The strong value of the Australian dollar and its impact on Assignment - 1

The strong value of the Australian dollar and its impact on Australia's exports about tourism - Assignment Example 102). The variations in the dollar usually come alongside different impacts on the general economy of the country. Depending on the prevailing level of elasticity, some firms are usually affected by the value of the dollar, while others benefit immensely from it (Carson, Richards & Tremblay 2005, p. 100; Gary 2006, p. 1). The export markets for various goods and services in Australia seem to be exceptional, but this is not always the case in the face of the changing value of the Australian dollar. According to the a recent survey that was done on the impact of the dollar, the value of the export markets fell down to ten places because of the appreciating value of the Australian dollar. This is according to the world ranking of export markets from Australia. It has been noted that the value of the Australian dollar has been on a steady upward since 2008 (Australian Capital Tourism Corporation 2004, p. 87). This is attributed to the prevailing economic boom as a result of the mining activities going in the country. In this respect, investigations conducted about the mining boom in other countries like China and countries in the East cannot be ignored (Nicole 2013, p.1; Robert 2013, p. 2). The increase in value of the Australian dollar has had a direct multiplier effect, meaning that other industries have equally felt it. These industries include the agricultural sector, service industry among many others. The impact of this rising value of the dollar has critically affected the tourism sector, which largely depends on people expenditure while visiting various places in the country (Tourism Research Australia. 2005, p.1 ). In general, it is a common observation that the elasticity of people’s expenditure in the process of touring various places in the country is large. For instance, foreigners income elasticity is directly related to the elasticity of