...Free Trade Agreements in Australia’s economy Name: Institution: School: Date: Free Trade Agreement (FTA) Free trade agreement (FTA) is described as a treaty between two or more countries so as to create a free trade area. The free trade involves commerce in goods and services being carried out across the borders without any hindrances. The FTA always involve around the playing around with the tariffs. In an FTA agreement between two countries or more the tariffs are made common, that is, uniform tariffs among them and with other non-member countries. In FTA, the labor and capital may not move freely. Baykitch 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...
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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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...up the free trade agreement between China and Australia. By the increasing globalisation which results from the „merging of historically distinct and separate national markets into one huge global market", the significance of free trade agreements is getting more and more important between the countries to remain competitive and to participate in the progress. (textbook S.12). Given that China is Australia´s most important trading partner, this assignment picks out as a central theme “The economic impacts of an Free Trade Agreement between Australia and China and shows in particular the effects for the domestic industry and for the international industry. What is a Free Trade Agreement (FTA)? Free Trade means „the absence of barriers to the free flow of goods and services between countries“. (Textbook S.76). Another definition says that “Free Trade refers to a situation in which a government does not attempt to restrict what its firms and citizens can buy from or sell to another country”. (Textbook S.119). A Free Trade Agreement is consequently a contract which is concluded between two or several countries to establish a free trade area in which trade in goods and services can be conducted across their borders, without tariffs or obstacles (e.g. ban on imports/exports). Previous bilateral economic relationship and agreements between Australia and China: The basis for the bilateral trade and economic relationship was the signing of the “1973 Trade Agreement between the Government...
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...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...
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... 11/29/12 Japan Dives into Trade Talks ASEAN leaders begin RCEP negotiations Summary: An effort is being negotiated currently to launch a new regional comprehensive economic partnership called RCEP. The concept is this: to engage 16 Asia Pacific nations for free trade and to establish a trilateral free trade agreement with China and South Korea. Negotiations in this landmark free trade pact are taking place now in Phnom Pehn following the ASEAN Summit. If or once it is formed the RCEP is likely to cover half of the world’s population and would be the largest regional trading arrangement in the world to date. The RCEP is a strategy aimed at maintaining regional growth by ensuring that markets of the participating countries remain open and competitive. It is estimated that Japan’s GDP will grow by 1.1 percent with a wide range of partnership frameworks: tariff reductions and intellectual property protection. Under RCEP, which is different from individual country to country rules, there is a unification of rules and simpler business transaction procedures. The potential free trade agreements between ASEAN and China, Japan, South Korea, India, Australia and New Zealand could eventually lead to the creation of an integrated market that spans 16 countries with a combined market population of more than 3 billion people and a combined GDP of about US$19.78 trillion based on 2011 figures. The barriers are the economic gap between the 16 potential members: GDP $67...
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...Introduction Australia has always been a trading nation. Its political, immigration and cultural links with other countries have been reinforced by international trade and investment, with its high reliance on imports such as electrical appliances, cars, clothes, footwear, PCs and watches being a reminder of these trade links. The influx of imported products has benefited Australia but in recent decades, the reliance on them has caused problems for its economy. Such problems have included trade deficits, whereby the value of imports has exceeded that of exports by between $12 and $20 billion each year. They also include foreign debt in money owed overseas, which has increased from roughly $19 billion to $527 billion since the 1980s, as well as causing unemployment. The increasingly complex pattern of Australia's trade links and the broadening of its export base reflect the attempt at tackling these ongoing problems. See image 1 Although Australia relies heavily on its overseas foreign investment and employers, with hundreds of foreign companies operating in Australia, it is also a high exporter of goods, services and capital, with most of its exports going to markets in South-East Asia. Agricultural goods and minerals dominate Australia's exports, as do some of its service firms such as Qantas which is well known overseas. This chapter will explore Australia's trade links in its membership of international trading blocs and agreements, its shift away from its traditional trading...
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...world community come into focus in China. Many believe China’s introduction to the world stage commenced in 1972, when it replaced Taiwan as representative in the United Nations. Furthermore when Deng came into Power in 1980 and ended the Cultural Revolution, China was freed from its economic reforms. China’s leaders became convinced that large amounts of capital could be acquired from abroad to speed up the country’s modernization, a change in attitude that elicited an almost frenetic response from foreign bankers and entrepreneurs. Since then China has become a member of the United Nations Security Council, admission to the World Trade organization in 2001; selected to host the 2008 Summer Olympic Games and in 2010 staged a successful Expo Shanghai, which was China’s world exposition that showcased the most technologically advanced metropolises. These were all considered significant steps in Chinas further integration into the global community. Since then Hong Kong and Taiwan have become China’s biggest partners in investment and trade. However Japan, the Unites States, Western Europe, Singapore and Australia have also joined the bandwagon with sizable partnerships with China. The main inhibitor in China’s efforts to participate in the world community is its dispute with Taiwan. Countries establishing diplomatic relations with China are forced to end relations with Taiwan. Since America pledged its support to Taiwan against attack from China in 1950 contentions have run high...
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............................. 6 2. Trade in Goods ................................................................................................................................... 7 2.1 Bilateral Trade between Australia and China .............................................................................. 7 2.2 South Australian Trade with China .............................................................................................. 8 2.2.1 Disaggregated Analysis of South Australian Trade with China ........................................... 8 2.2.2 South Australia’s trade and comparative advantage ........................................................... 9 2.2.2.1 South Australia’s Revealed Comparative Advantage in comparison to other States and Territories .......................................................................................................................................... 12 2.2.2.2 2.2.2.3 Disaggregated Analysis of Key Agricultural Products ....................................................... 18 2.2.2.4 Possible Impacts of ChAFTA Commitments on Agriculture for South Australia ............... 20 2.2.2.5 3 Disaggregated Analysis of Key Non-agricultural Goods ................................................... 14 Wine Sector ....................................................................................................................... 22 Trade in Services and Investment .............
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...NATIONAL OPINION POLL: CANADIAN VIEWS ON ASIA © Copyright 2014 Asia Pacific Foundation of Canada TABLE OF CONTENTS ABOUT THE ASIA PACIFIC FOUNDATION OF CANADA _________________________________________________ 2 ABOUT THE NATIONAL OPINION POLL: CANADIAN VIEWS ON ASIA ________________________________ 2 METHODOLOGY KEY FINDINGS ___________________________________________________________________________________________ 2 ____________________________________________________________________________________________ 3 EXPLAINING CANADIANS’ VIEWS ON ASIA DETAILED FINDINGS ___________________________________________________________ 7 ____________________________________________________________________________________ 17 SECTION 1: PERCEPTIONS OF ASIA __________________________________________________________ 17 SECTION 2: VIEWS OF CANADA-ASIA ECONOMIC RELATIONS ____________________________ 23 SECTION 3: PROVINCIAL PERSPECTIVES ON CANADA-ASIA RELATIONS _______________ 31 SECTION 4: CANADA-ASIA ENERGY RELATIONS ___________________________________________ 35 SECTION 5: PROMOTING HUMAN RIGHTS IN ASIA ________________________________________ 39 SECTION 6: CANADA-ASIA SECURITY ISSUES ______________________________________________ 41 SECTION 7: DEMOGRAPHIC FINDINGS ______________________________________________________ 43 APPENDIX: READING THE TABLES _____________________________________________________________________ 49 NOP 2014...
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...value. It is grown commercially in the temperate and tropical regions of more than 70 countries. Specific areas of production include countries such as China, USA, India, Pakistan, Uzbekistan, Turkey, Australia, Greece, Brazil, Egypt etc. where climatic conditions suit the natural growth requirements of cotton, which includes periods of hot and dry weather and adequate moisture obtained through irrigation. Cotton is harvested as ‘seed cotton’ which is then ‘ginned’ to separate the seed and lint. The long ‘lint’ fibres are further processed by spinning to produce yarn which is knitted or woven into fabrics. Trade theories International Trade * All economies, regardless of their size, depend to some extent on other economies and are affected by events outside their borders. * The “internationalization” or “globalization” of the U.S. economy has occurred in the private and public sectors, in input and output markets, and in business firms and households. The Economic Basis for Trade: Comparative Advantage * Corn Laws were the tariffs, subsidies, and restrictions enacted by the British Parliament in the early nineteenth century to discourage imports and encourage exports of grain. * David Ricardo’s theory of comparative advantage , which he used to argue against the corn laws, states that specialization and free trade will benefit all trading partners (real wages will rise), even those that may be absolutely less efficient producers. Mutual Absolute Advantage *...
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...nationally. The increasing trend in globalisation has meant an increase in the availability of goods and services increasing our Gross Domestic Product (GDP) through benefiting from increased trade and maxamising on the benefits of fluctuations in the international business cycle. The gains from free trade agreements such as advances in technology and capital equipment have effectively made Australian production far more efficient. In combination, they provide a sufficient argument to conclude that purchasing goods unbiasedly is far healthier for the economy than strictly purchasing Australian made goods. Key Words: Globalisation, Comparative Advantage, Free Trade, Economies of Scale, Economic Growth, Production Introduction As more countries move toward a market capitalist model, a broader range of substitute goods become available, and this increase in choice between substitute goods proves a time consuming issue for the average consumer in today’s society. Therefore, whilst buying Australian made goods is healthy for the economy, in an increasingly globalised society with continuing integration of economic systems, it is far more beneficial for consumers to purchase goods unbiasedly. The economic theory of comparative advantage, effects of globalisation, and free trade agreements all support this notion audibly....
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...countries were followed and several goods were prohibited for importation. Because of this situation, there were three attempts to eliminate tariffs and all restrictions. By 1974, changes started taking place. Trade liberalization allowed Chile to develop where they had a comparative advantage and reduced the production of goods and services where there was no comparative advantage. Chile growth performance has dramatically changed over the last years and the elimination of trade barriers has played an important role. Chile has become one of South America’s most prosperous nations and its economy has grown an average of 5% in the last 4 years. Chile is dependent on foreign trade and its trade in good’s share in GDP rose from 44% in 1990 to 69.6% in 2008.The diversity of imports has increased and the number of countries where Chile exports their products has increased as well. Chile main imports are: crude, petroleum, chemicals, electronics and telecom equipment, natural gas, industrial machinery, vehicles, mobile phones and house equipment. In 2008 a 0% MFN was established for imports such as machinery, vehicles, tools and equipment used for production of goods and services. Moreover, there are not import duties imposed on data processing equipment. Major import partners are USA, China, Brazil, Argentina, South Korea and Japan. Others include Mexico, Colombia and Ecuador. In order to allow new...
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...............................................5 B. Literature Review......................................................................................................6 C. Collection of Data…………………………………………………………………………………….…..7 3rd Chapter: Case Study………………………………………………………………………………………….8 4th Chapter: Conclusion……………..…………………………………………………………………………11 References…………………………………………………………………………………………………………..12 CHAPTER 1 INTRODUCTION A. BACKGROUND President Joko Widodo, often regarded as Jokowi, announced in Washington during his first official visit to the U.S. on 26th October 2015, said that Indonesia intends to join the Trans Pacific Partnership which contains measures to lower trade barriers such as tariffs and non-tariffs. It is a 21st century free trade agreement. In the period of President Susilo Bambang Yudhoyono, Indonesia, refused to...
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...This study aims to analyse the international cross cultures differences and negotiation styles that arises in the Chinese and Australian business dealings. It is crucial being able to be culturally adaptive and reactive in the international business environment, as cultural differences can have an impact on the organisation profitability and reputation therefore by acquiring a well knowledge on these topics, it will allows the organisation to gain a competitive advantage. Australia is known to be 6th largest country and smallest continent in the world, with the approximate populations of 23 million people and the accumulated GDP value of USD$1.4 Trillion in 2014. (“Australia GDP”, 2015) (“Basic facts about Australia”, 2013) The Australian...
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...(Qantas). It is regarded as one of Australia’s strongest brands and worlds’ leading long distance airline nationally and internationally. Qantas’ business is mainly constructed by the transportation of customers using both their airline brands Qantas and Jetstar as well as operating in other subsidiaries such as Q catering, frequent flyer, freight enterprises as well as other airlines (Qantas, 2013). It employs 33,000 people with 93 per cent of these employees being based in Australia (Qantas, 2013). Recently, Qantas has undergone changes that have threatened and seen Australians question if Qantas will remain an Australian brand. Reports have demonstrated 1000 jobs being cut due to restructuring of international arms as well as the decision to move Australian jobs offshore. Qantas has implemented plans to strengthen international ties particularly in Asia by funding start up airlines internationally. The global market is continuously evolving and as Bernard et al. stated ‘firms that are engaged in international trade are larger and more productive than the ones that serve only domestic markets’ (2007). However, the Federal transport Minister Anthony Albanese has stressed that “it is very important that Qantas reassure the Australian public that it regards itself very much as the Australian icon” (ABCnews, 2011). Qantas is an Australian company that has increased their operations in the global world. Therefore, macro-environmental factors such as political, economic and environmental...
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