Business Issues Between Australia and China: Implications for Firms, Industry, and Consumers

Business issues article
analysis
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1: Summary of the article:....................................................................................................3
TASK 2: Analysis of the article using two key theories which are relevant to the issues:.............4
TASK 3: Implications of issues discussed for firms, industry and consumers:...............................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
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INTRODUCTION
The term business issues refers to some form of obstacles or hurdles while conducting a
specific business either at domestic level or at international level. This occurs within two or more
business firms or even between countries that do not later agree to maintain any kind of business
relations with each other (Benz and Jaax, 2020). There are several reasons for which there is an
emergence of issue such as uncertainty at internal level, mass shift in demographics, political
instability, or could be anything that does not allow having smooth conduct of business. The
present report comprises of a discussion on business issues between Australia and China due to
tariff barriers, international investment along with its certain implication of such issue upon
firms, industry as well as consumers.
TASK 1: Summary of the article:
The mentioned article discusses about an issue related to conduct of business between two
different countries that is Australia and China where the amount of investment has experienced a
sudden fall with approximately 61 per cent in the year 2020 which seems to be the lowest in past
6 years. The main reason behind this loss of investment or business is raising conflicts related to
diplomacy between these two nations. A Chinese investment university named “The Australian
national University’s Chinese Investment in Australia” better known as CHIIA has a recorded
database for about amount of investment that is $780 million in a year. it is analysed that there
were twenty investments from China made in year 2020 which is below the year of 2016
experiencing peak at that time. In the year 2019, the amount of investment made by China in
businesses of Australia is only $1.57 billion which was dropped by approximately 47 per cent.
A director of an economic research bureau named “East Asian Bureau of Economic
Research” Dr Shiro Armstrong from CHIIA quoted that the pace of declining investments by
China in Australia is much faster than last year for international foreign investment. He further
quoted that according to the news of united Nation there is a fall in foreign direct investment
which is better known as FDI has experienced 42 per cent fall. This degradation in investment is
higher although it is being analysed in different manner. No doubt companies form China has
made their investment in almost every sector of Australia but the previous year has seen a huge
fall that only lead to investment in the sectors of real estate which was amounted to $354 million,
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