INTERNATIONAL BUSINESS International Business Name of the

Running head: INTERNATIONAL BUSINESS
International Business
Name of the Student
Name of the University
Author Note

1INTERNATIONAL BUSINESS
Executive Summary
One third of exports from Australia reach China. This implies that any shock waves from
China in international finance will be experienced by Australia highly. Recently China’s
economy has been started as a consequence of hitting back on import tariff rate in a trade war
with USA. As a major future outcome, it can be apprehended by analysing the KPMG report that
GDP cut of about 5% will take place in USA also along with 6% of that in China is the reception
of business goes on at the same pace as it is now. Considering the impact of this trade War on
other countries, KPMG analyses their economics will be slightly better in position compared to
USA in short term, however the market meltdown that they will be facing in the context of their
trade relations with USA will be far from normal in the upcoming years. However, KPMG
makes this apprehension with the view that the recession as an impact of inflated trade relations
between USA and China will be normalised in the upcoming years. Europe will experience a
GDP card of 3.2 %in a span of coming 5 years as an impact of Global recession accounting from
the US China trade war. In order to discuss, the kind of future impact on the debit and equity
market, chief economist of KPMG, Brendan Rynne highlight set major market players in the
debt and equity market will be stalled, which Shark price in risk premium, stringent credit
conditions and sharp sell offs in the equity markets. The financial markets of Australia and China
will be worst hit. In order to save their competitive and absolute advantage over other economic
markets former all other Nations, other than USA and China will try not to get drawn in this
trade conflict.

2INTERNATIONAL BUSINESS
Table of Contents
Introduction......................................................................................................................................3
Summary of key findings of the KPMG report and media coverage..............................................3
Assessment of subsequent developments in the US-China trade disagreements............................3
Assessment of subsequent developments in the US-China trade disagreements............................4
Discuss these developments in the context of the three scenarios modelled by KPMG in its report
.........................................................................................................................................................4
Conclusion.......................................................................................................................................5
Reference List..................................................................................................................................6

3INTERNATIONAL BUSINESS
Introduction
This presentation aims to conduct a key analysis of the implications of the US-China
trade war. In the first section, the primary issues highlighted in the KPMG report highlighted s
the case study have been discussed here in detail. In the second section, the subsequent
development of the US China trade war on the finance and the debt-equity market, have been
discussed In the last section, the implication of the trade war based on the issues highlighted in
the KPMG report have been done.
Summary of key findings of the KPMG report and media coverage
KPMG strictly indicates that if constant acceleration of the trade war between USA and
China takes place, along with Economic damage in both countries the entire GDP of the world
will reduce by 3.5 % annually. The country which will be immediately impacted by the crossfire
between the two Nations engaged in trade war will be Australia. KPMG report analysis says that
the financial market has not yet been exploited critically by the implications of the trade war.
However, in the future, if the financial markets are inflated in Australia, as an outcome of US
China trade war, KPMG apprehends that GDP loss equivalent to AUD $423 billion as well as
loss of household income equivalent to AUD $522 billion will be the resultant outcome.
As a major future outcome, it can be apprehended by analysing the KPMG report that
GDP cut of about 5% will take place in USA also along with 6% of that in China is the reception
of business goes on at the same pace as it is now.
Considering the impact of this trade War on other countries, KPMG analyses their economics
will be slightly better in position compared to USA in short term, however the market meltdown
that they will be facing in the context of their trade relations with USA will be far from normal in