economic indicators

Economics Assignment Section A Question 1 i) THE AUSTRALIAN DOLLAR - It is an economic indicator because the value of the Australian dollar determines how it is performing on a global basis. Most currencies around the world are floated; many financial organisations (eg RBA) have foreign exchange operations and trade (buy/sell) currencies. These organisations trade currencies to make a profit. So generally a nations profile (how it is performing on an economic basis) is determined …

…to avoid the slowdown of domestic markets, for this to happen the government must intervene into the market and try to keep the Adelaide plant from shutting down. They can do this by investing in the business, decrease tax taken from the business and they can try to raise the value of the $AUD as this is the main problem causing Mitsubishi to lose profits. Maybe by doing this, the Adelaide plant might remain open.