...and Sladojevic (2015) explains that when an FTA agreement is made the countries or the companies involved the deal may not be welcomed by either the parties involved but when they both work towards it the realization of the agreement it becomes easy. It is also beneficial to both the countries because it enables the citizens to move freely for the betterment of the economy (Baykitch and Sladojevic 2015). China – Australia Free Trade Agreement An example of FTA agreement is the recent china-Australian agreement. The FTA agreement is considered to be beneficial to Australia in very many ways. Ball says that given that China has a population of above 13 million it opens the market for the Australian products. China is also the second-largest economy in the world's considering that is also an important manufacturing hub for the world products. It was important for the Australia to form free trade agreement because of various factors. China is the largest trading partner to Australia (Ganz 2015). It is also a fact that the merchandise trade between Australia and China has grown tremendously with a significantly notable 18 percent increase every year for the last decade. The another major factor is the fact that over the years the investment...
Words: 2097 - Pages: 9
...urban areas. Due to China’s economic boom, China is currently experiencing a rapid movement of people from rural areas to urban areas. The article, “The End of Agricultural in China” estimates that one-quarter of China’s rural population, about 200 million people, are moving to urban areas in search of work. This movement of people has resulted in urban areas having to expand to in order to accommodate the increase in population. But as a law of physics states, with every action there is an equal and opposite reaction. Therefore as urban areas increase in size and population this has resulted in rural areas both decreasing in size and in population. As globalization becomes more common, many businesses and companies have looked to China as a country that shows a great potential for expansion and investment. As a result China is experiencing a tremendous growth in their economy. Urban areas in China have expanded with new buildings and factories being built to keep up with demand. But this urban expansion has come at the cost of losing agricultural land. Many farmers who owned land in rural areas are losing their land as the government has mandated the land be sold to the state so the state can then turnaround and sell it to companies looking to build factories in China. This had led to farmland that was once abundant with agricultural crops, now being used to house factories. As the article states, seizure of farmland is an issue in China, with a study indicating that seizure...
Words: 668 - Pages: 3
...with concerns over the near term and future prospects of the Euro Zone and the United States. Europe and the United States were drivers of economic and trade growth in the 19th and 20th centuries, respectively. The 21st century potentially belongs to BRICS and other emerging economies. 2. Country Profiles To understand and analyze BRICS as a group, it is necessary to understand how these five emerging giants spread across four continents are situated in the global context. The BRICS together accounted for over a quarter of the world’s GDP (in PPP terms) and over 40% of the global population in 2011. In terms of landmass, Russia is by far the largest in the group (it is also the largest country in the world). In terms of demographics, China closely followed by India, are the two most populous nations in the world. Together these two countries account for over one third of the world’s population BRICS, as a group, account for over 40% of...
Words: 6247 - Pages: 25
...Cigarette tax measure may have unintended consequences | | | | Matt Evans On the surface, this November's Ballot Measure 44 is simplicity itself. The measure will increase taxes on cigarettes by 30 cents per pack, as well as on other tobacco products, and the revenue raised will be dedicated to the Oregon Health Plan and tobacco use reduction programs. What could be more straightforward? However, the measure raises a host of interesting issues that voters should weigh prior to casting their votes. Most important, of course, is the core of the measure, its purpose: to raise money for the Oregon Health Plan, ostensibly to offset costs the plan incurs from smoking-related illnesses. State revenue estimators understand that anytime you raise the tax on something, you will get less of it. This is certainly true in the case of Ballot Measure 44 and its effect on cigarette smoking. In fact, the State Legislative Revenue Office estimates that cigarette use will decline about 4.5 percent due to the increased taxation. In a series of four steps over the past 17 years, Oregon has raised the tax on cigarettes from 9 cents per pack to the current 38 cents. Each of these tax increases represented a smaller amount per pack than Measure 44's 30 cents. In every instance, tobacco use has fallen by more than the current projection of 4.5 percent. In fact, tobacco use fell an average of almost 9 percent--twice the state's estimate--after those four cigarette tax increases. The...
Words: 2992 - Pages: 12
...Economic Reforms in Asia: The Indian Case Study The Asian economy has seen a rapid rise over the past decade with countries such as China, India and South Korea making major headways. China, being the leader of the group, has been largely tipped by many economists to overtake the US as the world’s superpower by 2025. Asian GDP Performance (1997-2005) Source: http://www.treasury.gov.au The success of these nations came on the back of major economic reforms which transformed these sleeping giants into what it is today. China went through a major economic reform in 1979 and soon thereafter success followed. India, followed the same path, but much later than China, and it was not until the turn on the 1990s that India went on the path of economic liberalisation. This paper will focus on the economic reforms that took place in India and its impact on the country in terms of trade and macroeconomics growth and the birth of new economy. A section of this paper will also be comparing the growth of India in comparison to its Chinese counterparts as well as discuss reasoning behind critics who believe liberalisation was not the main contributor to the growth India is achieving today. Pre-Reform Period Post independence, India saw the need to move from an agrarian economy to an industrial one and as such building its competency in crucial sectors of the economy was important. The role of government therefore included economic management...
Words: 2383 - Pages: 10
...INTRODUCTION TO CHINESE ECONOMY AND POLICIES A COMPARATIVE ANALYSIS BETWEEN THE MOROCCAN ECONOMY AND THE CHINESE ECONOMY Submitted to: Dr. Prof. XU Tongsheng Submitted by: RIFKI Nada Graduate Student Master of International Business Date Submitted: December 2, 2014 JIANGXI UNIVERSITY OF FINANCE AND ECONOMICS SCHOOL OF INTERNATIONAL TRADE AND ECONOMICS Introduction The purpose of this essay is to present a comparison between the Moroccan economy and the Chinese economy in broad lines. The comparison will focus on the analysis of the economies sectors, their respective current account balances and the business environment in each of both countries. Thesis Although both economies are quite different regarding their economy ’s structures and economic growth patterns, it is evident that the initiatives their respective governments took into joining the world’s trading system benefited their economies on the long run. The recent world crisis gave raise to new challenges for both the Moroccan and the Chinese economy and gave urge to restructure the structure of their nation’s economy. Roadmap This essay is divided in three parts. The first two part, describe respectively the Moroccan and the Chinese economies. In the last third part, I will compare both economies in regards to the information given in the first and second parts. Describing each of these two economies –in the first and second parts, I will start by giving general information and an overview of the...
Words: 6742 - Pages: 27
...Change in China trade policy before and after WTO 1. Different aspects of china WTO accessions 1.1.Trade in goods One of the major parts of WTO accessions the changes in the trade of good policy which is mainly divided into two major components which are the reduction of tariffs and the elimination of the quotas. Due to WTO accessions china is obliged to reduce or eliminate all tariffs on imported goods mostly by 2004 with special condition in industrial material which tariffs reduced to an average of 9 percent and tariffs on agricultural goods will be lowered to an average of 15 percent. 1.2.Policy on trade of services The other major component of the change in trade policy is the changes in the service sector which aim is to ensure foreign firm to have an transparent and simple process for acquiring license in various sector such as banking and insurance, legal and other professional services, Telecommunications and tourism. 1.2.1. Right to trade and distribution Right to trade is one of the most regulated change due to WTO accession as it controls the right for foreign firm to import, export or retail goods in china. In the WTO accessions it is stated that within two years (by end-2003) foreign service suppliers will be permitted to engage in the retailing of all products, within three years (by end-2004)all firms will have the right to import and export all goods except those subject to state trading monopolies (e.g., oil or fertilizers);...
Words: 533 - Pages: 3
...China Economic Reform and Opening: Some Evidents from Guangdong Province In the late 1970s, China still a developing country three decades after a revolutionary regime change in 1949, was in dire need of systemic change. The decade-long debacle of the Cultural Revolution had just ended, leaving the economy dormant and the people physically and emotionally drained. At that time the new idea of opening the country to global contacts and influences after three decades of partly self-imposed isolation seemed a no less drastic measure to China’s leaders than the original policy of economic and social closure. Other new ideas were emerging as well. Deng Xiaoping, the chief architect of China’s openpolicy and economic reforms launched in 1978, outlined a fundamentally new approach to gradual societal change. Special zones established in 1979 and special economic zones were named in 1980. Before 1979, all the import and export products has to go to HK before enter in China. China was one of the fastest growing economies in the 1980s. The average annual growth rate of GDP for China from 1980-90 was 9.5%. The corresponding growth rate for the world as a whole was 3.1 percent (World Bank 1992, 221,. table 2). The growth rate for China in 1992 was 12.6 percent. The rapid growth in China is obviously related to its relentless pursuit of economic reform, which has unleashed productive forces previously suppressed by rigid central planning. One particularly important component of...
Words: 686 - Pages: 3
...Ariana Caraza AC1204585 Assignment 5 HS150 World Civilizations China was divided for almost four centuries. It became unified in 581 with the founding of the new dynasties, Sui, Tang, and Song dynasties. During the time of these dynasties, many changes took place. There were changes in the political, social, and economic structures. The first changes took place during the Sui dynasty in 581. Additional changes took place during the Tang dynasty in 618, and the Song dynasty in 960. The Sui dynasty was founded by Yang Jian. Jian was a member of a respected aristocratic family in northern China. (Duiker & Spielvogel, 2009) Yang Jian turned to Daoism and Buddhism to unify the empire. Jian founded monasteries for both religions in the capital and assigned Buddhist monks as political advisers. A new political system was put in place; three departments and six ministries. Royal power was enhanced and the work division in the court became detailed. The traditional Jiupin Zhung Zheng (nine ranks of officials) Hierarchical system was replaced by the Imperial Examination system. ("Sui dynasty," ) The Grand Canal was constructed during the Sui dynasty; linking the Yellow and the Yangtze Rivers. The Grand Canal served many purposes. For example, it made it possible to introduce the grain and other items from the rice-rich southern provinces to the heavily populated north. The agricultural acreage was increased largely which promoted the crop yield. Advances were...
Words: 742 - Pages: 3
...www.pwc.com Global Agribusiness Monthly commentary from our Agribusiness experts around the Globe. October 2014 Contents Regional views Did you know? Publications Calendar of events Prices Global Agribusiness contacts 2 8 11 13 14 21 Regional views Overview With teams around the Globe, this document sets out to give a flavour of what our local agribusiness experts are observing in their territories. This month we are reminded of the ever present impact of volatility on Global agriculture. We have seen significant falls in dairy commodities, grains and oils in 2014 with coffee soaring in the opposite direction on the back of a drought in Brazil. The moves have happened quickly (e.g dairy down over 50% in New Zealand since February 2014 and coffee spot prices up over 30% since August 2014) and this can be difficult for farm families or small holders to deal with. For example in the UK, dairy farmers have taken to public protests and blockades. At PwC we are bullish on the long term prospects for agriculture given Global population and wealth trends however we also recognise that this future optimism can be meaningless to a farmer when short term production costs exceed selling price. Agriculture is a volatile industry and participants have to put in place their own strategies to deal with this which are right for them, be it selling forward or hedging for budget certainty, insuring where possible against crop loss, keeping a buffer of cash or liquid assets which...
Words: 9275 - Pages: 38
...Transfer of Immovable Property in India A person resident outside India who is a citizen of India (NRI) can acquire by way of purchase, any immovable property in India other than agricultural land/plantation property/farm house. He can transfer any immovable property other than agricultural or plantation property or farm house to: a) A person resident outside India who is a citizen of India or b) A person of Indian origin resident outside India or c) A person resident in India. He may transfer agricultural land/ plantation property / farm house acquired by way of inheritance, only to Indian citizens permanently residing in India. Payment for acquisition of property can be made out of: i. Funds received in India through normal banking channels by way of inward remittance from any place of India or ii. Funds held in any non-resident account maintained in accordance with the provisions of the Foreign Exchange Management Act, 1999 and the regulations made by Reserve Bank Of India from time to time. Such payment can not be made either by traveller’s cheque or by foreign currency notes or by other mode than those specially mentioned above. A person resident outside India who is a person of Indian Origin (PIO) can acquire any immovable property in India other than agricultural land / farm house / plantation property:i. By way of purchase out of funds received by way of inward remittance through normal banking channels or by debit to his NRE/ FCNR(B)/...
Words: 4627 - Pages: 19
...How did Deng’s policies lead to a phenomenal growth of the Chinese economy? China began the 20th century with a serious effort to modernize its economy and ended the century with a successful economic modernization. Since the early 1980s, China ranks among the world’s fastest growing economies. Using standards of measurement of the gross domestic product (GDP) based on purchasing power parity, the IMF ranks China’s economy a close third, after only the United States and Russia (Soled, 1993). In 1978, Deng Xiaoping took over the control of the communist party and abandoned the Maoist economic model. Deng Xiaoping is widely regarded as one of the most undisputed leader of all times. He initiated the transformation of the planned economy towards more market-oriented economy and decided to open China up to free market economic reforms and Western style capitalism (Chow, 2001). These reforms were a reversal of the Maoist policy of economic self-reliance. Successful economic development in other parts of Asia including Taiwan, Hong Kong, Singapore and South Korea, known as the four Tigers, demonstrated to the Chinese government officials and the Chinese people that a market economy works better than a planned economy (Soled, 1993). Deng realized that China needed Western technology and investment, and opened the door to foreign businesses who wanted to set up in China (Chow, 2001). China decided to accelerate the modernization process by stepping up the volume of foreign trade...
Words: 1105 - Pages: 5
...PEST analyze of cosmetics business in China. In order to reserve the objectiveness of value judgment, simultaneously, to give effective advice to the company which we selected before, we decided to use PEST to analysis environment in cosmetics industry. P “P” means political. Generally, politics will give great impact on firms’ activities. The factor includes political institution, policy and law. These elements usually influence company’s operation, thus, the enterprise should pay attention to several issues bellow: * Whether the political environment is stabilizing? * Will government policy influence laws that regulate or tax your business? * What is the government's position on marketing ethics? * What is the government's policy on the economy? * Does the government have a view on culture and religion? * Is the government involved in trading agreements such as EU, NAFTA, ASEAN, or others? While, are there any unveil fresh policies which will affect cosmetics industry in China? First, let’s focus on import tariff. Cosmetics general trade import tariff rate: 1. Lip cosmetics common tariff rate is 150%, most favored nation customs tariff is 10%, value added rate is 17%, the consumption rate is 30%. 2. Eye ophthalmic cosmetics common tariff rate is 150%, most favored nation customs tariff is 10%, value added rate is 17%, the consumption rate is 30%. 3. Point to (foot) armour cosmetics common tariff rate is 150%, most favored nation customs...
Words: 2559 - Pages: 11
...Introduction As the world economy moves towards globalization, China has become more open to trade with other countries. Its international trade volume had risen from US$20.6 in 1978 to US$1,422 billion in 2005 (Wang & Liu, 2007). Since China’s exports mainly focus on the labor intensive and resource intensive industries, this exports pattern causes a serious environmental problem in China. Green barriers become a kind of emerging non-tariff barrier which is used for the developed countries to protect their production and economic development in recent years. The main forms of green barriers include green tariff and market access, green packaging and labeling requirements, green technology standards, Green health inspection system, environmental costs and green subsidy system (China west products, 2011). China’s agricultural, mechanical and electrical products are all facing green barriers, such as pollution, noise, safety standards and recycling requirements (Wang & Liu, 2007). How to cope with green barriers becomes the biggest challenge that China faces to continuously expand its exports. The purpose of this paper is to address and analyze the green barrier issue in China and to provide my ideas and suggestions on China’s exports related to green barrier. My following analysis is mainly based on the positive effects of green barriers and the specific example of China’s tea exports as well as three policies to cope with green barriers. I feel confident that you will...
Words: 1575 - Pages: 7
...strength of a countries economy tends to speak to its place in the general importance of the world. Being economically weak a country tends to be poor and normally overlooked, while economically strong countries are able to effect other countries financially and thus tend to have much more sway in world dealings. I will discuss the two countries of China and India and look at their current economic situation and keys to their future growth. India and China India and China have much in common and also many differences that make their economies and economic growth very different. India and China are neighbors in south East Asia, sharing about 2100 miles of boarder between each other that runs along the Himalayas. Both countries are ancient in origin and birth places of civilization outside of the Middle East. They both have very large work forces available and 100 years ago both countries were considered to be fairly useless in the global economy except for tea production and some raw materials like silk or dyes. Both countries were at least partially colonized by the English. Both countries are potentially strong economies, although China has more realization of this possibility...
Words: 2727 - Pages: 11
