University of Sydney Lecture round 2

Today we once again visited the University of Sydney to be lectured by Geoff Dow and Frank Stilwell. It was very interesting to listen to both their “unconventional” view on economics. It was a long day for two lectures but I feel like both Geoff and Frank were able to feed off of each other to create a good dynamic describing the Australian economy.

Geoff used GDP per capita, the human development index, and government outlays vs. tax receipts to compare Australia to the rest of the world. Per capita GDP is a measure of total final goods and services made with in a country in one year per person. This is not a perfect measure to judge a country by in a world ranking because you can have a high GDP per capita like Singapore but end up having a very low Human Development Index rating. The Human Development Index bases its rating on longevity of life, literacy rates, and education. This is a better basis to rank countries because standard of living is important and is a better reflection of how well countries’ population is living compared to the rest of the world. Finally, government outlays and tax receipts is a good way to compare how much the government spends versus the size of the government. Even though governments are getting smaller expenditures are still increasing and deficit spending is still on the rise. Frank emphasized how the impacts of the economy affect the country. He focused on social, ecological and economic imbalances and their implications. I believe the ideas he brought forward about carbon emissions are paramount because it is something that will be discussed and debated about until things are put into place and after they are in effect within society.

During WWII it was a wartime economy. After the war, in the 1950s, there was an economic boom and industry was expanding and an expansion in infrastructure (the Snowy Mountain scheme). Now it has changed into a large exporter and is enjoying an appreciating dollar. GDP has steadily grown; Australia had had a streak of 30 years of economic growth. Due to the recession it has had a brief lapse but has projected growth for 2010. When it comes to inflation Australia has stayed right around a 3% average which is the goal for the US. Australia’s current account has been negative due to a deficit in all accounts (merchandise trade, services trade, income payable, and transfers). Today Australia mainly exports goods to China, Japan, the Republic of Korea, India, and the United States.

Notre Dame Australia

Today we visited the University of Notre Dame. It was neat seeing that it had ties back to the States and that the States have UND send students over here to study. Education qualifies for a service export, even though students come over and it may seem like an import. It is an export because students take what they learn from Australia abroad. I also found it interesting that UND has multiple campuses set up around Australia but only one in the US. Ad campaigns such as “Where the bloody hell are ya” have had a negative impact due to the title and one of the people starring in it. Another hit or miss thing that has been going on within this industry has been Australian Universities trying to set up universities abroad to attract students to continental universities.

Another negative impact has been the assaults on Indian students. The Indian media has taken the stories, because the assaults happened multiple times and only occurred against Indian students, and blew it way out of proportion. This certainly has a negative impact because a large portion of Indian students will be deterred from studying in Australia. “He also said that a spate of racist attacks on Indian students in Victoria had trashed Australia’s reputation “almost overnight” and caused the number of students coming from India to drop by up to 95 per cent.” This quote from Call to tackle foreign student drop shows the significant impacts of only a few events that wouldn’t make the news in large US cities.

Over the course of our lecture (from Sean) I found out that church and state are not so separate here and that private universities can receive funding from the federal government. This is certainly a major difference between the United States and Australia. This has allowed many small universities (anywhere from Catholic to Muslim) to operate even though they would not be able to without government funding.

Free Weekend in Sydney

Friday night we went to the club called Home. Ended up staying until 3 in the morning. The next day I woke up and went to Manley beach shortly after. In total Carson, Gentry, JD, and Liz went on Saturday. After spending about 2 or 3 hours we watched a volleyball tournament which included the ladies 2000 Olympic team. After that we shopped on a strip between the beach and the wharf (spending about 2 hours looking around). After that Most of us got together and went to Festival First Night. Listening to a couple of bands play and seeing how packed the city was really gave me a perspective on how much this event means to the city. Following the bands we went out to a gay bar where some of us were flirted with. It was a different experience to say the least. Then we went to a regular bar before returning to the apartments.

                Sunday I slept in. It was wonderful. After waking up around noon I went to Paddy’s market with Gentry, Liz, Kalli, Jennifer J., and Leah. I bought a few t-shirts for my family as well as a kangaroo stuffed animal for my girlfriend and a jacket for myself. After I got back I watched some soccer before going to Bondi to pick up the last of the tourist items for my family on this trip. Finally, Gentry, JD, Luke, Carson, and I went to the world’s largest IMAX to watch Tron-Legacy. This is significant to globalization because having an object that is unique and the biggest in the world attracts attention from the public and can also draw tourism because it is unique. That is one of the ways it relates to this course as well (unique objects/buildings drawing tourists towards this destination).

Friday night we went to the club called Home. Ended up staying until 3 in the morning. The next day I woke up and went to Manley beach shortly after. In total Carson, Gentry, JD, and Liz went on Saturday. After spending about 2 or 3 hours we watched a volleyball tournament which included the ladies 2000 Olympic team. After that we shopped on a strip between the beach and the wharf (spending about 2 hours looking around). After that Most of us got together and went to Festival First Night. Listening to a couple of bands play and seeing how packed the city was really gave me a perspective on how much this event means to the city. Following the bands we went out to a gay bar where some of us were flirted with. It was a different experience to say the least. Then we went to a regular bar before returning to the apartments.

                Sunday I slept in. It was wonderful. After waking up around noon I went to Paddy’s market with Gentry, Liz, Kalli, Jennifer J., and Leah. I bought a few t-shirts for my family as well as a kangaroo stuffed animal for my girlfriend and a jacket for myself. After I got back I watched some soccer before going to Bondi to pick up the last of the tourist items for my family on this trip. Finally, Gentry, JD, Luke, Carson, and I went to the world’s largest IMAX to watch Tron-Legacy. This is significant to globalization because having an object that is unique and the biggest in the world attracts attention from the public and can also draw tourism because it is unique. That is one of the ways it relates to this course as well (unique objects/buildings drawing tourists towards this destination).

US consolute and Aussie Fed Reserve

                Monetary policy is controlled by the federal banking system. It is the setting of interest rates by a central bank with the aim of influencing inflation, unemployment, and economic growth. One major difference of the US and Aussie Federal Reserve is that US board members are nominated by the president and then approved by Congress; the Aussie’s board members are members of industry and have a large stake in what the system does. Currently, Australia’s Reserve Bank is instituting a contractionary policy to trying to curb inflation and maintain a 2 to 3 percent level. They are doing this by having higher interest rates (higher than the US). The recession actually helped the economy here because it slowed raising inflation. According to Richard Finlay, our presenter, mining exports have almost tripled, education has more than doubled, and tourism has also steadily increased. A second difference between the two central banking systems is that the Australian board is comprised of 6 external members and 3 internal members.

                US consulate can help people who have lost their passports, get citizenship for babies that are born abroad, and they also help get visas for people. Chris Corkey, our presenter, said that the goals of US-relations with foreign countries are modeled after US-Australian relations.  The FTA is significant because it allows Australia, New Zealand, and the US to trade tariff free and make goods between countries more competitive. It had a big impact on the wine industry because after the agreement was signed Australian wines could now be competitively priced against other wines in the market.

Overall I think that this day was a great educational experience because it isnt everyday that you get to go to presentations by US consolute members and a briefing by a RBA senior economist.

Tourism Australia

               

Tourism plays an integral part in the Australian economy. It contributes 33 billion dollars and employs five hundred thousand workers. Overall tourism contributes 2.6% of Australia’s total GDP. Rachel Crowley emphasized the importance of promoting both foreign and domestic tourism. Opera came to Australia and filmed shows which will help promote tourism as well. Foreign tourists, in 2009, comprised 38% of total revenue while domestic tourists made up 62% of the total revenue for tourism. Over the past decade, Australia’s international competitiveness has not kept pace with global trends and this had translated into a decline in international market share. Most tourists come from the New Zealand, the UK, China, and the US. Tourists tend to go to see the Opera House, Harbor Bridge, the Great Barrier Reef, and some of Australia’s other natural wonders.

A stronger Aussie dollar means that it is more expensive for foreigners to come to Australia. This is because exchange rates will decrease the amount of Australian currency that people from other countries can buy with their own. It could also have adverse affects on other industries such as mining and higher education. Prospective foreign students will find it cheaper to study in the UK or elsewhere seeing that it would be much cheaper for them. As for mining, it could negatively affect exports because it will become more expensive for large importers to buy Australian coal. In theory, if prices got too high and exchange rates differed too much these large importers might search for alternative places to buy coal from.

University of Sydney Lecture

We started today at the University of Sydney. Evan Jones is a very qualified man to speak on this subject it felt like everyone in the room was a little smaller while hearing him speak. In the beginning of the colonies on Australia started out exporting to the UK. The main exports consisted of wool, products from whaling, and sealing. Over time ties with the UK have declined and trade with America has increased. Now the Australia’s major exports include coal, iron ore, and education-related travel services according to the packet that Evan Jones handed out for his lecture. Trade had begun with the UK but now has increased to include Japan, USA, and China. Immigration originally began with convicts and other British people and slowly has changed to Asian peoples as well as people coming for work visas immigrating to Australia.  Australia was a country grown out of imperialism, Great Britain extending power over Australia’s land and people.

                During WWII it was a wartime economy. After the war, in the 1950s, there was an economic boom and industry was expanding and an expansion in infrastructure (the Snowy Mountain scheme). Now it has changed into a large exporter and is enjoying an appreciating dollar. GDP has steadily grown; Australia had had a streak of 30 years of economic growth. Due to the recession it has had a brief lapse but has projected growth for 2010. When it comes to inflation Australia has stayed right around a 3% average which is the goal for the US. Australia’s current account has been negative due to a deficit in all accounts (merchandise trade, services trade, income payable, and transfers). Today Australia mainly exports goods to China, Japan, the Republic of Korea, India, and the United States.

Power plant and Port Waratah Coal Services

                Mcquarie Generation Power Station is important to the Australian economy because it provides power from the Hunter Valley all the way down to Tasmania. This is a large tract of land for just one power station to be providing power to. The station is comparable to the ones being built in China. It was also interesting that coal comes in by conveyors via Hunter Valley mines.

                Port Waratah Coal Services makes up a large part of the Australian economy. It has provided jobs for many people. It might seem like a contradictory statement seeing most things are animated but just step back and think about the process. Coal miners are employed at the mines, then from the mines it goes onto a train, then it ends up at the port, and finally it ends getting loaded on the boat and shipped out of the country. This chain of movement puts many people to work. It is also the largest coal exporting port in the world. As Brian and I mentioned in our presentations it can load 5 ships at a time and it has many plans for adding a fourth terminal at Kooragang which will allow it to load 6 ships at a time. This is why it plays such a significant role in the global economy (most efficient coal exporting port in the world).

                Its contradictory nature is unavoidable. Coal is such a large part of the economy downsizing it would be detrimental to the entire economy. Also the demand for coal is so high that ports in Newcastle are making large expansions to accommodate demand now as well in the future. But coal is a fossil fuel and other countries are burning to create power releasing more CO₂ changing Australia’s climate even more.

                As a member of the mining group I will definitely incorporate some of the presentation that was given to us at PWCS by Brian. Most likely the logistic display that was used as well as include some numbers that were given of the amounts of coal being loaded onto the ships and how many ships they have traveling through their port annually.

Wineries

Tempus Two has an advantage of being newer architecture and creating a more “hip” environment. Woody was a great “presenter” when he brought out the wines, he was specific and really knew his stuff. I could definitely tell that Tempus Two has more of a tourist aspect to offer. By this I mean that it is designed to get more people on their front door and attract them to wine tasting rather than showing the off how the wine is made.

Tyrrell’s on the other hand was certainly more old fashion. Meaning the tour is more about the wine and how it gets from the vine to the bottle. Personally, I expected more of this type of tour and certainly appreciated it more than Tempus Two’s tour. Scott (in my eyes) was much more interesting to listen to and was more than willing to cater our wine tasting to what everyone wanted to try rather than Tempus Two’s set tasting list. I also came to appreciate the fact the Tyrrell’s has been in the business for much longer giving it more time to learn and pay attention to market trends.

Although the wine industry is once again continuing to grow many growers may begin planting large vineyards as they did in the 90s but, “only the foolhardy would take this as a chance to make a killing, and start planting again,” The Economist.

Globalization has allowed much of the Hunter Valley wineries to stay in business. It has allowed wineries to exist instead of being torn up and overtaken by the coal industry. Climate change will also affect these wineries because it affects what types of grapes you can grow and what type of wines can be produced. Changing tastes play a should play a significant role in what is produced; but, in some cases it doesn’t because wineries are so proud of the products they have produced that are best sellers and win awards they don’t see need to change with a constantly changing marketplace.  

New Year's Eve

It was amazing!!! The sheer number of people who came to Sydney to watch the fireworks brought enormous amounts of income to the government. It draws common people from all over the world as well as wealthy celebrities throwing their New Year’s party. The fireworks were spectacular and innovative (each year a new event is introduced). The music set up was also a good way to draw in people and get them to spend money. I know I danced for about three hours until the fireworks started and many others were doing the same. It was probably a good way to keep people near the shore and have a good time so they might come back in the future. Personally, it was the best time I have ever had in my entire life. This event happens every year because it brings in thousands of tourists which create tax revenue for the government. All sectors of the economy are affected it includes: fast food, fine dining, transit, and other tourist destinations such as the Sydney Harbor Bridge climb and Sydney Opera House tours. Essentially, a 7 million dollar investment yields 150 million dollars which is one of the best returns in the world.

                I would like to ask an expert how they incorporate new things into the New Years Eve celebration to attract a larger crowd. I would also like to know where the most money is raised, whether it is from the food sector, transportation, or accommodations. The last thing I would like to ask is how the government works with corporations to put on these spectacular events.

                This would help the tourist group because the Australian Government receives a large portion of their revenue from this event. It also helps them because they have gotten to see this event and experience everything about this event had to offer.