• Internal Code :
  • Subject Code :
  • University :
  • Subject Name : Economics

Knowledge Review and Reflection

Table of Contents

Introduction.

Body.

Free trade policies.

Globalization and open economy.

Conclusion.

Recommendation.

References.

Introduction to Theories of International Trade

Despite unprecedented steps and immense amounts of precaution being taken against the spread of the virus, COVID-19 showed its impact which was just devastating. The two major sectors that were impacted are the movement of people becoming restricted and all supply chains got disturbed rather than disrupted. Coronavirus heavily affected the Australian economy by having a hard conflict between meeting the demands and pricing of the goods and services in Australia. An estimated loss was projected in the sector of travel and tourism and also the sectors which generate revenue on that basis. All the domestic sectors like students and non-student businesses that required the movement of people from place to place were hindered rapidly. In Australia, the pandemic phase mainly impacted the food and fiber supply chains. Initially, there was a phase that consisted of a spiked rise in buying goods which in turn impacted the sales of the food industry to compensate for the demands.

However, a lot of markets began to close like seafood exports for china were closed. Many companies in different sectors faced hurdles as people started working remotely which affected various programs and projects with their timeline and perfection or requirement of the work. There was a lot of uncertainty and volatility in the working environment. COVID-19 has changed the world around us and the understanding of life within us. With respect to globalization, the pandemic has disrupted the international orders in various aspects like politically, economically, legally, and socially. The priorities have changed from being capitalized to neo-liberal, giving more importance to work-life balance than giving more significance to work, from globalization to nationalization.

Body of Theories of International Trade

The Australian approach to the regulatory policies and reforms is focused on the identification of maintenance and strengthening the openness of their markets at the international level. The federal system of the government takes care of the other challenges by strongly characterizing the Australian geographic size and isolating them physically from other economies (Romano, 2020). Australian governments, on 1st April, announced the measure in order to help and secure freight access to Australian agriculture and fisheries exporters. A new mechanism of $110 million international freight assistance will assist the above two domestic industries by helping them to export their high-quality products into the key overseas market, at the same time bringing back the medical supplies, medicine, and equipment in the return fight (Romano, 2020).

Exporters were provided with access to reach the department of Agriculture, water, and the environment with the required phone numbers. The government also announced an increase in funding for the Export Market Development Grant (EMDG). It was announced that the scheme will have the funding increased by $49.8 million in 2019-20 financial year. This will help to get reimbursements for the exporters and tourism businesses who have invested in the marketing of their products and services to the whole world (Corbin and Perry, 2019). The Government also committed an additional $60 million and brought EMDG funding to the highest level in more than 20 years at $207.7 million for the 2019-20 financial year.

Free Trade Policies

Australian free trade agreement is nothing but an international trade agreement which includes some of the legal rules and regulations to be followed in between the two or more economies in terms of their investment. It also includes the removal of several barriers in between the two economies with respect to trading goods and services (Romano, 2020). Such type of trade agreements gives business to the Australian government and helps consumers to improve in their access to a wide range of differently priced goods and services. New technologies and innovative practices are also brought into place to improve the overall business strategy. It helps Australia to be beneficial when it comes to foreign investments (McKibbin and Fernando, 2020).

There are in all six trade agreements that Australia has in active form with other countries and there are few which are in negotiation. The FTAs consist of legal bindings that each member is bound to follow in order to access markets overseas and facilitate their business. The trade agreements are already in force in Australia (McKibbin and Fernando, 2020). Australia New Zealand Closer Economic Relation Trade Agreement, Australia-US free trade agreement, Australia-Thailand Free Trade Agreement, Australia-Chile Free Trade Agreement, etc.

FTA happened to be very beneficial for the importers, exporters in order to reach the international markets and also provide them with better competition, even various producers and investors are provided with better prospects which enhance their business and decreases the expenses in regards to Australian business and consumers (Romano, 2020). According to Mr. Latham, the agreement has flaws that are many; however, it is expected to have net economic advantages for the country that needs to be supported. After this conversation he gave an approval to the 1,100-page document. In a few years, Australia has become one of the largest and competitive nations from an inward-looking nation. In order to expand their business in overseas market Australia has been the most aggressive negotiator with respect to there free trade agreements.

An offer of free trade pact which was proposed by President Bush was rejected by the Prime Minister Paul Keating, which was further signed by the forthcoming president considering the close relation in between United states and Australia, but just the next day a labor party leader Mark Latham, vowed to block the approval and said that he is not interested in political compromise (Corbin and Perry, 2019). An intensifying trend in U.S business reference gives them long term benefits and almost cultural change such as I.T systems and human resource management by implication of FTAs. It also tells them about the friendly nature of Australia and indicates to the America and their investors about a very close business environment. On the other hand, opponents said that the pact doesn't do justice to its trade billing. This lead to bock the trading in between the two countries with respect to farming and beef export (Hannan, 2018). 

Globalization and Open Economy

The pandemic COVID-19 has run a new wave to put an end to globalization, but the current data says that the leaders should plan for their businesses such that they could balance both globalization and anti-globalization pressure. The vigorous decline is caused by the crisis and necessity of the public health requirements at the international level (Hannan, 2018). According to the current forecast, it is seen that there is a 13-32% decline in merchandise trade. There is also a 30-40% reduction in foreign direct investment and a 44-80% drop in international airline passengers in 2020. Hence these numbers suggest that there is a major rollback in the trend of globalization but there is no signal of the fundamental collapse of the international market yet.

The steep downfall and collapse of international travel have damaged the ways for the growth of globalization across the countries. Tourism contributes to a major global output other than automotive manufacturing. International travel is an essential aspect to promote business and trade globally by the countries. Every country has applied for limitations on international travel as of late April 2020. Around 45% of countries had ceased the entry for foreign visitors and prospective students as we have hit education as well at the university level (McKibbin and Fernando, 2020). Airlines have reduced to 90% of seats on international flights and 62% on domestic.

Free trade is helpful for the global trade market to tender these conditions the countries face economic problems and at this pandemic condition, there are additional issues. The problem arises due to an unplanned use of limited resources. And the economic problem arises because although the needs of the people are endless, the recourses available to satisfy that are limited (Romano, 2020). Australia as a country has quiet strong regulatory institutions and are capable to cope up with responding to the any global changes but this pandemic has hit their steady growth in such a way their overall GDP growth has reduced and is significant in the history of their economy. In spite of the economic policies on free trade agreement or any other business strategies, nothing could stand in front of COVID-19 destruction. As per the Australian taxation office, they reveal that 6% of the workers have lost their jobs over one month. Business concerning accommodation and food and art and recreation industries are smashed by the impact of coronavirus (Hannan, 2018).

Conclusion on Theories of International Trade

The outbreak of COVID-19 has disrupted globalization in every sector starting from the food industry to tourism. There is a high demand but limited supply. Australian strategies of free trading did help them to some extent by exchanging medicine and equipment against their goods. However, we see nothing could stop the downfall of every business at the international level. Fortunately or unfortunately it changed the priorities of every human being. People started giving more importance to their work-life balance rather than solely their work. Although a portion of the mass is badly smashed by the recession. Thus, 2020 is the disastrous year in the era of globalization.

Recommendation on Theories of International Trade

Free trade and what are the advantages because it allows any two countries to work in collaboration with each other which in turn leads to overall growth. There have been major changes in customer expectations from the Grocery brands paying more focus on social distancing and sanitization. The customers seeking access to websites and delivery processes were strained so the main focus became availing the minimum required products in the safest possible manner. The increased focus became the opening hours, delivery options, and availability of essential items like sanitizer, tissue papers, etc. in no grocery markets (Romano, 2020). Keeping the above condition in mind free trade would help every country to get hold of their business and take care of the basic amenities and necessities hand in hand. There is an increase in the trade completion and a significant decrease in the prices across the world. This happened to be beneficial for the consumers as they could plan their expenses with the decreased in their income. There is also a steep rise in the competition amongst the efficient foreign firms. The change in globalization has rendered the entry of lowest priced goods to all the market places. Purchasing power has hiked significantly due to lower consumer prices which has allowed every individual to buy more goods with fewer dollars (McKibbin and Fernando, 2020).

References for Theories of International Trade

Corbin, L., and Perry, M., 2019. Turbulent Times for FTAs: Australia and the Region. In Free Trade Agreements (pp. 1-10). Springer, Singapore.

Hannan, K., 2018. Free trade agreements: How Australian wine benefits from FTAs. Wine & Viticulture Journal, 33(3), p.64.

McKibbin, W., and Fernando, R., 2020. The economic impact of COVID-19. Economics in the Time of COVID-19, 45.

McKibbin, W.J., and Fernando, R., 2020. The global macroeconomic impacts of COVID-19: Seven scenarios.

Romano, F., 2020. An Estimate of the Economic Impact of COVID-19 on Australia. Available at SSRN 3581382.

Romano, F., 2020. Could COVID-19 Lead to Another Great Depression? Evidence from the USA and Australia. Evidence from the USA and Australia (May 24, 2020).

Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Economics Assignment Help

Get It Done! Today

Applicable Time Zone is AEST [Sydney, NSW] (GMT+11)
Not Specific >5000
  • 1,212,718Orders

  • 4.9/5Rating

  • 5,063Experts

"

5 Stars to their Experts for my Assignment Assistance.

There experts have good understanding and knowledge of university guidelines. So, its better if you take their Assistance rather than doing the assignments on your own.

What you will benefit from their service -

I saved my Time (which I utilized for my exam studies) & Money, and my grades were HD (better than my last assignments done by me)

What you will lose using this service -

Absolutely nothing.

Unfortunately, i had only 36 hours to complete my assignment when I realized that it's better to focus on exams and pass this to some experts, and then I came across this website.

Kudos Guys!

Jacob

"

Highlights

  • 21 Step Quality Check
  • 2000+ Ph.D Experts
  • Live Expert Sessions
  • Dedicated App
  • Earn while you Learn with us
  • Confidentiality Agreement
  • Money Back Guarantee
  • Customer Feedback

Just Pay for your Assignment

  • Turnitin Report

    $10.00
  • Proofreading and Editing

    $9.00Per Page
  • Consultation with Expert

    $35.00Per Hour
  • Live Session 1-on-1

    $40.00Per 30 min.
  • Quality Check

    $25.00
  • Total

    Free
  • Let's Start

Get
500 Words Free
on your assignment today

Browse across 1 Million Assignment Samples for Free

Explore MASS
Order Now

Request Callback

Tap to ChatGet instant assignment help

Get 500 Words FREE
Ask your Question
Need Assistance on your
existing assignment order?