Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Effect of globalization on gdp china
Impact of international trade
Effect of globalization on gdp china
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Many products we use today are made in China. Trade between Australia and China has heightened in the last couple of years. China has one of the world’s largest economies. It has an increasing role in shaping the world economy, accounting for a third of the increase in the world’s gross domestic product and imports for the period 2000 to 2003 (The Economist 2004). It is also home to a population of 1.3 billion inhabitants, consuming a variety of goods from food items to luxury commodities, toys, clothing, gifts, most car parts and many more things Australia benefits from. For non-agricultural goods, Australian import tariffs are generally low. The most notable exceptions are on motor vehicles and textiles, clothing and footwear imports. However, Australia has undertaken to unilaterally reduce these tariffs over time, with tariffs on motor vehicles, textiles and footwear scheduled to decline to 5 per cent by 2010, while tariffs on clothing will be reduced to 10 per cent by 2010 and to 5 per cent by 2015. Product safety and quality are serious matters to australia, that must be addressed quickly and transparently to maintain consumer confidence. It is important to pursue a fact-based assessment of the issue to ensure accurate understanding of the problems and address them with the appropriate solutions. Most of these problems include, the safety of the workers in china and the heatlh issues raised about the cheap chinese goods that come from china to australia. .
Australia has good political and economic relations with both China and Japan, neither of which wish to exclude Australia from a regional trading community. In most cases, Australian Companies do not own these factories. Australian and multinational companies pay the fac...
... middle of paper ...
...d, J.H. 2004, ‘Economic determinants of free trade agreements’, Journal of International Economics, vol. 64, no. 1, pp. 29'' 63.
• Balassa, B. 1965, ‘Trade liberalization and ‘revealed’ comparative advantage’, Manchester School of Economics and Social Studies, vol. 33, no. 1, pp. 92'' 123.
• Buetre, B.L. and Ahmadi-Esfahani, F.Z. 2000, ‘Updating an input'' output table for use in policy analysis’, Australian Journal of Agricultural and Resource Economics, vol. 44, no. 4, pp. 30'' 42.
• Business Day, 2006, Cheap buys can trash Australia http://www.businessday.com.au/business/cheap-buys-can-trash-australia-20080415-26di.html?page=2ences.
• Fitzgerald, S. 1997, Is Australia an Asian country? Can Australia survive in an East Asian future? Sydney: Allen and Unwind.
• Milner, A. and M. Quality (eds.) 1998, Australia in Asia: Episodes, Melbourne: OUP
After evaluating the above factors, it is clear that the partnership between Australia and Japan is of significant importance to both countries. With reference to the Centre for Study of Australian-Asian Relations (1997:152) the future prosperity of Australia will to an increasing extent, be dependent on that of her neighbours in the Asia-Pacific area. Currently the Australia-Japan relationship could be described as “comfortable and relaxed”. However both Australia and Japan need to be alert to the changing environment and must ensure that the right frameworks and policy settings are in place in order for the two countries to prosper.
MacDermott, D. (1993). As we see you. In D. Grant & G. Seal (Eds.), Australia in the world (pp. 86-91). Perth: Black Swan Press
Bentley, J., & Ziegler, H. (2008). Trade and encounters a global perspective on the past. (4th ed., Vol. 1, pp. 182-401). New York: McGraw-Hill.
The United States free trade agenda includes policies that seek to eliminate all restrictions and quotas on trade. The advantages of free trade can be seen through domestic markets and the growth of the world economy. T...
One of the main factors that caused globalisation in Australia was a reduction in protection, the act of National trade barriers being removed. A reduction in protection of international trade is done by governments who work together to develop agreements with each other to reduce trade barriers and allow tariffs on imported goods to be reduced. Australian governments have been involved with countries such as Singapore and Malaysia in an effort to help reduce the tariffs and quotas on imported goods, resulting in free trade agreements between other countries. For example, when National trade barriers are removed, opportunities are opened up to Australian business to import goods at a cheaper price and then export other goods to new markets in other countries. Evidence of this was recently reported on the ABC news program, the reporter quoted that ‘our government should not sign any free trade agreements with Japan, until the tariffs on Australian beef and dairy products are reduced.’ This news report showed local Australian farmers who are trying to convince our Prime Minist...
Lipsey, Richard G.. "Will there be a Canadian-American Free Trade Association? ." The World Economy 9 (2008): 218-238.
Australia has had one of the most outstanding economies of the world in recent years - competitive, open and vibrant. The nation’s high economic performance stems from effective economic management and ongoing structural reform. Australia has a competitive and dynamic private sector and a skilled, flexible workforce. It also has a comprehensive economic policy framework in place. The economy is globally competitive and remains an attractive destination for investment. Australia has a sound, stable and modern institutional structure that provides certainty to businesses. For long time, Australia is a stable democratic country with strong growth, low inflation and low interest rate.(Ning)
Krugman defines comparative advantage as “the view that countries trade to take advantage of their differences” (1987, p. 132). Comparative advantage theories assume constant returns to scale and perfect competition. Krugman writes that trade exists when countries differ from one another in goods they have to offer, technology, or factor endowments. Although there are multiple models explaining the cause of trade, each differs as to what factors are included to explain why trade takes place. Economist Ohlin and authors Burenstam-Linder and Vernon began introducing counter-points to comparative advantage as early as the late 1950’s, saying that formal models of comparative advantage did not take into account all factors affecting international trade. International specialization and trade caused by increasing returns, as well as economies of scale and techn...
Mitchener, Kris, J. "Politics and trade: evidence from the age of imperialism." Voxeu.org. CEPR, 11 April 2008. Web. 30 November 2013.
From the 1970s, there has been a wave of liberalization in China, which was introduced by Deng Xiaoping. This is one of the key reasons to the rise of China to be one of the economic giants in the world. In the last 25 years of the century, the Chinese economy has had massive economic growth, which has been 9.5 percent on a yearly basis. This has been of great significance of the country since it quadrupled the gross domestic product (GDP) of the country thus leading to saving of 400 million of their citizens from the threats of poverty. In the late 1970s, China was ranked twentieth in terms of trade volumes in the whole world as well as being predicted to be the world’s top nation concerning trading activities (Kaplan, 53). This further predicted the country to record the highest GDP growth in the whole world.
The U.S. trade deficit has risen more or less steadily since 1992. In the second quarter of 2004, the trade deficit relative to GDP surpassed the 5 percent mark for the first time. Many economists already considered trade deficits above 4 percent of GDP dangerously high. The fear is that continued growth in this external imbalance of the U.S. economy will ultimately spook overseas investors. http://www.americanprogress.org/issues/2004/09/b193700.html
The article examines some of the influential theories in the domain of international trade including hyperglobalisation and comparative advantage. The publisher was keen to demonstrate how the theories need to be embraced since hyperglobalisation promotes investments flows from partners pursuing such trading agreements. The trading partners can still reduce their operation cost such as transportation while still navigating the complexities of hyperglobalisation. The author also endeavored to demystify the terminology of comparative advantage by issuing examples and previous concerns reported on the subject. It has been hailed that the traders often traded as per their factor endowments by concentrating on spheres of their specialty. The author also hinted to the readers that the theory of comparative advantage is a major concept since it is the first theory that economics students are briefed on. Arguments in support of the theory reveals that countries that have this level of visibility stand to benefit massively once they specialize in areas of their specialty. He purp...
The Law of Comparative Advantage was introduced by David Ricardo in 1817 in his book ‘Principles of Political Economy and Taxation’. According to this classical theory, a comparative advantage exists for a country when it has a margin of superiority in the production of a certain commodity over others. Comparative advantage results from differing endowments in the factors of production like technology, natural endowments, climate, etc. among different countries. Therefore, each country exports the commodities which it can produce at a lower opportunity cost or, in other words, lower marginal cost of production and imports the rest. This would ultimately be beneficial for all countries engaging in free trade as each would gain through its specialization
Free trade is a form of economic policy which allows countries to import and export goods among each other with no government interference. In recent years there has been a general consensus in economist’s stance on free trade. They view free trade as an asset. Free trade allows for an abundance of goods with increased varieties and increased availability. The products become cheaper for consumers and no one company monopolizes an industry. The system of free trade has been highly controversial. While free trade benefits consumers it has the potential to hurt manufacturers and businesses thus creating a debate between supporters of free trade and those with antagonistic positions.
We begin our study of free trade by understanding the four principles of individual decision making.... ... middle of paper ... ... Edge, Ken, “Free trade and Protection: advantages and disadvantages of free trade” NSW HSC online http://www.hsc.csu.edu.au/economics/global_economy/tut7/Tutorial7.html#more Accessed November 29, 2011. Net Aparijita, Sinha, “What are the disadvantages of free trade?