Topic 5 The Australian financial market Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia

Topic overview The relationship between time and money The role of financial markets Financial management in the Australasian region Introduction to the Australian Stock Exchange Public finance in Australia The role of the public sector Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia

Time value of money Key concepts: simple interests compound interest present value of money future value of money Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia

Role of financial markets The prevalence of an established financial market allows us to borrow money for personal and institutional purposes. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia

Financial management in the Australasian region The financial management and policies of one country often affect those in other countries. The financial crisis in 1997–1998 in Asian countries affected the entire region. The Australian Stock Exchange and other industries such as tourism and education were affected. Since then, some countries have established a regional bond market, which will establish economic stability in the region. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia

Australian Stock Exchange (ASX) A publicly listed company that acts as a forum for shares trading. In 1998 it became a public company and listed itself on the ASX. Not all companies operating in Australia can be listed on the ASX. All companies listed on the ASX must, at regular intervals, provide relevant financial information to the public. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia

Public finance in Australia The public sector includes governmental agencies conducting business in: health education electricity water telecommunication governance domestic law and order defence. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia

Role of the public sector Varies from country to country depending on the needs of the people and the philosophy of the government. In socialist countries, public finance provides some of the public sector goods free of charge. In many developing countries, public finance provides some of the services in order for people to be able to just survive. This may be with the help of the International Monetary Fund (IMF). Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Communication Skills for International Students in Business, by Bretag, Crossman and Bordia