andrew newbound commerce study notes © andrew newbound 2013

© Andrew Newbound 2013

Andrew Newbound

Commerce Study Notes


MONEYUnit 1


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


Wants

E.g. Mobile phones iPods TV’s Dishwashers Computers


Types of Wants

Wants grouped - according to who they are purchased for Individual Community (Collective wants)


Collective Wants

Fire stations Electricity Garbage collection Schools Hospitals Water to houses Roads Police Sporting Venues


Goods & Services

Consumer Anyone who buys goods and services Good – items that can be seen and

touched E.g. Games Hardware Stationary Furniture Electronics


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


Factors Affecting Consumption

Advertisements Design Environment Price

Brand names Quality Employment Reviews


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


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


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


Complementary & Substitute

Complementary Goods Consumed WITH another good E.g.

Playstation & Playstation Games Car & Petrol Shoes & Socks


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


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


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


Types of Producers

Quinary Domestic services E.g.

House keeper Waiter Nurse Shop Assistant


Specialisation

Improve standard of living by creating experts in more fields

E.g. Eye doctor Dentist Foot doctor


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


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


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


Functions of Money

Exchange for goods and services Saving for the future A measure of value Recording debt and payment of debt


Modern Forms of Money

Bank deposits Cheques – not legal tender Debit cards and Eftpos


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


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


Monetary Policy

The RBA (Reserve Bank of Australia) decides how the economy grows Inflation aim – 2-3% Done by official interest rates


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


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


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


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


Damaged Notes

Missing Happens

20% or less Replaced

20% – 80% Proportion paid for

80% or more Nothing


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


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


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


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


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



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



Essential part of lives Without money, can’t be commercial

society Couldn’t have many job opportunities


TOURISMUnit 2


Reasons People Travel

Visit People Religion Job Opportunities Medical Education Conferences To get away

Buy things Sport Visit famous places Reward New beginning Experiences


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


Identifying Travel Destinations

Sources Internet Travel agents The media Travel Guides Family Friends


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


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


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


Factors Affecting Choice of Destination

Personal Financial Political & Environmental


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


Factors Affecting Choice of Destination

Personal Likes/dislikes

Financial Money available

Political Visas – getting to places


Planning a Trip

Group travel – organised Safe

Itinerary – travel plan Independent travellers – don’t follow

plan


Passports & Visas

Passport Shows citizenship Allows you to go overseas Leave & re-enter Australia

Visa Permission to enter country Working/tourist


CITIZENSHIPUnit 3


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


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


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


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.


Structure of Government In Australia

3 Levels Federal State Local

Responsibilities for Federal & State Set out in constitution


Federal Government Responsibilities

Industrial Relations Taxation Environment Communication Immigration Customs Social security

Currency Resources Non government

schools Universities Foreign Affairs Trade Defence


State Government Responsibilities

Health Ambulance Fisheries Maritime Services Racing/Gaming Infrastructure

Police Transport/Roads Electricity/Power Environment Public Schools Fire Services


Local Government Responsibilities

Beaches Tourism Pools Developments Parks & Gardens Local Roads Sporting Facilities

Sanitation Sewage Household Waste

Services Gun Ranges

Water


Structure of Government

Federal & state structure:


Structure of Government

Inputs:Party Policy

Public Service

Interest Group

Media

Inputs


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


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


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.


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


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


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


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


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


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


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


Political Parties

Independents Member of Parliament (MP) not in a

party Crossbenchers

Sit between parties

andrew newbound commerce study notes © andrew newbound 2013

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