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Deakin University
Assignment Attachment
SheetFaculty of Business and Law
Date received
This form must be completed, signed and attached to each assignment you submit within the Faculty
of Business and Law.
If submitting online, this form must be completed and submitted with your assignment.
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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Plagiarism and Collusion
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acknowledgement as to its authorship, the work of another person.
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Work submitted may be reproduced and/or for the purpose of detecting plagiarism and collusion.
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This assignment has been assessed and moderated in accordance with University Policy.
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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.htmlRecommended