effects of changes in TOT (1 Viewer)

[jonnathann]

Yes well I kno Aust's is rising with commodity demands etc. So what's the effect of the increase in TOT on the economy, and decrease?

 

[HayleeKate]

Terms of trade reflect changes in exports vs imports, so the most obvious affect is when youve got heaps of imports and not so many exports.. CAD goes through the roof, hence servicing requirements ^ too. Thats just the most obvious, i guess you could say its an inverse relationship maybe.. TOT down, CAD up....? is that too loose a link?
If we're importing heaps of shit, rather than making it ourselves... then our industries arent being developed, our labours not being used,so that stinks.

 

[i remember 5ive]

on another note, our CAD is in heaps of trouble at the moment. Do some research find out what Alan Kohler and Ross Gittins have had to say about it.

I don't know about you guys, but our teacher would always encourage us encompass the latest economic issues from newspaper clippings in our essays to give them timeliness, instead of the textbook all the time.

Also, if you're struggling it gives you something to woffle on with and gets some sort of marks.