MPE711 assignment2

8/3/2019 MPE711 assignment2

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Deakin University

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SheetFaculty of Business and Law

Date received

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Last NamePlease use block letters, and enter your name as it appears

on your Deakin student cardFirst Name Student ID

CAIHUANGHOUHAOLAI

YutianLijiaWenxiaGuojunSiyuan

211001171900381346210062155211009403210043817

Unit code Unit name CampusLecturer/Tutor/Unit

Coordinator

MPE711 Global Trade and Markets Burwood Lecturer: Aaron Nicholas

Tutor: Aaron Nicholas

Assignment number / title Due date

2nd 12.Sep.2011

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MPE711

Global Trade and Markets

Due date : 12.Sep.2011

Student Name & ID: Yutian CAI 211001171

Lijia HUANG 900381346

Wenxia HOU 210062155

Guojun HAO 211009403

Siyuan Lai 210043817


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Table of Contents

The new immigration points test system .............................................................................. 1

The new immigration system effects on education industry ................................................ 2

1. Student ...................................................................................................................... 2

2. Teacher ...................................................................................................................... 3

Effect on enrolment of International Student ....................................................................... 3

Immigration affects Australians economy in short and long-term ...................................... 6

Reference: ............................................................................................................................. 9


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1

The immigration policy of Australia is changing every year. It became very hard due

to the new testing system has been introduced. It could directly affect the education

industry which is the third biggest industry of Australia. Since, many international

students who want to immigrate might prefer other countries rather than Australia.

Moreover, the economic and employment of education industry would have been

effected in short term and long term.

The new immigration points test system

The new immigration points test system was introduced on 1 July 2011 in Australia

(Australia Government, 2011). Under the system, it puts more emphasis on work

experience and is bias to applicants who have higher level of educational qualification

(Workpermit.com, 2011). In the new immigration point list, the number of nominatedoccupations will be decreased from more than 400 to 180. Occupations relating to

engineering, medical, IT, and teaching remain listed on the schedule (Australian

Government, 2011). There were many nominated occupation removed from the list

including the major of MBA, Global Trade, Finance, Marketing which, ironically are

subjects that are favoured by international students. Furthermore, occupation about

humanities and translation are also removed from the list, as well as the popular

occupations such as chef and hairdressing (Workpermit.com, 2011).

The objective of the renewed immigration policy is to ensure the Australia

government is able to select the best migrants from the application pool as to service

the Australia economic in the mid and long term (Workpermit.com, 2011). And new

immigration point system also improves the requirement standard in a rigorous point

in many aspects. For example, the applicant with IELTS score of 7 will gross 10

points under the new system; IELTS score of 8 will gross 20 points. Under the old

system, IELTS score of 7 and 6 will receive points of 25 and 15 respectively

(Australian Government, 2011).

The new immigration point test system will have a big influence on the education

industry especially the international student market. As statistics show, over 51.6% of

international students in Australia have chosen to study in business courses, especiallythe accounting major (Studiesinaustralia.com, 2011). In the new point test system,


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many business courses are not on the list (Australian Government, 2011). Even

though the accounting major is still on the nominated occupation list, it is now even

more difficult than before for applicants to apply. These will result in those

international students whose aim is to immigrate to Australia to choose another

country to be their overseas study destination. Many private vocational colleges aimed

to provide the international students courses that align with the nominated occupation

course, and they are likely to be affected by the change of the new point test system.

Those schools may be forced to close down.

The new immigration system effects on education industry

The immigration policy of Australia is a restriction and a promotion which is

published to set the boundary and also another way to attract students, so that thecountry could limit the qualities and quantity of the overseas students at the same time.

In the past few years, because Australia is a comfortable and convenient country

which is suitable for people to live in the world, so the number of incoming overseas

students is increasing and once reached 450,000 (IDP, 2008). And every year, the

Australian government would invest lots of money on the development of education

system. However, because of the new immigration policy published, there comes a

problem about employment which means there is a big threatens to the education

system, and we could see this problem both from the student and teacher perspective.

1. Student

Because the threshold is set higher than before, it is becoming harder to apply the

certificate to live in Australia as a permanent resident or as a citizen. There has being

an elimination on the number of overseas students who are willing to come to

Australia or stay in Australia after study. They dont think they could have a good

future after graduating from the colleges and universities even they are hold the

valuable certificates. So, most of them are choosing to get back to their own countries

to serve as legal employments rather than staying in Australia. The decline was

showed as 30 percentage (MJ, 2011) decreased in 2010 measurements. So the

employment area which would like to attract fresh blood from the new graduates is

now having a vacant position. And the profit is now happy. Because of the new policy,


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the government is acting as a blamed target; the profit from this area has lost about

$18 Billion (2011).

2. Teacher

Because of the decline of the number of students, there also comes a related problem

on the employment of teacher. Less enrolment of students in universities, more

teachers are facing the occupation problems. Because the elimination of students, the

profit of the university is not as good as before, so in order to make the balance, the

universities would like to cut some sources from the school like some occupations.

These years, the records showed there had been some schools closed because the

profit becoming losses and these all because of the new immigration policy.

In the future, the impact would still continue and the decline might still last if the

policy would not become more attractive or easier to apply like before. The impact is

significant.

Effect on enrolment of International Student

The international education industry is the largest services export sector of Australia

(Australian Government 2008). It provides considerable revenue each year to the

government, Immigration counts for a large proportion of the reasons why many

international students choose Australian University. This sector will provide some

data to show the difference of international student enrolment in Australia in each

year recently and try to explain the change by some economic theory.


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Figure 1 International Student Enrolments in Australia from 2002 to 2010

2002 2003 2004 2005 206 2007 2008 2009 2010

EnrolmentNumber 273855 303324 322776 344815 383818 455185 543898 631935 619119

Change rate 10.8% 5.9% 7% 10.9% 19% 20.7% 16.8% -2.03%

Source: Based on Department of Education, Employment and Workplace Relations

Figure 1 shows the number of international student enrolment in Australia each year.

It can be seen that the enrolments of international students rise from 273,855 in 2002

to 631,935 in 2009 before a slight decrease in 2010. And the increase rate starts to

decrease from 20.7% to 16.8% in 2008-2009. What's more, the increase rate even

became negative in 2009-2010 which is -2.03%. According to the report from

Embrace Australia, the enrolment of international student this year is 2.5% lower than

this time last year (Robert Pearce). Simon Marginson (cited in Embrace Australia

2011) points out that the change of the visa program and policy of immigration is one

of the reasons which stop the overseas students come to Australia.

Organisation for Economic Co-operation and Development [OECD] (n.d.) indicates

that there are two kinds of Immigration are distinguished by Australia: family

members and skilled workers. Oberviousely, the education industry is more likely to

be related to the skilled workers.


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In the new Skill Occupation list, Australia government cancels the MODL list and

CSL (Critical Skills List) have been withdrawn. And the number of new SOL (Skilled

Occupation List) decreased to 181 from the old one which have 408(Australian Visa

Bureau 2011). Although the new points test for skilled migrants is 65 which looks like

much lower than the 120 in old system. But actually, if we consider the neglecting of

occupation evaluation and other concepts, the 65 points in new system is suggested to

equal to 130-140 points in old system which is higher. It can be seen as the hardest

point test in 10 years in Australia for the applicants.

The supply and demand curve can be used to explain this situation.

Figure 2

According to the economic theory about the supply and demand curve, there areseveral factors will affect the demand curve and the preferences of people are one of it

(McTaggart, Findlay and Parkin 2010). Look back into the practice, as we have

mentioned above that it will be more difficult to apply the immigration through the

method of skill workers. This means there will be a decrease by the students whose

purpose of study in Australia is to immigrate. As the result, the demand curve will

shift left as Figure 2 has shown.


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Figure 3 Migration Program Statistics

Source: Australian Government Department of Immigration and Citizenship

In Figure 3, it can be seen that the trend of total skill immigration budget of

Australian Government is steadily. It shows that supply of skill workers' immigrationplaces which provided by Australian Government is stable. The total amounts of

relevant education chances are also planned to apply.

As a result, the market of the immigration will get to equilibrium as Figure 2 has been

shown. The total quantity of educational demand by international students is

suggested to be lower after the new immigration law carried out.

Immigration affects Australians economy in short and long-term

According to our preliminary estimates, the number of international students is

expected to decrease in following years. In the short term, the decreasing of

international students has not too much impact on Australia economy. However, it

must bring a great influence to Australia economy in the long run. Specific speaking,

as the third biggest industry, education industry can bring hundreds billions income

every year. During this income, the international students make the most important

contribution. The contribution of international students to the Australian economy


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includes the full fare tuition fee and the expenditure while they living in Australia, for

example accommodation, food and transport and so on. In 2007-2008, according to

ABS shows the average expenditure and tuition fees are $29,997 on goods and

services and $19,657 respectively. In addition, every international student can bring a

number of potential tourists, like parents and friends assist graduation ceremony.

However, the immigration policy becomes more and more constrictive, the trend of

tuition fees increasing annually. Both of them pose a lethal threat to education

industry. As noted early, most of international students study in Australia is for Apply

for emigrant Australia. When the Australian immigration policy is getting harder and

harder, the potential international students can have more options. Compare to the

United States of America and the United Kingdom, Australia is a relatively less

attractive country. In 2006, The United States of America and the United Kingdom

accounting for 21.2 and 12.0 per cent of total international students respectively.

However Australia only had 7.5 per cent and at that time the immigration policy was

not tough as recent years. In addition, the currency of Australia is appreciated from

2010. Therefore, the cost of studying and living is increasing and more expensive by

compare the United States of America. Without consideration about the immigration,

the universities of American can provide higher quality and cheap expenses. The less

attraction and the few overseas students choose Australia, the department of

immigration offices data shows the number of applications was declined 18.9% by

compare 2009-10 and 2008-09.

In the short run, the decrease of the international students can directly effect on

education export industry obviously. In the long term, it would hurt the employment


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rate and other industry is closed related to education industry. For instance, before the

new immigration policy was adopted in 2010, a number of new schools like private

school and language school were prepared for open. However, the new immigration

policy leaded to the decrease of overseas students, those schools were bankrupt and

the staff s loses their jobs. Not just private school but also top eight universities could

lay off employees. Hence, the decrease of overseas students could hurt Australia

economy in the long run and deeply.


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Reference:Australian Government Department of Foreign Affairs and Trade 2008, 'Australia in brief: Tourism

and international students', retrieved 28th August 2011,

Australian Government Department of Immigration and Citizenship 2011, 'Migration ProgramStatistics', retrieved 29th August 2011,

Australian Government Department of Education, Employment and Workplace Relations 2011,

'International student data', retrieved 28th August 2011,

Pearce, R 2011, 'International Student Numbers Down', retrieved 1st September 2011,

Marginson, S 2011, ' International Student Numbers Down', retrieved 1st September 2011,

Organisation for Economic Co-operation and Development n.d., Part 2 Comparative Analysis of The

Legislation and The Procedures Governing The Immigration of Family Members in Certain OECD

Countries, Organisation for Economic Co-operation and Development, retrieved 2nd September 2011,

Australian Visa Bureau 2011, 'Emigrate to Australia: Australian Skilled Migration', retrieved 1st

September 2011,

McTaggart, D, Findlay, C & Parkin, M 2010,Economics 6th edn, Pearson Australia, NSW.

How many students come to Australia, IDP Education-open to world,2008

Oz government blamed for decrease in foreign student enrolments in Australia, By Mary Jones, 2011
http://www.dfat.gov.au/aib/tourism_students.htmlhttp://www.immi.gov.au/media/statistics/statistical-info/visa-grants/migrant.htmhttp://www.immi.gov.au/media/statistics/statistical-info/visa-grants/migrant.htmhttp://www.aei.gov.au/research/International-Student-Data/Pages/default.aspxhttp://www.aei.gov.au/research/International-Student-Data/Pages/default.aspxhttp://www.embraceaustralia.com/international-student-numbers-down-9308.htmhttp://www.embraceaustralia.com/international-student-numbers-down-9308.htmhttp://www.oecd.org/dataoecd/20/12/41563157.pdfhttp://www.oecd.org/dataoecd/20/12/41563157.pdfhttp://www.visabureau.com/australia/emigrate-to-australia.aspxhttp://www.visabureau.com/australia/emigrate-to-australia.aspxhttp://www.visabureau.com/australia/emigrate-to-australia.aspxhttp://www.oecd.org/dataoecd/20/12/41563157.pdfhttp://www.embraceaustralia.com/international-student-numbers-down-9308.htmhttp://www.embraceaustralia.com/international-student-numbers-down-9308.htmhttp://www.aei.gov.au/research/International-Student-Data/Pages/default.aspxhttp://www.aei.gov.au/research/International-Student-Data/Pages/default.aspxhttp://www.immi.gov.au/media/statistics/statistical-info/visa-grants/migrant.htmhttp://www.immi.gov.au/media/statistics/statistical-info/visa-grants/migrant.htmhttp://www.dfat.gov.au/aib/tourism_students.html

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MPE711 assignment2