BSB 119
Assignment

Lazybones Case Study

Global Business

5.0 Business Environment. The business environments of China and India impact how Lazybones will conduct potential operations, and must therefore be investigated.

5.1 Free Trade Agreements. After 21 rounds of negotiations beginning in 2005, on 17 June 2015 the China-Australia free trade agreement was signed; worth almost $160 Billion (Dfat,2015).The Agreement secures better market access for Australia to the world’s second largest economy, improves our competitive position in a rapidly growing market, and promotes increased two-way investment and reduces import costs (Trade,2015).More than 85 per cent of Australian goods exports will be tariff free, rising to 95 per cent on full implementation.(Trade,2015).China is our biggest export and import market(Dfat,2015). This FTA will only strengthen our country’s relationship, giving us most favoured nation status by helping Australian companies to conduct operation with China.This will greatly benefit Lazybones potential manufacturing sourcing as it will ease the implementation and business relations within China because of our strong relationship. The FTA will ease the barrier to entry for Lazybones in China as the company can capitalise on the political and economic ties Australia has, which ultimately builds business relations and growth.

(Image-Retrieved from Austrade 2014)

A comprehensive economic cooperation agreement between Australia and India was launched in May 2011.There have been eight rounds of negotiations, the most recent of which was held in July 2015(Austrade, 2014). Recently we have seen a remarkable growth in the trading relationship from India and Australia, fuelled by complementarities between the two economies.Two-way trade in goods and services has grown in