Implications of Globalisation for Businesses & Trade Barriers in Australia

Running head: INTERNATIONAL BUSINESS
INTERNATIONAL BUSINESS
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MGT530 - International Business
Assessment item 1 - Evaluations & Reflections on International Business
Topic 1: International Business, Internationalisation and Globalisation
Q. Think about the company you work for (or an organisation you have
researched). Discuss the implications of globalisation for this business.
As per the globalisation, in today’s business world, Globalization led by the regions
like United States and other developing countries goes through the convolution of economy,
whereas China is identified as the furled globalization that is driven by the developing
economies and the fact that his has become efficient enough to be a compliment (Steinbock,
2018). However, being a part of World Trade Organization ( WTO), I witnessed that as per
the WTO reports, the economy of China, in the year of 2000, was hardly a tenth of the US
GDP (Stiglitz, 2017). However, China, after being involved in the World Trade Organization,
the trading business in export resulted in the favourable growth (Steinbock, 2018). Following
it, the U.S employed the trade barriers under the impression of protectionism that regulated
the economy of the nation (Steinbock, 2018). It is evident that after the years of threats in the
aspects of the trade business and its globalisation, Trump administration incorporated a tariff
war as the defensives force against China in the year of 2018 (Stiglitz, 2017).. Following the
event of the trump election, Trump on the day of his inauguration, he declared the US
withdrawal from the Trans Pacific Partnership (TPP), which was pledged to renegotiate
NAFTA and is recognized as Clinton legacy (Stiglitz, 2017). However, as per my analysis,
the early consequences of the impact of trade barriers on US exports appeared to prove
greater effects than that of the trade barriers that were put on China’s exports (Steinbock,
2018). Form the report of 2018, it is observed that the China could prepare themselves to

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target the economy of U.S by regulating stringent policies (Stiglitz, 2017). The escalation of
Tariff might leads to put an immense effect on the prices for the consumers as well as the
firms based in U.S and further it results in causing job losses (Steinbock, 2018). The
implication of the globalization in the dynamics of global trade business is regulated in the
view of WTO as it is associated with commitment of government procurement (Deckers,
2004). Within the paradigm of the framework of WTO, it is observed that there are variant
forms of actions in the context of Protectionism that the US can implement (Deckers, 2004).
By imposing these, the US goes through unfair challenges and the fact that the country is
immensely biased against other countries (Stiglitz, 2017). Ideally, WTO was designed to
prevent global trade wars. The international institutes such as the IMF, the UN, the World
Bank, the regional development banks, as well as WTO aims to regulate the globalization and
prevent trade wars (Deckers, 2004).
Topic 3: Political economy in Trade and Investment
What are some of the economic and political reasons the
Australian government might employ barriers to trade?
Trade and investment in the sphere of international level has been crucial to the Australian
economy in facilitating jobs and stable economic condition through the agreements towards
the improvement of the market dynamics in terms of trade business across all the regions of
trade that includes international trade services, goods and investments (dfat.gov.au., 2020).
Following it, such trade agreements helps in retaining the competiveness of Australian
organizations and firms and further results in attaining the wide range of better valued
services and trade services to the Australian consumers (dfat.gov.au., 2020).
As witnessed, Australia is recognized for the retaining the standards of World Trade
Organization (WTO) in the sphere of Technical Barriers to Trade in order to control disputed