Fiscal Policy of a province is the laws that regulate the amount of investment, deficit and the profit earned by it. It gives direction to the calculation of the economic growth of the country and the economic status of the country. Fiscal policies regulate the investment of a country by influencing expenditure and revenue, which is earned by a particular country. Imports and Exports are also regulated under this policy as the difference in between the imports and exports and tax collected thus bring about the actual revenue that is collected from them. The Fiscal policies of Australia and Asia are discussed below in detail
Asia’s Fiscal Policy: Asia is the continent that has seen a dramatic and vast change in its growth from a weak to a powerful province. Asia is comprised of many large and small countries, which had been under the underdeveloped sections. The continent has seen different ups and downs in the past decades and has now come up to the level of perseverance, where it has enhanced trade relations with the superpowers and developed countries. Therefore, Asian countries have taken into grant a fiscal policy that would try to earn them greater revenue from the exports. Their fiscal policy includes promoting internal growth of the continent in order to liberalize the inequality present in between them.
The research paper deals with the detailed scrutiny and extensive representation of the factors that have been associated with the analysis of the topic how the GDP growth rate and fiscal policy affect the trading situation between Australia and Asia. The researcher here deals mainly with the trading relationship in between Asia and Australia, taking into consideration the dependable variable such as GDP growth rate and the fiscal policies of the respective continents. Moreover, the Geo – political issue is one of the influential factors barring trade in between different province. As an exemplary case, geo-political issues in between China and America have excluded trading relations between them. The researcher does not able to concentrate on that issue in this research study, which acts as a literary gap. Although the researcher had tried to provide an extensive study of the concerned topic, the research work fails to analyse the factors that led to the period of inflation in the continent. The research study fails to attempt the causes of inflation and the effects on the respective economies. Thus, the missing pieces can be underlined as literary gaps for this research study.