...Today I am going to reflect on David Thomas’s seminar on Chinese investment in Australia. His seminar was very insightful and I hope to remind you of the points I learnt and possible solutions to the challenges portrayed with theories. The 12th Five-Year Plan adopted by the Chinese government in 2011 and devotes considerable attention to energy and climate change and establishes a new set of targets and policies for 2011-2015. While some of the targets are largely in line with the status quo, other aspects of the plan represent more dramatic moves to reduce fossil energy consumption, promote low-carbon energy sources, and restructure China’s economy. Among the goals is to "gradually establish a carbon trade market." The Five year plan can be summarized go out, go west and go green. China’s 'go west' strategy is about moving investment and economic activity from its current concentration in China’s south and its coastline, inland to the flourishing mega-cities of the inner western region. TARGETS 'Going out' refers to China’s strategy of growing offshore investment. With food security and safety for a billion people a priority for policymakers, external investment in agriculture and food interests is a high priority for investment targets. Healthcare and education - a bonus for Australian universities - is also a priority, these investments are likely to help China’s pivot from a manufacturing to a service economy. TARGETS 'Going green' is a delayed...
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...Australia and China have adopted different economic systems in order to cater for the society. The Chinese and Australian economies have many similarities and differences from Australia’s market based economy to China’s planned economy. Like all economies, they both face the problem of scarcity of resources, what to produce, how much to produce, who will produce. Both of these economies have adapted to changing the world in order to allow their economies to grow and develop. These similarities and differences include the economic growth and quality of life, the environment, employment and unemployment, distribution of income and the government role. Australia and China Australia have very little similarities in terms of economic growth and quality of life. Australia is a democracy and China is a one party rule socialist party. The quality of life also comes in the size and the population of the country. Australia’s area of 7,682, 300 sq km is 80% of China’s 9,595, 960 sq km, yet its population is 22 million which is only 1.7% of China’s 1.35 billion. For Australia’s GDP per capita is $43,000 ranking 10th in the world and China’s is only $7945 which is 98th in the world. Due to the extreme difference in the density of population and per capita income. Basically there isn't a lot of similarity except the large gap between rich and poor and for a few wealthy individuals who could afford the same luxuries. Employment and unemployment are one of the many similarities and differences...
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...Executive Summary Traditionally, Australia-China trade & economy was simple. Australia met the demand for raw material for China’s manufacturing & China exporting back to Australia its finished manufactured goods. Thus China-Australia became each other’s largest trading partners. Now that China’s economy is affected, less spending on infrastructure the demand has shifted from raw materials & commodities to other specialized manufactured equipment, services like health, education, financial, engineering, agriculture etc. for which Australia has to change gears to gain distinctive advantage to its other competitors. However in Chinese economy there still exists substantial market for Australian commodities, such as wool, wines, wheat, minerals & iron ore, as Australia has advantage of nearness by sea for the shipping lines. The Free Trade Agreement is a win-win situation as Australia can easily meet the changed needs of Chinese for sophisticated medical goods & services in Health, Social Security, Human Resources, Banking, Education, Legal, Agriculture, Winery & Dairy. China’s economic woes & slowdown in addition to general economic slump has impacted Australia hard, specially the mining cum trading houses at present. This impact is not limited to just Australia but whole of Asia-Pacific, lain America & Canada. Thus to conclude, there are some positives about the Australian economy as GDP growth is up from the last year & China needs Australia, as it shall always need trading...
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...the brief description of Australia and china money market and interest rate trends. Besides, the leading roles of changing structure of economy and monetary policy for each country will be discussed in detail. Moreover, the most crucial point of this report is to analyse both historical and future money market interest rate trends in these two countries. Table of contents Transmittal document 1 Table of contents 3 Executive summary 4 Introduction 5 Australia 5 Historical Money Market Interest Rates in Australia 5 Prediction of the coming interest rate trend in Australia 7 China 7 Historical Money Market Interest Rates in China 8 Prediction of the coming interest rate trend in China 10 Conclusion 11 Appendices 12 Reference list 13 Executive summary This report aims to discuss the money market in two countries. Through a series of data and analysis, both historical and future interest rate in these two countries as well as events that lead the trends will be presented in this report. Furthermore, structural change for monetary policy that shows effects on the interest rate trends will be discussed particularly. Meanwhile, concerning the influences that financial instruments would have on the interest rate change, some basic market information such as balance between supply and demand as well as liquidity effect are demonstrated specifically. On the other hand, some forecasts of the interest rate tendency of Australia and china will also be explained...
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...Foreign Subsidiary Investment Plan Case: Multinational Capital Budgeting China & Australia Hypothetical Incorporated MBA AF 626 Fall 2011 International Financial Management Professor XX XX XX XX XX Table of Contents PART I – Analysis: Australia vs. China A. Country Analysis 1. Economic Environment 3 2. Social Environment 10 3. Political Environment 12 B. Industry Analysis 1. Aluminum Industry in Australia 17 2. Airline Industry in China 18 PART II-Capital Budget Analysis 1. Weighted Average Cost of Capital 19 2. Net Present Value 20 3. Scenario Analysis 21 PART III – Conclusion: Investment Decision 23 References 24 Appendixes 26 PART I – Analysis: Australia vs. China A. Country Analysis I. Economic Environment Australia Australia is a market oriented financial system which includes the world’s 13th largest economy and the 9th highest per capita Gross Domestic Product (GDP), with almost two consecutive decades of growth and the unemployment rate falling to a generational low. As a result of nearly three decades of structural and policy reforms, Australian’s economy has proven to be a competitive player in the increasingly integrated global markets. In terms of country risk, Australia’s favorable attitude towards private enterprise and its well-protected property...
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...ELECTRONIC ASSIGNMENT COVERSHEET | | Student Number | 31963763 | Surname | Dendup | Given name | Tenzin | Email | Dendup.tenzin3@gmail.com | | | Unit Code | POL161 | Unit name | Asia Pacific in the Global System | Enrolment mode | Internal / external | Date | 13/05/2013 | Assignment number | 2 | Assignment name | Rise of China and Its Security Risk to Australia | Tutor | Kreisti Nillus | Student’s Declaration: * Except where indicated, the work I am submitting in this assignment is my own work and has not been submitted for assessment in another unit. * This submission complies with Murdoch University's academic integrity commitments. I am aware that information about plagiarism and associated penalties can be found at http://www.murdoch.edu.au/teach/plagiarism/. If I have any doubts or queries about this, I am further aware that I can contact my Unit Coordinator prior to submitting the assignment. * I acknowledge that the assessor of this assignment may, for the purpose of assessing this assignment: * reproduce this assignment and provide a copy to another academic staff member; and/or * submit a copy of this assignment to a plagiarism-checking service. This web-based service may retain a copy of this work for the sole purpose of subsequent plagiarism checking, but has a legal agreement with the University that it will not share or reproduce it in any form. * I have retained a copy of this assignment. * I will...
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...Some commentators have suggested that Australia is ignoring Japan due to the rise of China as Australia’s number one trading partner and the growing importance that is attached to this relationship. Some commentators have suggested that Australia has deliberately been repulsing their trade with Japan due to their rise in trade with China and have prioritized them as their top global trading partner. China is now Australia’s most important trading partner. In 2009, China’s contribution with Australian exports was three times more than its world import share. China’s competitiveness in manufacturing imported good provides low-costs for Australia. Global trading is the exchange of tangible and intangible products between countries. These products include food, clothes (materials), alcohol, jewelry, tobacco and cars. Two texts which relate with trade between Australia, Japan and China and which will be mentioned below are “Cry havoc? Public opinion and recent Australia-Japan relations” and “Going Global: A New Australia- Japan Agenda for Multilateral Cooperation". There are many reasons as to why Australia’s relationship is increasing more and more with China as opposed to Japan. Reasons include the low unemployment rate in China, globalization and China and Japans currencies compared to the Australian dollar. According to statistics Japans population is estimated to be 127 million people where as Chinas population is an outstanding 1.3 billion people. These figures are a clear...
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...John Mearsheimer takes a neo-realist viewpoint in his 2010 article on “Australians should fear the rise of China”. The validity of his arguments can be assessed, but, ultimately, a more satisfactory argument can be formulated in refuting his realist perspective; neo-liberal theories, drawn from liberal scholars such as Joseph Nye, uphold the counter argument that Australians should not fear the rise of China. China has already surpassed the United States as the world’s largest economy, and it will undoubtedly continue to grow and develop; estimates suggest that even if economic growth slows down, China is still likely to develop a high-income economy before 2030 (The World Bank 2013). As a result of its growing economic strength, China has...
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...Australia seems to be stuck between its economic interests, which lie with China and Asia, and traditional ties with the America. General Peter Leahy warns of US-China collision FORMER Australian army chief Peter Leahy has urged Australia to tread warily in expanding its military ties with the US to ensure they do not "lead to increased tension and even conflict" with China. [pic] the Australian, 12 April, 2012 Warning against becoming "caught" between the US as its security guarantor and China as its economic underwriter, Professor Leahy has welcomed Australia's decision to play host to US marines, but noted that "too much of a good thing" could put unnecessary pressure on China. His comments, in an opinion piece in today's edition of The Australian, came as the China Daily state-owned newspaper hit out at Australia's expanding links with the US, warning they could spark a collapse of trust and endanger Sino-Australian economic ties. In a strongly worded editorial, the newspaper yesterday also warned that the Gillard government's decision last month to ban Chinese communications giant Huawei from bidding for work in the $36 billion National Broadband Network had created the perception in Beijing that Australia wanted to obstruct Chinese companies. But, as US Secretary of State Hillary Clinton insisted her nation wanted close and peaceful relations with Beijing, Julia Gillard rejected the Chinese newspaper's suggestion that Australian foreign policy was...
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...What the Government should do in regard to China policy following the 2013 Federal Election 30 July 2013 at 22:44 Some Australian commentators claim that Australia is at a cross roads, and that it is unprecedented that its largest trading partner is not its closest ally.[1] In fact, its major ally and largest trading partner are engaged in a Cold War power struggle. They go on to say that solving this ‘unprecedented’ situation is Australia’s greatest foreign policy conundrum for at least the next decade.[2] However, Australia’s situation is not unique, neither in the region nor in its own history. By considering the recent positions of the major political parties this essay will examine Australian and Chinese foreign policy in relation to the importance of the Australian-Chinese relationship and whether we need to choose between China and America. Lastly, I shall recommend strategies for the Australian government to implement regarding its China policy. The overarching foreign policy aim for both the ALP and Coalition is serving Australia’s national interest, which can be broadly broken down into four main goals: maintaining the territorial integrity of Australia, including the safety and security of its society and economy; ensuring regional stability and preserving the existing regional balance of power; the sea lanes that make up the arteries of international trade remain open; and responding to new security threats.[3] Included in the last goal are terrorism, international...
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...Australia has a free trade agreement with New-Zealand and Japan. These two countries are very close to Australia which make it easier to trade and they are complimentary countries which means that they complete each other’s productions. ASEAN is the agreement that was created and agreed on in January 2010. In 2015, New-Zealand spent 120.0 billion of trading. The main reasons why the agreement happened was to eliminate the tariffs and lower transaction cost. Japan-Australia Economic Partnership Agreement (JAEPA) was created in April the 7th and signed in Canberra July 8th 2014, but started being used January the 15th in 2015. It is for Japan the best trade agreement ever concluded. The reason why they were established was mainly so the countries could trade with lower or no tariffs at all, it could increase the number of jobs and more. a. ¬¬¬¬¬¬¬Free trade doesn’t only have positive impacts, it also has negative impacts. All countries are different, they can be similar. For New-Zealand, the positive are relationship stronger. That the trade between Australia and Nez-Zealand develops under fair competition conditions. It will allow Australia and New-Zealand’s barriers trade to be eliminated. In...
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...and Sladojevic (2015) explains that when an FTA agreement is made the countries or the companies involved the deal may not be welcomed by either the parties involved but when they both work towards it the realization of the agreement it becomes easy. It is also beneficial to both the countries because it enables the citizens to move freely for the betterment of the economy (Baykitch and Sladojevic 2015). China – Australia Free Trade Agreement An example of FTA agreement is the recent china-Australian agreement. The FTA agreement is considered to be beneficial to Australia in very many ways. Ball says that given that China has a population of above 13 million it opens the market for the Australian products. China is also the second-largest economy in the world's considering that is also an important manufacturing hub for the world products. It was important for the Australia to form free trade agreement because of various factors. China is the largest trading partner to Australia (Ganz 2015). It is also a fact that the merchandise trade between Australia and China has grown tremendously with a significantly notable 18 percent increase every year for the last decade. The another major factor is the fact that over the years the investment...
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...January 21st 2013 Australia’s economic growth relies on Asia’s continuing demand for resources Many countries in Europe and US are dealing with fiscal crises, banking sector instability and serious downside growth risk. Fortunately, Das (2012) point out that Australia has a great probability in the future to face global economy problems. Australia is rich in natural resources, and because of their natural resources, it helps Australia to show a great performance in economic sector (Das, 2012). Australia’s economy activity keeps increasing, also added by the amount of demand for exports from China. With the large demand of exports from China, it proposes new opportunity in diversifying trade relations from European Market. Unfortunately, Australia is too depending itself on Asian demand. If decreases happen in demand from China, it will affect headline GDP growth. From now on, the intention of this discussion is to Australia’s economic growth, which relies on Asia’s continuing demand for resources. Nowadays, Australia’s growth is really depending itself to china’s demand. Plumb, Kent, and Bishop (2012) mention that the boom in the resource sector is one of the sectors that got an effect from strong growth in Australia. Plumb, Kent, and Bishop (2012) say that there are three overlapping phases that this boom has. But he believes that someday the demand for commodities will be easier because development of economies in the Asian region will shift from goods to services. Some...
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...The Rise and Risk of China Introduction Australia has felt the full impact of Chinas “extraordinary economic growth and active diplomacy” (Ikenberry 2011, 23) in East Asia. The power transition of China “becoming a formidable global power” (Ikenberry 2011, 26) is of growing importance to Australia’s economic prosperity and security (Shen 2009, 110). But as relative power begins to shift, the latest defence White Paper released last Friday May 3, stated “the relationship between the United States and China, the region’s and the globe’s two most powerful states, will more than any other single factor determine our strategic environment over coming decades” (Probyn and Wright 2013). Drawing upon the Research Thesis of Yi Shen at the University of NSW, the aim of this essay is to examine the repercussions of the US-China strategic rivalry over Taiwan. In the event of conflict, Australia would be forced to side with the US which “has kept Asia peaceful and Australia secure for many decades” (White 2011, 81). Maintaining a military alliance with the US as well as ongoing economic opportunities with China requires stable relations amongst Asian powers by adopting “the logic of concert” (White 2011, 90). As China becomes an ongoing threat to US primacy in Asia, it is in the best interest of Australia to maintain dual relations by the establishment of a new order that ensures regional stability and security throughout Asia. Clash over Taiwan Australia’s ability to maintain...
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...Comparative HRM: China and Australia * Introduction Over the last few decades, as a rising number of globalisation of business transactions and organisations are seeking to develop and operate in foreign markets, the need for comparative human resource management studies are increased (Brewster & Mayrhofer (eds.) 2012), there are a lot of differences in HRM in different countries and regions, such as institutional culture, organisational structures, recruitment and development and relation of employee (Crystal & Iles 2013). The comparative human resource management provides a better understanding of different national settings on the management task (Hollinshead 2010). Two countries from different institutional and legal systems which are China and Australia will be comparatively analysed in this essay. Firstly, the overview of both countries and culture dimensions will be analysed. Secondly, three HR features will be outlined respectively include culture, organisational structures, and the content of Human Resource Management. in addition, a critical evaluation will be given for how and why these features in these two countries developed in the way that they have. Moreover, a comparative analysis of how HRM has developed in each country will be given, as well as that approach to HRM. * Background and Different Culture between China and Australia The study of the influences of culture is a key role in HRM (Brewster & Mayrhofer (eds.) 2012). Moreover, due...
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