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.
Athukorala, P 2012, Asian trade flows: Trends, patterns and prospects, Japan and the World
Economy, Vol.24, pp.150–162.
Aggarwal, V. K. & Koo, M.G 2006, The evolution and implications of BTAs in the
Asia-Pacific, in Vinod K. Aggarwal and Shujiro Urata (eds) Bilateral Trade Agreements in the Asia-Pacific, London, Routledge, 279– 99.
Baldwin, R.E 2006, Multilateralizing regionalism: Spaghetti bowls as building blocs on the path
to global free trade, The World Economy, Vol.29, No.11, pp.1451– 1518.
Bergsten, C. F 2007, Toward a free trade area of the Asia Pacific, Policy Briefs in
International Economics, Washington, DC: Peter G. Peterson Institute for International Economics, No. PB07-02 (February).
Capling, A. 2008, Preferential trade agreements as instruments of foreign policy: an Australia–
Japan free trade agreement and its implications for the Asia Pacific region, The Pacific Review, Vol.21, No.1, pp.27-43.
Crawford, J-A & Fiorentino, RV 2005, T he Changing Landscape of Regional Trade Agreements
Geneva, World Trade Organization.
Corish, P 2006, Free trade: the way forward, National Farmers’ Federation Opinion Piece.
Desker , B2004, In defence of FTAs: from purity to pragmatism in East Asia, The Pacific
Review, Vol. 17, No.1, pp.3-26.
Hamanaka, S 2012, Evolutionary paths toward a region-wide economic agreement in Asia,
Journal of Asian Economics, Vol. 23, No. 2, pp. 383-394.
Kawaia, M & Wignaraja, G 2011, Asian FTAs: Trends, prospects and challenges, Journal of
Asian Economics, Vol. 22, pp.1–22.
MarketLine Industry Profile 2014, Dairy in Asia-Pacific, Retrieved on 5th May 2015
Pempel, T. J & Urata, S 2006, Japan: a new move toward bilateral trade agreements, in Vinod
Aggarawal and Shujiro Urata (eds) Bilateral Trade Agreements in the Asia-Pacific, London, Routledge, 75–94.
Plummer, M 2008, Best practices in regional trading agreements: an application to Asia, World
Economy, Vo.30, No.10, pp.17691–17771.
Productivity Commission 2004, Australian and New Zealand Competition and Consumer
Protection Regimes; Productivity Commission Research Report, Retrieved on 5th May 2015 from www.pc.gov.au/study/transtasman/finalreport/transtasman.pdf
Tonkin, B 2008, IBISWorld Industry Report A0160: Dairy Cattle Farming in Australia,
Yoichiro, S 2006, Japan–Australia relations: friends in search of binding bonds’, in Yoichiro
Sato and Sato Limaye (eds) Japan in a Dynamic Asia: Copying with the New Security Challenges, Lanham,VA, Lexington Books, 199–224.
World Trade Organization 2005, Regional Trade Agreements, Retrieved on 5th May 2015
from www.wto.org/ englishltratop_e/region_e/region_e.htm