The paper "Trade Liberalization in Australia " is an outstanding example of a marketing literature review. In previous decades, Australia has undergone various rapid changes. In the process, the competition with its Asian pacific counterparts such as India, China and South Korea has intensified in terms of trade (Department of Foreign Affairs and Trade 2009, p. 5). There has been rapid development, huge growth in demand and capacity, improved commodity prices and growth of global trade. The country realized due to comparative advantages they cannot satisfy all the societal needs, therefore have to depend on other countries to supply goods they are not endowed with.
Hence, the country enforced trade liberalization policies from the 1970s which has enabled it to open its market for global trade (Murtough, Pearson & Wreford 1998, p. 1). Since then, Australia has imported goods from low-income countries to satisfy product demands. Based on the information, this report will focus on trade liberation in Australia. Also, the report will discuss the evolution of Australian trade and labour market policy, its benefits and effects on trade liberalization on the economy, globalization and individual competitive firms and industries.
To put this report into perspective, it will first define trade liberalization. 2.0 Definition and overview According to Pugel (2007), trade liberalization is defined as the process of removing or reducing barriers or restrictions on the free exchange of products between different countries. Such a process entails eradication or just the reduction of non-tariff such as quotas and licensing rules, and tariffs such as duties. WacZiarg & Welch, (2008, p. 189) contend that this has been adopted by many countries on the account that advocates of this school of the law believe that trade liberalization reduces consumer costs, fosters economic growth and creates efficiency.
There are two simple means to understand trade liberalization; this topic can be understood through an analysis of comparative advantage and analysis of the effects of tariffs (Blinder 2008).
Banks, G 2003, Gaining from trade liberalization: some reflections on Australia’s experience,
Productivity Commission, pp.1-17.
Blinder, A.S 2008, "Free Trade", In David R. Henderson (ed.), Concise Encyclopedia of
Economics (2nd ed.), Indianapolis, Library of Economics and Liberty
Department of Foreign Affairs and Trade (DFAT), 2009, Benefits of trade and trade
liberalization, Centre for International Economics Canberra & Sydney, pp.1-50.
Fazzone, P.B.2012, The Trans-Pacific Partnership—Towards a Free Trade Agreement of Asia
Pacific? Georgetown Journal of International Law, Vol. 43, No.3, pp. 695–743.
Ghani, G.M 2011, The Impact of Trade Liberation on the Economic Performance of OIC
Member Countries, Journal of Economic Cooperation and development, Vol.32, No.1,
Kneller, R, Morgan, C.W & Kanchanahatakij, S 2008, Trade Liberalization and Economic
Growth, World Economy, Vol. 31, pp. 701-719.
Murtough, G, Pearson, K & Wreford, P 1998, Trade Liberalization and Earnings Distribution
in Australia, Industry Commission Staff Research Paper, AGPS, Canberra, pp.1-67.
Pugel, T. A 2007, International Economics, 13th edition, New York, McGraw-Hill Irwin.
Steven, B, Garretsen, H, Marrewijk, C.V, Witteloostuijn, A.V 2006, Nations and Firms in
the Global Economy : An Introduction to International Economics and Business,
Cambridge: Cambridge University Press.
WacZiarg, R & Welch, 2008, Trade Liberalization and Growth: New Evidence, World Bank
Economic Review, Vol. 22, pp187-231.
Wniters, L.A, 2004, Trade Liberalization and Economic Performance: An Overview,
Economic Journal, pp. 114-127.
Appendix 1: shows minimal performance of dairy industry during protection
Appendix 1: shows high performance of dairy industry during deregulation
Source: (Department of Foreign Affairs and Trade 2009, p.45)