The paper "Effect of Economic Integration on Industrial Firms in Australia and China" is a perfect example of a macro & microeconomics case study. The need to exchange goods and services amongst people with different wants has necessitated advancements in trade, both regionally and internationally. Different companies in different industries in every country compete in an effort to supply the products that can satisfy the diverging and insatiable wants every day. Firms trade with each other across borders of the country to strengthen, borrow and look for competitive advantages in terms of quality, quantity, price and other technological advancements. However, there are certain constraints in doing this trade rather than normal costs.
The constraints, in this case, are those that are related to the government through its intervention in trade. According to Dee (2005), government policies across borders affect trade in various ways and this directly affects the firms in any industry in a country. Nevertheless, there have been calls by economists, majorly, for nations to embrace free trade in order to boost economies and further consumer satisfaction in the product market. One of the ways for free trade is the integration of countries economically. This paper seeks to describe the economic impacts on industries upon the integration of countries.
With reference to a particular industry in Australia and China, the paper will ascertain the effects of the integration of the two countries on the industry. This will include well-illustrated implications to the particular industry where Australia is importing products. Finally, the paper will adopt a reliable conclusion that can form the basis for future analysis and information. Discussion Economic integration is the process whereby two or more countries from a region or different regions come together to make some economic arrangements to eliminate and/or reduce trade barriers.
It also involves making arrangements for coordinating both the monetary and fiscal policies within the integrating countries.
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