

Overview of the Australian Political System

WESTMINSTER SYSTEM OF

GOVERNMENT

PARLIAMENT

SenateHouse of

Representatives

JUDICIARYinterpret &

enforcePolice, Courts,

Prisons

EXECUTIVE

give the royal assent

Governor General

PARLIAMENTARY BILL

ACT OF PARLIAMENT

COMMONWEALTH

Overview of the Australian Political System

WESTMINSTER SYSTEM OF

GOVERNMENT

PARLIAMENT

Legislative CouncilLegislative Assembly

JUDICIARYinterpret &

enforcePolice, Courts,

Prisons

EXECUTIVE

give the royal assentGovernor

PARLIAMENTARY BILL

ACT OF PARLIAMENT

STATE (NSW)

Activity• What is Australia’s biggest export?

• Who is Australia’s biggest customer? – What country buys most of our imports?

Exports - COAL

EXPORTS

Deadly Creatures!Table activityAs a team:1. Name each of these

creatures2. Guess which one is

the deadliest– (causes most deaths

in Australia each year)?

Saltwater Crocodile

Box Jellyfish

Blue Ring Octopus Brown SnakeGreat White Shark

Deadliest?

Box Jellyfish

Did You Know...

AGENDA• Intro• Geography• Government

Australia

• Structure• Qualifications Framework• Quality Assurance• Pathways

Australian Education

System• Stakeholders• National Training Information Services• Courses and Qualifications

VET System

Overview

• Q&AQuestions

• Overview of the South Western Sydney InstituteSWSI

EDUCATION IN AUSTRALIA

Today‘s Learner

A recent study estimates that

Today’s learner will have 10-14 jobs...

by the time they are 38

That’s a new job/role every 1.4 yearsacross multiple employers

Most learners will have excelled in their starting CAREER, and commenced a NEW CAREER

by the time they hit their mid 30s.

Schools Vocational Education

and Training (VET) sector

职业教育和培训部

Higher Education

sector

大学

Australian Education System澳大利亚教育体系

Schools sector

Schools Sector

Primary• Age 5 to 12• 7 years

Junior Secondary• Ages 12 to 16• 4 years• Year 10

Certificate

Senior Secondary• Ages 16 to 18• 2 years• Year 12

Certificate

Vocational Education and Training Sector (VET)职业教育和培训部 (VET)

Traineeships & apprenticeships TAFE RTOs

Vocational Education and Training Sector (VET)职业教育和培训部 (VET)

Traineeships & apprenticeships TAFE RTOs

Vocational Education and Training Sector (VET)职业教育和培训部 (VET)

Traineeships & apprenticeships TAFE RTOs

Higher Education sector 大学

Schools Sector Accreditation

• Senior Secondary Certificate of

Education

Vocational Education and Training Sector Accreditation

• Vocational Graduate Diploma

• Vocational Graduate Certificate

• Advanced Diploma

• Diploma

• Certificate IV

• Certificate III

• Certificate II

• Certificate I

Higher Education Sector Accreditation

• Doctoral Degree

• Masters Degree

• Graduate Diploma

• Graduate Certificate

• Bachelor Degree

• Associate Degree, Adv Dip

• Diploma

Australian Qualifications Framework

Quality Assurance

Schools

• State Government

• ACACA

Vocational Education and Training

• AQTF 2007

Higher education

• AUQA

International Students

• Education Services for Overseas Students Act 2000

Cross-sector Qualification Linkages

Pathways

AGENDA• Intro• Geography• Government

Australia

• Structure• Qualifications Framework• Quality Assurance• Pathways

Australian Education

System• Stakeholders• National Training Information Services• Courses and Qualifications

VET System

Overview

• Q&AQuestions

• Overview of the South Western Sydney InstituteSWSI

Stakeholders in the Australian VET System

Courses and Qualifications

www.training.gov.au

AGENDA• Intro• Geography• Government

Australia

• Structure• Qualifications Framework• Quality Assurance• Pathways

Australian Education

System• Stakeholders• National Training Information Services• Courses and Qualifications

VET System

Overview

• Q&AQuestions

• Overview of the South Western Sydney InstituteSWSI

Questions?

International Economics

Lesson 1 Introduction

IntroductionsMake a short, 1 minute, verbal presentation (you can stay in your seat for this) and answer the following questions:– What is what is your name?– Why did you come to Australia? (all of the reasons)– How do you think Australia will be different from your home in

Denmark?– What do you hope to get out of your time here? – Are you fearful of anything in your trip? (you don’t need to answer this

if you don’t want to)– What will you miss most about home during your stay? – What do you plan to do after leaving your current school? (e.g.

University, work, travel, world domination etc.)

You have 5 minutes to prepare

The course, of course!• You are required to undertake some reading and/or

homework every week.• 3 types of assessment:

– A short quiz every week (except week 1 and week 5)– A mid-term test (week 5)– A research report on international trade comparing Denmark,

Australia and one of Denmark’s major trading partners (due week 9)

• Results for the assessments will be available the following week.

• Make sure you bring your course outline, your textbook and notes from previous weeks with you to each class

What is trade?• Trade might be defined as the buying and

selling, or exchange, of goods, services or commodities between 2 or more interested parties.

• Trade can be domestic (within a country), OR international (between countries).

• International trade is the focus for your course in Australia

Exports and Imports• What are exports?• What are imports?• What is “balance of trade” otherwise

known as?

Some definitions for trade• Imports – the goods and services one country brings in

(i.e. buys) from another country or countries• Exports – the goods and services one country sends

out (i.e. sells) from another country or countries• Imports and exports are usually measured in value –

DKK, USD, AUD etc. Comparative figures worldwide are often measured in USD (in the EU it is, of course, the Euro)

• The difference in value between imports and exports is a countries “balance of trade” or “net exports” (NX). We will discuss this later in the course when we look at the concept of “balance of payments”)

How does trade relate to other economic principles?• Trade is a fundamental part of

economics.• Economics is (as you know) about the

study of “how…resources are allocated to fulfil(l) the infinite needs of consumers” (Blink and Dorton, 2011, p.3)

• The way we get the resources and end product to consumers is by trading, both domestically and internationally.

Specifically some of the key concepts you need to apply are:

– Scarcity– The economic problem– Opportunity cost– Production possibilities

(and the curve)– Supply and Demand (of

course!)– Consumption– Investment– Fiscal policy (Government)– Unemployment/

employment– Inflation/prices

– Markets – The business/economic

cycle–  Productivity (especially

labour)– Labour and capital

intensivity– GDP – Economic growth– Globalisation– Economies of scale– Price discrimination– Market leakages and

injections

Why trade then?• Lower prices• Greater choices (consumption and investment)• Better resource allocation or ability to access

resources not available in the country• Specialisation and economies of scale• Increased competition• More efficient allocation of resources• Source of foreign exchange

Blink and Dorton 2011:260-261

It is time to participate in some free, voluntary trade!• You are a country. Come up with a name for yourself!• Decide what you focus will be as a country i.e. your

trade in stock. Minerals, IP, IT/IS, consumer goods, labour, manufacturing steel components or auto parts.

• You will each select 3 x “goods” to trade with selected countries ( I will select the countries you will trade with)

• There will be 2 rounds of trade. I will explain each round to you before each round starts.

• We will have a discussion at the end of each round.

It is time to participate in some free, voluntary trade!• At the end of the 2 rounds you will decide:

– What you will consume domestically (i.e. keep for yourself)– What you continue to trade with other countries (i.e. swap with

someone else)– What you decide to grant as foreign aid to poorer countries

(what you give away because you feel sorry for your poor friends who were left with worthless “goods”)

And now for some research!• In order to truly understand trade, you need to start

looking at what countries actually do in their trading and who they trade with. Research and answer the following questions:– Which countries are the top 5 trading partners for Denmark for

imports AND exports of goods (do both)?– What was the approximate value (in DKK) of all exports and

imports undertaken by Denmark on a monthly basis for January to November 2011? What is the approximate proportion of this that the EU represents?

– What are the top 5 import and export sub groups? (don’t use SITC groups but the sub-groups e.g. “meat and meat production”)

• Please undertake your research in English from Statistics Denmark at www.statbank.dk

Homework for next week

• Finish your internet research if you haven't already done so

• Read chapter 21 of Blink and Dorton (2011)

• Do “Student workpoint “ 21.1(p. 261)• You won’t be handing these in but we will

review the homework every week.

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Thank You!

• Coming weeks– Ch 21 – Why Do Countries Trade?