Differences Between Australia And Japan

Submitted By keira98
Words: 2454
Pages: 10
Open Document
Australia and Japan are two exceptionally advanced and industrialised mixed market economies, meaning their economies are mostly run by private market forces, but there is also substantial government intervention in economic life. Australia and Japan are closely linked and have a very strong economic relationship within the world economy that has evolved over decades. These two economies provide for an interesting comparison, as they are similar in many aspects, however they do have their various significant differences. This report seeks to compare and contrast the aspects of both Japan and Australia, which make up their economies, and to provide the close analysis of their economic characteristics. The economic aspects examined within this paper include: economic growth, main industries, trade, employment and unemployment, distribution of income, quality of life, environmental sustainability and the role of government.
General Facts

Australia
Japan
Geography
Island located just below the equator in the South Pacific region
Archipelago located in Asia to the east of North Korea and South Korea
Size
7,741,200 km2
377,194 km2
Population
23.7 million
127.3 million
Population density (per km2)
3
350.66
Currency
Australian dollar (AU$)
Japanese yen (¥)
Type of Economy
Mixed/Free market economy
Mixed/Free market economy Economic Growth
Economic growth refers to an economy’s capability of producing goods and services. GDP is the measure of a nation’s total output, and is used as the main indicator for economic growth. In 2013, Japan’s GDP measured US$4.901 trillion and Australia’s measured US $1.56 trillion. Japan has a much larger economy than Australia in terms of GDP, which is most likely due to their significantly larger population and stronger labour force. Although Japan has the larger total GDP, Australia has a significantly larger GDP per capita, which is due to their much smaller population. Australia’s economic growth rate between the years 2010-2013 ranged from 2-4%, according to the World Bank, and Japan’s rate of economic growth ranged from -0.5-4.7%. Australia
Japan
GDP
US$4.901 trillion (2013)
$1.56 trillion (2013)
GDP per capita
US$67,458.36
US$38,633.71

The rates of economic growth of both Japan and Australia during the past few years are shown in the graph below. Australia’s rates of economic growth throughout the years remain relatively steady in comparison to Japan’s. Contrastingly, Japan’s economic growth rates do not tend to remain steady and often rise and fall dramatically in short periods of time. Australia’s economic growth is quite consistent, in the sense that they tend to have less dramatic changes in rates of economic growth in comparison to Japan.

Inflation generally refers to the rise of prices of consumer goods and services in the market, and the decline of the purchasing value of money. CPI (consumer price index) is the measure used to calculate inflation in the economy. CPI is determined by calculating the percentage change in the average prices of common consumer goods and services. The changes in the CPI of Australia and Japan throughout the years is displayed on the graph below, relative to the 2010 statistics, which are used as the 100%. In 2013, Australia’s CPI measured 107.8%, whereas Japan’s measured 100.0%. Australia’s CPI had risen by 7.8% in three years, whereas Japan remained where they were three years ago. From the graph below, it can be observed that Australia’s CPI continues to increase quite rapidly, which is in contrast with Japan, whose CPI is quite stable and experiences very small change in rises and falls. It can be predicted that Australia’s CPI will continue to rise, and Japan’s is expected to rise slightly due to the government reforms that were aimed to increase inflation.

Both the Australian and Japanese Governments have introduced various policies and stimulus packages for the purpose
Show More

Related Documents: Differences Between Australia And Japan

Financial Crises, Slumps, Causes And Effects, History And Future

effect, some had a major effect. But they all clearly show that the financial system is subject to fluctuation over years, and is more vulnerable than we think. Financial expansions and contractions affected the wider economy through their impact on the fiscal situation of the economies, the production and purchase power and other phases. (Financial Sector Ups and Downs and the Real Sector: Up by the Stairs and Down by the Parachute – May 2012) HISTORIC OVERVIEW; causes and effects: The world has…

Words 1996 - Pages 8

Sweet Osmanthus Sauce Case Study

Introduction Sweet Osmanthus Sauce Osmanthus fragrans is a native species of Asia, distribute from southern China to Taiwan and Japan, and also includes Indonesia and Thailand. The flowers are white and yellow with a strong fragrance. Sweet Osmanthus Sauce is made from the fresh flower with honey and a dash of salt. It is widely using in Chinese traditional food making, such as rice cake and biscuits. Osmanthus fragrans also have medicinal value, the aromatic substances contained in it could relieve…

Words 2880 - Pages 12

Essay about Case Analysis of Dell Computers

On April 22, 2003 Page 2 2 INDUSTRY ANALYSIS ..............................................................................................................................3 CURRENT STATUS ....................................................................................................................................6 C URRENT S ITUATION ..................................................................................................................................6 Performance.....…

Words 12003 - Pages 49