A comparison of two economies UAE and Australia

Research Paper from the year 2012 in the subject Economics - Case Scenarios, grade: A, University of Massachusetts Boston, language: English, abstract: In this paper, we describe as well as compare the economies of two countries (United Arab Emirates (UAE) and Australia).We do this by effectively researching the economic characteristics of two national economies, and then selecting a limited number of critical variables which can best be used in describing their similarities and differences. We also research the critical background on the two national economies so as to explain their current economic situation while also suggesting their likely future economic states. The paper begins by presenting a general introduction to the two economies. This is the followed by a detailed and in-depth macroeconomic analysis of Australia's and UAE's economies.The specific variables to be compared are GDP and its components final consumption expenditure, General Government final consumption expenditure and gross capital formation,CPI and Inflation, unemployment, Interest Rates, Exchange Rates, Government Spending & Taxes as well as Money Supply. The analysis is specially illustrated and explained by means graph data spanning ten years. A discussion then follows followed by a conclusion on the better economy among the two.IntroductionA comparison and description of the Australian and UAE economies is important to investors and multinationals who are interested at the country-level suitability analysis. This is because of the advantages of investing in vibrant economy and the risks associated with investing in a shaky economy. In this paper, we present a detailed comparison and description of the Australian and UAE economies with a view of coming up with the most appropriate investment destination.The Australian EconomyAustralia has a GDP of about US$1.57 trillion (CIA,2012).The Australia economy is valued at more than $6.4 Trillion and is the thirteenth largest national economy by virtue of nominal GDP. It is the 17th largest economy when measured by the level of PPP adjusted GDP.It comprises close to 1.7 percent of the global economy. The economy is dominated by the service sector (makes 68 percent of its GDP).The mining sector represents close to 10 percent of its GDP while the mining related economy sector makes 9 percent of the economy (Collebatch,2009).