Executive SummaryThis report evaluates the opportunities that there are for Australia to exploit the massive and enticing China market. This is with particular reference to its vast crude oil deposits that are still largely unexploited. The report begins with a brief introduction that highlights where the world stands in the market liberalization and generally globalization. The report then analysis the destination market, in this case China. The focus is on existence of demand for crude oil and how the infrastructures have been laid down to support business. An evaluation of various attributes is made.
Major areas of concern that have been discussed include international openness on trade policy, tax law and practice, adherence to the rule of law, fiscal and monetary administration, political stability as well as corruption levels. An in depth evaluation is made regarding the product’s competitive advantage in the destination market. The factors that would give the product – in this case crude oil, a competitive edge are well highlighted and explained. This has been done in light of aspects inherent in other producers of the same product. An assessment is made regarding China’s trade restrictions and tariff policy.
The analysis points out at the advancements that the country has made in eliminating the trade barriers as well at pointing out at areas where the country has lagged behind in trade liberalization. Finally a forecast is made regarding how the trade would be beneficial to both countries and especially Australia. A trend analysis from past data has been applied to predict volume of trade that is likely to be witnessed in the future. A table of data is presented to exemplify trade interaction between the two countries. IntroductionWe are living in an age when the world is economy is geared towards market liberalization.
Globalization is the typical business language of the twenty first century. State governments and private corporations are doing everything possible to capitalize on market openings created internationally by this new development. National governments are burning mid-night fuel either in an effort to revise their trade policies; sign a regional integration treaty; be a member of the world trade organization or do anything that will help the country gain business in the international arena.
The result is the voluminous level of business activity we now witness. China Market AssessmentChina has in the recent decades drawn the attention of major economies and economic analysts thanks to its rapid economic growth. This state has to a large extent been propagated by the country’s huge population base that offers a big market for goods and services. The country is today acknowledged as one of the most significant economic and political heavy weights in the world. In fact, any economic analyst of the modern times would ignore the China’s influence to world economy at his/her peril.
This is justifiable given the level of economic activity taking place in the country today, and the effect that has brought to the world economy (World Bank, 2006). Among the notable effects is unquestionably the energy demands that the country requires supporting the growth. In the years preceding the rise in petrol prices has among other factors been linked to the excess demand by China.