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ECON- GLOBAL FINANCIAL CRISIS

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The European Union was initially established to capitalise on the proximity and relatively friendly ties between neighbouring countries. Through the removal of “traditional barriers to growth, such as tariffs and regulations”

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ECON- GLOBAL FINANCIAL CRISIS
Topics this document covers:
Economics International relations International economics Economy of Australia Export Economic history Late-2000s financial crisis European sovereign debt crisis Australia–United States Free Trade Agreement
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Topics this document covers:
Economics International relations International economics Economy of Australia Export Economic history Late-2000s financial crisis European sovereign debt crisis Australia–United States Free Trade Agreement
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Through the removal of “traditional barriers to growth, such as tariffs and regulations” (Foroohar, 2011) the eurozone intended to secure economic stability. However, following the Global Financial Crisis and the US debt crisis the current global economy lies in disarray; and, as the world looks to its once strong currencies (the Euro and $US) all that remains is a crumbling empire. The collapse of such a large presence as the European Union (EU) will inevitably have global repercussions, yet there are varied opinions regarding the extent to which Australia will feel this fallout. Some Figure 1: Australian Export and Import Volumes (RBA, 2011) speculate that Australia’s trade negotiations with China will be sufficient to prevent the nation from entering a recession. Nevertheless, the recent declin...
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