The paper "Australia’ s Active Involvement in the Trans-Pacific Partnership " is a great example of a business case study. Although most Pacific countries are believed to be latecomers in terms of economic growth, economic experts claimed that the region emerged to have the potential for business in the late 20th century (Fazzone 2012: 696). The leaders from these nations, particularly Australia realized that trade liberalization can enable the country to realize economic prosperity. As a country which had struggled after the economic crisis of 2008, the Australia government believed there was a need to cooperate with other countries to form strong trading blocs (Li 2012: 1).
In recent years, Australia has participated in the drafting of various trade agreements to open its boundaries for international business. Some Australian policy analysts have argued that Australia’ s active involvement in the Trans-Pacific Partnership (TPP) agreement will not only ensure new market access opportunities for Australian exporters and investors but will also help to reshape its post-mining boom economy (Rimmer 2016: 632). In this paper, the essay will argue in support of the Australian policy Analysts.
To put the essay into context, this paper will describe the Trans-Pacific Partnership and critically explain how it will shape Australia. The Trans-Pacific Partnership abbreviated as TPP is a form trade agreement which has been created among 12 countries within the Pacific Rim region (Amari 2016: 11). Capling & Ravenhill (2011: 554) claimed that this trade agreement started as Trans-Pacific Strategic Economic Partnership Agreement in 2005 and signed by Brunei, Singapore, Chile and New Zealand. In 2008, more nations joined the formulation of the agreement bringing the number to 12. The countries which joined in 2008 comprise of Australia, United States, Canada, Malaysia, Peru, Vietnam, Mexico, Japan and Peru (Amari 2016: 11).
After 7 years of the negotiation and consultations, the countries signed the final plan on 4th February 2016. The draft is presently waiting for the consent take into effect (Higgott & Stubbs 2016). The trade agreement has 30 chapters and aims at promoting the economic prosperity, Improving innovation, competitiveness and productivity, supporting job creation and retention, improving the living standards, creation and retention of jobs, decrease the level of poverty, promoting good governance, transparency, environmental protection and enhanced labor (Higgott & Stubbs 2016).
In addition, the Trans-Pacific Partnership has measures for lowering tariff and non-tariff trade barriers to trade to its members. Australia experienced one of the most debated mining-boom from 2005 to 2012 (Bramble 2015). The country underwent changes in major economic indicators. During the mining boom period, the rate of employment increased in Australia, hence leading to an increase in income growth. The growth of income and disposable income led to the rise in purchasing power and high consumption.
However, the post-mining boom has seen a rise in employment rates in Australia particularly among casual, unskilled and semi-skilled workers. The situation is attributed to a decrease in mining activities. Pham, Bailey and Marshall (2013) pointed out that the mining boom in Australia also led to high-cost fuel because of high demand for powering mining machines. However, the post-mining boom has seen a reduction in oil prices in Australia. The low high oil prices and low unemployment rates which came with the mining boom led to high inflation (Pham, Bailey & Marshall 2013).
During the boom, there was also a high demand for minerals such as iron ore, coal, LNG and metallurgical in Asian countries resulting in an increase in product prices. For instance, the price for iron rose from $20, $30 per tone and even further (Bramble 2015). In the post-mining boom, the prices of these minerals have declined thus decreasing the income of mining companies and individuals. As the Australia mining bubble has gone down, the real estate market has continued with the growth that began with the boom.
Bramble (2015) asserted that the deflation of the mining boom has led to an increase in prices of building, hardware and garden supplies, housewares, and electrical goods.
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