Andrew Newbound Commerce Study Notes © Andrew Newbound 2013.
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Transcript of Andrew Newbound Commerce Study Notes © Andrew Newbound 2013.
© Andrew Newbound 2013
Andrew Newbound
Commerce Study Notes
© Andrew Newbound 2013
MONEYUnit 1
© Andrew Newbound 2013
Needs & Wants
Needs – Essential to survival Water Food Shelter Clothing
Wants – luxuries – Not essential Provide us with a level of satisfaction Help support to standard of living we
want
© Andrew Newbound 2013
Wants
E.g. Mobile phones iPods TV’s Dishwashers Computers
© Andrew Newbound 2013
Types of Wants
Wants grouped - according to who they are purchased for Individual Community (Collective wants)
© Andrew Newbound 2013
Collective Wants
Fire stations Electricity Garbage collection Schools Hospitals Water to houses Roads Police Sporting Venues
© Andrew Newbound 2013
Goods & Services
Consumer Anyone who buys goods and services Good – items that can be seen and
touched E.g. Games Hardware Stationary Furniture Electronics
© Andrew Newbound 2013
Goods & Services
Service Intangible good that is provided by an
individual or organisation E.g.
Surf life saving Gardener Pool (public) Fire service Teacher Internet
© Andrew Newbound 2013
Factors Affecting Consumption
Advertisements Design Environment Price
Brand names Quality Employment Reviews
© Andrew Newbound 2013
Factors Affecting Wants
Age People’s tastes differ according to their age
Fashion and Taste New fashions are seen in the clothing
market each year Advertising
Informs consumers of the product available Income
Determines what products you buy
© Andrew Newbound 2013
Factors Affecting Wants
Culture Western societies have different wants
compared to Eastern societies Environment
Environmental issues affect people’s purchase Values
Our morals determine what we want E.g. clothing, fur coats
Attitudes Pressure from society & friends
© Andrew Newbound 2013
Single Use and Durable Goods
Difference is amount of times they can be used Single Use/Non Durable
1 or few uses Inexpensive Used up quickly Bought regularly
Durable Last and give satisfaction over a period of time Requires repairs Bought on credit Depreciate over time
© Andrew Newbound 2013
Complementary & Substitute
Complementary Goods Consumed WITH another good E.g.
Playstation & Playstation Games Car & Petrol Shoes & Socks
© Andrew Newbound 2013
Complementary & Substitute
Substitute goods Can be purchased INSTEAD of another
good E.g.
Pepsi or Coke Cola iPod or MP3 Player PC or Mac Butter or Margarine
© Andrew Newbound 2013
Types of Producers
Primary Producers Extraction of raw materials E.g.
Macadamia nut farmer Diamond mine worker
Secondary industry Transformation of raw materials into products E.g.
Car assembly worker Carpenter
© Andrew Newbound 2013
Types of Producers
Tertiary Wide range of services E.g.
Motor mechanic Train driver
Quaternary Information & communication services E.g.
Bank Clerk Accountant Insurance Clerk Computer Operator
© Andrew Newbound 2013
Types of Producers
Quinary Domestic services E.g.
House keeper Waiter Nurse Shop Assistant
© Andrew Newbound 2013
Specialisation
Improve standard of living by creating experts in more fields
E.g. Eye doctor Dentist Foot doctor
© Andrew Newbound 2013
Bartering
Types of Economies Subsistence
Providing for themselves Bartering
Swapping one good for another
Problems with Bartering Calculating value Double Co-incidence of wants
Finding someone who has what you want and wants what you have
© Andrew Newbound 2013
Bartering Advantages and Disadvantages
Advantage No effect on the
environment Renewable money ‘Money can grow on
trees’ Facilitates local trade Allows you to get rid
of excess goods No depress
Disadvantages Not getting what you
want Not easily carried
around Not having anything
worth trading Not easily divisible No ‘value’ Not in local area Produce can’t keep
© Andrew Newbound 2013
Some Interesting Facts About Money
Money Considered necessary in our way of life
Primitive societies used bartering 1st coins
Made in Lydia Electrum Stamped with weight
Early paper money Chinese Easily wearing
© Andrew Newbound 2013
Functions of Money
Exchange for goods and services Saving for the future A measure of value Recording debt and payment of debt
© Andrew Newbound 2013
Modern Forms of Money
Bank deposits Cheques – not legal tender Debit cards and Eftpos
© Andrew Newbound 2013
Requirements of Money
Divisible – Buy expensive & cheap Portable – Carry money around Durable – Last for a long time Scarce – Can’t be easily
obtained/copied Easily recognised – Easy to identify Generally acceptable – People will
accept
© Andrew Newbound 2013
Inflation
Rate at which the cost of goods and services rise each year
Calculated by typical basket of goods & services and calculating the percentage of rise
Consumer price index - CPI
© Andrew Newbound 2013
Monetary Policy
The RBA (Reserve Bank of Australia) decides how the economy grows Inflation aim – 2-3% Done by official interest rates
© Andrew Newbound 2013
History of Money In Australia
1788 – 1900 Production of gold coins – boosted issue
of private bank notes – no national currency
1900 – 1920 National currency – reflected the land
1920 – 1960 Changed several times – reflected our
economic development
© Andrew Newbound 2013
History of Money In Australia
1960 – 1988 Decimal currency introduced – captured
emerging social & cultural diversity and its contribution to wider world
1988 – Today Polymer notes introduced – 1ST IN
WORLD
© Andrew Newbound 2013
Current Notes
Note Front Back
$5 Queen Elizabeth II
Old & New Parliament House
$5 (Federation)
Sir Henry Parkes Catherine Helen Spence
$10 Banjo Patterson Dame Mary Gilmore
$20 Mary Reibley John Flynn
$50 David Unaipon Edith Cowan
$100 Dame Nellie Melba
Sir John Monash
© Andrew Newbound 2013
Role of RBA
Responsible for production, reissue and cancellation of Australia’s notes
Notes from RBA and are distributed by the National Note Processing and Distribution Centre
Royal Australian Mint produces coins
© Andrew Newbound 2013
Damaged Notes
Missing Happens
20% or less Replaced
20% – 80% Proportion paid for
80% or more Nothing
© Andrew Newbound 2013
Security Features
Detect a counterfeit Look at note Feel the note Try to tear it Feel the print Hold the note up to light Magnifying glass
© Andrew Newbound 2013
Security Features
Clear Window Clear area which can be seen through
Polymer Substrate Plastic like substance notes are printed
on See-through registration device
Works when images printed on each side or imperfect register when the note is viewed in transmitted light
© Andrew Newbound 2013
Security Features
Shadow Image An image created by a variation in the
opacity of the substrate can be viewed in transmitted light
Intaglio Print Raised print
Background print (offset) Flat print used to create coloured
background designs
© Andrew Newbound 2013
Security Features
Microprinting Small print requiring a magnifying glass
to view Fluorescent Ink Properties
Printed feature on a note which may or may not be viewed in normal light but fluoresces under ultra violet light
© Andrew Newbound 2013
Money Extended Response
Coins – pieces of metal stamped with weight Lydians – 7th century BC
Metals used as money Bartering common in ancient
societies Now
Most common form of exchange How well it works Divisible, portable, durable, scarce,
recognisable, generally acceptable
© Andrew Newbound 2013
Money Extended Response
Forms of money Debit cards, Eftpos, bank deposits, cash Cheques – not legal tender/money
Can be used to buy goods Most businesses accept them
Still fulfils same purpose Exchange good and services Measure of value Recording debt/payment of debt Can be saved
© Andrew Newbound 2013
Money Extended Response
Essential part of lives Without money, can’t be commercial
society Couldn’t have many job opportunities
© Andrew Newbound 2013
TOURISMUnit 2
© Andrew Newbound 2013
Reasons People Travel
Visit People Religion Job Opportunities Medical Education Conferences To get away
Buy things Sport Visit famous places Reward New beginning Experiences
© Andrew Newbound 2013
Tourism & Travel
One most important industries Employs millions
Tourist as defined by United Nations ‘A person who is going to be away from his or her
home for at least 24 hrs and who is travelling for one or more of the following reasons:
Recreation Business Education Sport Religion To visit friends
© Andrew Newbound 2013
Identifying Travel Destinations
Sources Internet Travel agents The media Travel Guides Family Friends
© Andrew Newbound 2013
Internet
Advantages Great deals Organise yourself Small tourist operators
promote themselves Avoid travel agent
commission Convenient
Disadvantages Reliability Time Information overload
Large number of potentials
© Andrew Newbound 2013
The Media
Common source of travel info TV programs
The Great Outdoors Getaway Escape With ET Sydney Weekender
Newspapers Large city papers have travel section
© Andrew Newbound 2013
Travel Guides & Family and Friends
Travel guides Provided detailed info Written by people who have actually
visited the places Family and Friends
Offer advice on where to go and stay 1st hand experience
© Andrew Newbound 2013
Factors Affecting Choice of Destination
Personal Financial Political & Environmental
© Andrew Newbound 2013
Travel Destinations
Tourism Being away from home for more that
24hours Domestic Tourism
Travelling within Australia International Tourism
Travelling outside of Australia Ecotourism
Travel with minimum impact on the environment
© Andrew Newbound 2013
Factors Affecting Choice of Destination
Personal Likes/dislikes
Financial Money available
Political Visas – getting to places
© Andrew Newbound 2013
Planning a Trip
Group travel – organised Safe
Itinerary – travel plan Independent travellers – don’t follow
plan
© Andrew Newbound 2013
Passports & Visas
Passport Shows citizenship Allows you to go overseas Leave & re-enter Australia
Visa Permission to enter country Working/tourist
© Andrew Newbound 2013
CITIZENSHIPUnit 3
© Andrew Newbound 2013
What Is Democracy?
“Government of the people by the people by the people and for the people” Abraham Lincoln People chosen by the people to represent
them Greek Democracy – Voting
Men with 2 Athenian parents, over 18 20% of population Not very democratic – not all people can
vote
© Andrew Newbound 2013
What Is Democracy?
Direct democracy People say what they want for
themselves Representative democracy
People represent you and your opinions Lower house – House of
Representatives 150 people – represent electorates Elected every 2 years
© Andrew Newbound 2013
What Is Democracy?
Referendum ‘A legislative act is referred for final
approval to popular vote by the electorate.’
Must be held if constitution will be changed
© Andrew Newbound 2013
Democracy In Australia
Society based around idea government power derived from the people
We elect people to represent us in parliament
Vote for political party with policies we agree with.
© Andrew Newbound 2013
Structure of Government In Australia
3 Levels Federal State Local
Responsibilities for Federal & State Set out in constitution
© Andrew Newbound 2013
Federal Government Responsibilities
Industrial Relations Taxation Environment Communication Immigration Customs Social security
Currency Resources Non government
schools Universities Foreign Affairs Trade Defence
© Andrew Newbound 2013
State Government Responsibilities
Health Ambulance Fisheries Maritime Services Racing/Gaming Infrastructure
Police Transport/Roads Electricity/Power Environment Public Schools Fire Services
© Andrew Newbound 2013
Local Government Responsibilities
Beaches Tourism Pools Developments Parks & Gardens Local Roads Sporting Facilities
Sanitation Sewage Household Waste
Services Gun Ranges
Water
© Andrew Newbound 2013
Structure of Government
Federal & state structure:
© Andrew Newbound 2013
Structure of Government
Inputs:Party Policy
Public Service
Interest Group
Media
Inputs
© Andrew Newbound 2013
Parliament
Federate – unite 7 parliaments in Australia
6 states, 1 federal Members are elected
Lower House – House of Representatives
Upper House – Senate (house of states)
Parliament with 2 houses - bicameral
© Andrew Newbound 2013
Parliament - Bills
Lower House Introduction of bill 1st reading 2nd reading Committee stage 3rd reading
Upper House 3 readings
Governor General Makes official
1st reading Time of debate
Upper house Receive most
amendments (changes)
After GG signs bill Becomes law
© Andrew Newbound 2013
Prime Ministers & Premiers
Prime Minister Leader of government Current – Kevin Rudd
Cabinet Party of senior
ministers Minister
Member of government
1st P.M. Edmond Barton
Premier NSW current Nathan Reese Labour
Treasurer In charge of money
Prime minister Elected to lower
house Then chosen for P.M.
Premier Same as P.M.
© Andrew Newbound 2013
The Role of An M.P.
Constituency – people you represent MP must
Speak to lobby groups Meetings with other MPs Speak in front of people Attend local events
Needs to be re-elected
© Andrew Newbound 2013
The Role of An M.P.
Branch stacking Offering an incentive for standing for
election Usually for recognisable people
Electoral Committee In charge of elections
© Andrew Newbound 2013
Political Parties
Political Party Main way political power is exercised Group of people in parliament that unite
Major Parties Australian Labor Party (ALP) Liberal Nationals Democrats Greens
© Andrew Newbound 2013
Political Parties - ALPAustralian Labor Party Formed 1891 Better represent
workers 1st elected 1904
Labor Prime Ministers (1st) JC (Chris) Watson Andrew Fisher John Curtin Ben Chifley Gough Whitlam Bob Hawke Paul Keating
© Andrew Newbound 2013
Political Parties - Coalition
Liberal Party Formed 1944
Gordon Menzies Be a strong alternative
Government Big/Small Business 1st elected 1949
Gordon Menzies Malcolm Fraser John Howard
Country/National Party Formed 1919
Country Party Represent Farmers Leader becomes
deputy PM If become government
Renamed 1980
© Andrew Newbound 2013
Political Parties – Minor Parties
Democrats Launched 1977
Don Chipp ‘Ordinary’ people
could actively participate in policy development
Janine Haines Took over leadership
1986 1st woman in Aus to
lead political party
Australian Greens Formed 1992
State based merged Not WA
Environment
© Andrew Newbound 2013
Political Parties
Party Name When Formed
Represents
Australian Labor Party (ALP)
1891 Workers
Liberal Party 1944 Big/Small business
Country/National Party 1919 Farmers/Regional Australia
Australian Democrats 1977 ‘Ordinary’ People
The Greens 1992 The environment
© Andrew Newbound 2013
Political Parties
Independents Member of Parliament (MP) not in a
party Crossbenchers
Sit between parties