Can you identify international trade policies and agreements that are impacting Australia’s international marketing opportunities?
The Australian government has been a signatory to trade agreements such as bilateral and free trade agreements. It has existing vital agreements with other partners and is currently involved in other trade policy negotiations. These agreements have influenced the government’s market opportunities provided by these conventions. Australia has been involved in free trade agreements creating binding contracts that enable preferential access to the signatories’ markets. Two or more countries normally sign free trade contracts to enhance economic activities between member states.
In the early 1980s, the Australian government signed a bilateral agreement with New Zealand known as the Australia New Zealand Closer Economic Agreement. Later, this agreement was recognized by the World Trade organization as a form of the free trade agreement, which allowed a two-way trade of goods and services between the two countries. This issue led to the growth of trade activities between the two countries.
In 2003, Australia signed a treaty with Singapore that provided liberal access to a range of services. The treaty led to the development of a viable business environment for legal, financial, and educational services. Besides, the agreement opened up business opportunities to market technical know-how or intellectual assets. The telecommunication policy, customs procedures, procurement rules, and other business standards were set to enable a smooth flow of business between Singapore and Australia. Consequently, the standards of economic activities were significantly improved.
The Australian-Thailand free trade agreement created an avenue for the growth of Australians’ market opportunities in South East Asia. Thailand created a market for investment and larger product trade volume as the agreement provided for the reduction of trade barriers such as trade tariffs and work permits. It also created a policy that ensured the non-discrimination of Australian businesses and investments. An Australia-United States free trade policy was signed soon after its agreement with Thailand. The agreement was motivated by the need to improve business mobility between the two countries since the United States provided wider market opportunities. Due to the improved regulatory procedures, their relationship and investments were enhanced.
In 2009, a trade agreement that provided a significantly enhanced market for the Australian agricultural products was signed with Chile. The creation of this treaty was meant to strengthen their free trade within the current regime and even more improved terms in the future. Another free trade agreement entered into by Australia is the Australia-New Zealand free trade convention (ASEAN).
This commitment was created to enable the lowering of trade tariffs, and in some cases, eliminating export trade tariffs. The wiping out of the tariffs creates a more predictable environment for the performance and increase in return on investments made within the region. The policy created an avenue to tap the international supply chains between the several countries in the region party to this agreement. The territory enabled economic cooperation and the exchange of business agendas providing a platform for economic growth.
The free trade agreement between Australia and Malaysia was affected in early 2013. Since it was similar to the Australia-New Zealand agreement, this treaty enabled the elimination of major trade barriers, mainly in the form of tariffs. Besides, there was a simplified administration of the workforce within several industries in the two countries. The mobility of labor created significant gains in the expansion of investment and marketing of services through free access to vital economic drivers such as tourism, research and development, mining, and professional services.
What evidence do you have of Australia negotiating solutions to new and emerging issues for international markets?
The Australian government has prepared itself to tackle new and emerging international issues through the existence of free trade agreements. For instance, the trade agreement with Chile was created proactively. The phasing out of trade tariffs on merchandised goods has been gradual and is expected to be completed within the next few years. In this regard, the elimination will see through a more committed approach to the improvement of export and import goods since the goods will not be duty chargeable.
The Chilean treaty provides for the securing of liberal trade and investments with Australia. It also encompasses the protection of intellectual rights such as trademarks and copyrights. The ASEAN treaty continues to provide a platform for more economic engagements within the territorial countries. The cooperation is aimed at delivering real commercial gain for Australian exporters and investors.
Australia has indicated the goodwill to create more favorable terms of trade with willing partners. It has committed itself to track any upcoming opportunity in free trade arrangements with other countries. Several agreements between Australia and other countries such as China, India, Indonesia, Japan, and Korea are in progress. Other territorial agreements that are currently being negotiated are the Pacific and the Trans-pacific agreements. These are aimed at improving the market opportunities for the country’s products and services within the regions.
What steps would you take to analyze successes and performance gaps to cause and effect, and use this information to improve the strategic performance of a company?
The success and performance gaps of a company can be analyzed through several mechanisms. First, a review of the global market conditions is conducted to assess the economic environment. The research aims at identifying opportunities to explore their probable contribution to the success of the company. An analysis of the impact of economic, political, and socio-economic factors that affect the company’s marketing opportunities can be done. This will help establish a market trend and identify the relevant business needs for any venture. For instance, emerging electronic markets that can shape the business direction and contribute to the company’s success should be researched.
Risk factors affecting the company’s trade can be detailed through analysis and establishment of the threshold of political and financially acceptable. Legal and regulatory challenges to potential markets, such as trade barriers, should be identified and rated. These risk factors must be related to the business cycles and their impacts on the company’s success estimated. For that reason, the risks that are exposed to businesses can be effectively countered.
Analyze and rate the acceptability of political, financial stability, and corruption risk factors for one potential market for a company that you know. (Based on China)
The suitability of the opportunities in the improvement of the company’s strategic performance is measured in terms of the likely fit to overall business objectives. The impact of the opportunity on the company’s business and customer base must be vetted. The financial viability of the opportunities is assessed in terms of costs, benefits, and risk factors and the expected return on investment predicted. Consequently, the opportunities are ranked in terms of viability and contribution to the elimination of the performance gap. As a result, such issues will lead to the improvement of business gains and success.
Many risk factors affecting enterprises have been felt globally since the globalization of markets. The manufacture of cars has been a Japanese economic stronghold whose viability depends on the Chinese ability to extinguish its political feuds. After Japan created political rows with China following the purchase of several islands East of China, Nissan has been forced to deal with a high level of political risk. Sometimes the carmakers have been forced to suspend production due to the political volatility of the region.
The global financial instability caused by the financial crisis of 2007 would have led to the collapse of the world economy by closing off all markets. The political disputes led to a drop in the volume of Chinese car sales hence, economic instability in general since the two countries mainly specialize in the motor industry. The corrupt dealings in the governments have led to an increased risk of investments. In the overall scene, the motor industry can accept medium-level financial and political risks. Heightened levels of risks would lead to the collapse of Nissan, and maybe the motor industry as a whole since other companies will be similarly affected.
Evaluate an international marketing opportunity to determine its impact on current business and customer base in a company that you know
The main strategy that Chinese automakers can use to build their competitive marketing opportunities is through venturing into foreign markets. Entry into international trade involves the establishment of trade partners in industries throughout the world. Auto manufacturers such as Shanghai Automotive Industry Corporation would take advantage of the growing size of the Chinese market to attract foreign partners like Germany from whom they can share new technologies and managerial strengths.
The Chinese can establish new subsidiaries, acquire rights to manufacture German cars, or build joint ventures. The trade between China and foreign countries will create more opportunities to widen and maintain their customer base while eliminating the threats to their businesses. This international diversification strategy will create a source of strategic competitiveness and significantly higher returns.