The paper "International Trade and Payment" is an outstanding example of an essay on macro and microeconomics. Australia is aggressively engaged with the global world not only due to its people who have their origins from many parts of the world but also long-term recognition that its security and prosperity are integrally connected to global engagement. Australia is committed to creating a rules-based international order that advances as well as protects the interests of all people and nations (Kunkel, 2002). The most prevalent economic integration or coalition is known as the free trade agreement that provides a free trade area among member states.
Regional and bilateral agreements have proliferated since the 1990s especially in the Asia-Pacific region. An increased economy means loss of control in the domestic market by the implementing country. Elimination of barriers to regional trade can lead to increased competition and loss of a first place to the local industry to international competitors. The effects of an open economy can be seen in the declining automobile manufacturing industry in Australia following the reduction of tariff on automobile imports.
The growth in the economy has been accentuated through globalization and regional as well as bilateral integration (Dollar & Aart, 2004). However, the elimination of trade barriers and increased globalization have led to rising inequality and increased challenges in the local industry. There is bipartisanship in the economic policy of Australia leading to more economic liberalization instead of protectionist. This essay explores Australia’ s experience with Free Trade Areas and their impact on trade. Australia’ s regional and bilateral integration and its challenges Commenters and policy-makers have been cajoling Australians for long into accepting that they make up the global economy meaning accepting an entire range of new realities.
The main theme of the pro-globalization perspective is that Australia has permitted these realities and adapted perfectly to globalization through embracing economic liberalism (Conley, 2002). Global trade and investment architecture are very dynamic. It is directed by the needs of the commercial environment and propelled by various policy and economic developments.
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