Factors

Question 1

Factors that affect Trade Balance

Answer 1

Domestic Business Cycle
Worldwide Business Cycle+Commodity Prices
Aus International Competiveness
Exchange Rate

Question 2

Factors affecting Income Balance

Answer 2

Saving-Investment Gap
Foreign Liabilites+Foreing Assets
Interest Rates
Company Profits

Question 3

Factors affecting Terms of Trade

Answer 3

Commodity Prices
Exchange Rates

Question 4

Factors affecting Exchange Rates

Answer 4

Movement in Terms of Trade + Commodity Prices
Relative Interest Rates (Interest Rate Differential)
Relative Inflation Rates
Domestic Economic Growth
Worldwide Economic Growth
International Capital Flows