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How would the Australian tourism industry be affected by a fall in the value of the Australian dollar compared to other currencies? (A) Increased numbers of Australians travelling overseas and decreased numbers of overseas visitors to Australia (B) Increased numbers of Australians travelling overseas and increased numbers of overseas visitors to Australia (C) Decreased numbers of Australians travelling overseas and increased numbers of overseas visitors to Australia (D) Decreased numbers of Australians travelling overseas and decreased numbers of overseas visitors to Australia - HSC - SSCE Business Studies - Question 8 - 2002 - Paper 1
Question 8
How would the Australian tourism industry be affected by a fall in the value of the Australian dollar compared to other currencies? (A) Increased numbers of Austral... show full transcript
Worked Solution & Example Answer:How would the Australian tourism industry be affected by a fall in the value of the Australian dollar compared to other currencies? (A) Increased numbers of Australians travelling overseas and decreased numbers of overseas visitors to Australia (B) Increased numbers of Australians travelling overseas and increased numbers of overseas visitors to Australia (C) Decreased numbers of Australians travelling overseas and increased numbers of overseas visitors to Australia (D) Decreased numbers of Australians travelling overseas and decreased numbers of overseas visitors to Australia - HSC - SSCE Business Studies - Question 8 - 2002 - Paper 1
Step 1
Decreased numbers of Australians travelling overseas and increased numbers of overseas visitors to Australia
Answer
A fall in the value of the Australian dollar makes overseas travel more expensive for Australians, likely resulting in fewer Australians travelling abroad. Concurrently, a weaker dollar means that Australia becomes a cheaper holiday destination for foreign tourists, leading to an increase in overseas visitors coming to Australia.