International Business (IB) Assignment: chAFTA
Added on - 28 May 2020
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Running head: INTERNATIONAL BUSINESSInternational BusinessName of the Student:Name of the University:Author Note:
1INTERNATIONAL BUSINESSExecutive SummaryThis paper will highlight the free trade agreement in Australia and these free trade affects theinternational trade of a particular country. It has highlighted the merits and demerits of chAFTAand an in-depth analysis was also carried out in this paper. The outcomes of chAFTA were alsodiscussed in this paper. The progress of this FTA in Australia and the opportunities are alsohighlighted in the paper. It can be said that the Australian economy has been benefitted to a hugeextent from this free trade agreement.
2INTERNATIONAL BUSINESSIntroductionTrade agreements helps in the determination of tariff and other import duties that areimposed on the country. Free Trade agreements are designed in such a way to reduce the barriersbetween two or more countries and thus it helps in the protection of local market and industries.These trade agreement affects the international trade of a particular country. The most importantand large multilateral trade agreement is the North American Free Trade Agreement (NAFTA).This trade agreement is between Mexico, United States and Mexico. It has been found thatNAFTA quadrupled to $1.14 trillion in 2015. These kind of trade barriers are usually in the formof tariff and different types of trade quotas. An example of this is Japan’s tariff that is imposedon Australian beef. The Free Trade Agreement also covers intellectual property rights,government procurement and different competition policy. These free trade agreements aredesigned in such a way to benefit the consumers. The Japanese exporters will also lower thetariff in whitegoods, cars and electronic items in Australia. It can be said that free tradeagreement do not encourage trade liberalization that is effective like multilateral tradeagreements (Park 2017). Australia has seven free trade agreements with Chile, Thailand,Singapore, US, Chile and ASEAN countries.DiscussionThe China-Australia Free Trade Agreement(chAFTA) was started on 20 December 2015.This has laid a foundation for the upcoming phase of economic relationship with China. Theagreement will create significant opportunities for Australia in China and thus Australia can beregarded as an important exporter for different products and services and thus this has accountedfor more than one-third of the total exports in Australia. The Government has welcomed the