International Business: MGT530 Assignment on Globalisation and Trade

This report analyzes key concepts in international business, addressing globalisation's impact on businesses, factor endowments, and trade patterns. The first section examines how globalisation affects Globe International, highlighting its expansion, international offices, and the influence of the US-China trade war. The second section compares Australia's factor endowments with those of Japan and China, illustrating how these resources shape trade. The final section discusses trade barriers and protectionist policies Australia could implement for political and economic benefits, including tariffs, import regulations, and trade agreements. The report references relevant sources to support its arguments and findings.

Running head: INTERNATIONAL BUSINESS
International Business
Name of the student
Name of the University
Author note

1
INTERNATIONAL BUSINESS
Answer 1)
Globalisation is indicative of integration of the markets within global economy that
creates the way for interconnectedness of national economies of the world. Global
International refers to the Australian footwear, skateboard hardware and clothing company
which was founded in the year 1985.
Globalisation have a positive impact on Globe International and it have facilitated the
expansion of the company in various countries of the world. The company have the
international offices within Los Angeles, US, France, UK and China that have aided in the
growth of the company. The company have established the European headquarters which is
located in France that have helped the company in selling directly to the board sports markets
of Germany, Belgium, Australia, Portugal and UK. The company have established the
international distribution network that have aided in the export of the goods and the services
of the company. The company have added to the brand portfolio by the acquiring of the
European skateboard brand called Cliché that have enabled the company in expanding itself
within the framework of the international markets. The company operates the own factory
that have enabled it in manufacturing the skateboards which it distributes under the Globe
and the Dwindle. The company imports the US skate products that have enabled the
development of the company. The company is involved in importing various equipment that
it needs for the manufacturing of the products. It imports the maple logs from the Great Lakes
region of Canada that have helped the company in making the skateboards of the superior
standard. The policy of the company in relation to the sourcing and the treatment of the wood
have helped the company in making a prestigious names before the other countries of the
world.
The trade war taking place in between US and the China have helped in providing a
trade boost to the Australian company. Globe International ships exports to the China and the
company have been able to make the profit on account of the trade war (Aph.gov.au., 2020).
The Washington have raised the tariffs and this have provided the ample scope to Globe
International in exporting the clothing and the footwear products to China. Australia pursues
the free trade agreement with the trading partners like the Japan, South Korea along with the
United States that have helped Globe International in getting the positive outcome even after
Brexit (Business-standard.com., 2020). The trade negotiations of Australia with that of

2
INTERNATIONAL BUSINESS
European Union have gained the momentum that have aided in increasing the scope for
Globe International.
Globalisation have a positive influence on the Globe International and it have enabled
the company in expanding itself in different countries of world. The international offices have
been set up by the company that have facilitated the process of trade of company. Globe
International is involved in importing from US which have facilitated development of
company. It is involved in importing the equipment which it needs for the purpose of
manufacturing. Globe International have made the profits owing to trade war taking place in
between US and China.
Answer 2)
The countries have various kinds of the resources in varying amounts which helps in
the determination of the kind of the products that would be produced by the country.
Combination of the resources is termed as factor endowment of a country. Australia possess
the rich supply of the natural resources like the coal along with the iron ore that have enabled
in the development of the country. The minerals are exported to various countries of the
world that have helped in boosting the economy of Australia. Australia have a great deal of
the agricultural land that have helped it in producing the goods that needs large amount of the
agricultural land. The presence of the fertile lands in Australia have enabled it in growing
various varieties of the grain that have provided the country with the steady economic
growth. Japan on the other hand have the highly skilled workforce and they take recourse to
the latest technology for the production of the cars along with the electrical equipment
(McGovern, 2018). The remarkable motivation existing among the labour force of Japan
have ensured the success of the corporations within Japan. There exists the strong sense of
the loyalty among the workers that have aided the companies in Japan in proving itself in the
arena of manufacturing (Mofa.go.jp., 2020). There exists a small percentage of the workers
who are interested in changing the jobs and it have provided the impetus for the economy of
Japan. China is known for the large population and it supplies cheap labour that enables the
production of the textile along with the footwear products. China have emerged to become
the manufacturing leader that have created the name of the country before the other countries
of the world. It have the low cost workforce that have helped the country in making the
investment in the area of the industrial infrastructure (Burstein & Vogel, 2017). The people

3
INTERNATIONAL BUSINESS
have the entrepreneurship skills in China that have helped in offering support to the industries
that are present in the country.
The factor endowments have a reflection on the trade patterns of a country. A country
have the higher factor endowments can engage itself in the exports that can provide it with a
supremacy over the other countries of the world. The countries that have the diverse factor
endowments are wealthier and they are able to produce more amount of the goods when
compared to the countries that have the small factor endowments. It can aid in the production
of the surplus goods along with the services that can help a country in carrying out the trade
relations with the various other countries of the world (Viner, 2016). It can cause an increase
in the exports of a country that can aid it in making the profits in the long run. It can be
concluded that the greater number of factor endowments can act as a competitive advantage
for a country that can aid in the process of its economic development.
Answer 3)
The Australian government can impose the barriers to the trade so that it can aid the
country in getting the political along with the economic benefits. The government of
Australia can make use of the Goods and services tax (GST) on the locally produced goods
that can aid in the economic growth of the country. The goods that are entering Australia
have to be properly labelled that can help in establishing the authenticity of the products that
are being imported within the boundaries of the country. The tariffs can be imposed by
Australia on high range of the products like the beef, sheep along with the meat that can help
the country in making the profits from the agricultural exports to the other countries
(Dfat.gov.au., 2020). It can help in providing the better outcome for the country that can
increase the economic power of the country in the long run. The goods that are imported in
Australia need the classification and the process of the self-assessment that is undertaken by
the importers can act in the economic interests of the country. The penalties are imposed on
the parties who provide the misleading and the incorrect information that helps in
safeguarding the economic interests of the country. The trade protectionism policy can help
Australia in restricting the imports that can aid in the development of the new industries
within the framework of the country. It can restrict the imports from the other countries that
can help in the economic growth of Australia. It can aid in the creation of the jobs and
increase overall wealth of Australia (Abf.gov.au., 2020). It can aid Australia in getting the
comparative advantage as it can make the country to focus on the production of those goods

4
INTERNATIONAL BUSINESS
which it have in ample amount. It can increase the standard of the living of the people in
Australia that can provide the boost to the economy.
The implementation of the trade barriers can serve the political interests of a country
and it can enable a country in carrying out the trade with the other countries with whom it is
on the even terms. The free trade policies can be practices with the allies of the country that
can be instrumental in serving the political aims of a country (Neary, 2016). The policy of
the selective protectionism can prove to be helpful for a country and it can help in the
maintenance of the political interests of the country. The trade barriers can help in providing
the protection to the intellectual property of a country that can help in the maintenance of the
safety in a country. It can be instrumental in protecting the information of the corporations
that can work to the benefit of a country. It can help in offering protection to the natural
resources of Australia that can aid in the economic prosperity of the country. It can help
Australia in earning the revenue that can be utilised for serving the political purposes in the
country.

5
INTERNATIONAL BUSINESS
References
Abf.gov.au. (2020). Tariff classification. Retrieved 28 March 2020, from
https://www.abf.gov.au/importing-exporting-and-manufacturing/tariff-classification
Aph.gov.au. (2020). 4. Possible implications of 'Brexit' for Australia's trade with the UK and
the European Union – Parliament of Australia. Retrieved 28 March 2020, from
https://www.aph.gov.au/Parliamentary_Business/Committees/Joint/Foreign_Affairs_
Defence_and_Trade/tradewithUK/Interim_Report/section?id=committees
%2Freportjnt%2F024101%2F25068
Burstein, A., & Vogel, J. (2017). International trade, technology, and the skill
premium. Journal of Political Economy, 125(5), 1356-1412.
Business-standard.com. (2020). US and China are fighting a trade war and Australia is
reaping the benefits. Retrieved 28 March 2020, from https://www.business-
standard.com/article/international/us-and-china-are-fighting-a-trade-war-and-
australia-is-reaping-the-benefits-119090900101_1.html
Dfat.gov.au. (2020). Retrieved 28 March 2020, from http://www.dfat.gov.au/tradematters/
McGovern, E. (2018). International trade regulation (Vol. 1). Globefield Press.
Mofa.go.jp. (2020). Retrieved 28 March 2020, from https://www.mofa.go.jp/region/asia-
paci/australia/study0504/chapter4.pdf
Neary, J. P. (2016). International trade in general oligopolistic equilibrium. Review of
International Economics, 24(4), 669-698.
Viner, J. (2016). Studies in the theory of international trade. Routledge.