Essays on How Australian Dairy Firms Will Benefit from the Free Trade Agreement Case Study

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The paper "How Australian Dairy Firms Will Benefit from the Free Trade Agreement" is a perfect example of a business case study. According to the report, even though Asia particularly the Asia-Pacific nations are considered a latecomer as economic potential, the region has emerged as a significant forefront in free trade agreement activities especially for the Australian Dairy sector which has experienced some decline in performance. According to this report, the growth of developing economic trade agreements in Asia-Pacific has been a major topic amongst the policymakers regarding the developed countries in this region especially Japan, South Korea and China.

Most international trade experts believe that these countries can provide an important for Australian dairy products which have faced volatile external forces in the last five years. The signing of free trade agreements between Australia and Japan, South Korea and China in 2014, has provided hope for the Australian Dairy sector. Therefore, this report explains how Australian firms in the Dairy sector will be benefitted from free trade agreements. The topic will be discussed in relation to International Business theories. Introduction Today, the world of business has been marred with trade relationships and collaboration between countries in what can best be described as 'free trade excitement’ .

There has been an increase in trade collaboration in recent years, and between a period of one year, 2004 and 2005, World Trade Organization was notified by 44 regional trade agreements with an intention to create free trade (Crawford & Fiorentino, 2005, p. 14). WTO (2005a) stated that this increase in such relationships adds the number to nearly 300 in terms of regional trade agreements that are existing.

The situation signifies the most productive period of trade agreements in an account of the World Trade Organization and General Agreement on Tariffs and Trade (WTO, 2005b). The impacts of such trade agreements based on economic factors are overwhelming. Research conducted by the World Bank in 2005 held that almost 40% of global trade currently happens under the arrangement of preferential trade.

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