Free Trade and Foreign Direct Investment in Australia, Britain, China - Term Paper Example

The Prime Minister of Australia John Howard and President Hu Jintao of China decided on a free trade Agreement (FTA) as well.... The study also focuses on the free trade Agreement (FTA) and the challenges along with opportunities for Australia and China where the involvement of WTO (world trade organization) also plays a vital role.... A free trade agreement is a contract between two countries where tariffs are excluded from deals and it lies under the rules set by WTO....

The question as to whether markets are or are not efficient is central to investment decisions.... In a scenario where markets are efficient, commodity price signals provide the best investment appraisal criteria, and the appraisal process itself justifies the market price levels.... Under circumstances of inefficient markets, commodities prices deviate from their true values, and the process of investment appraisals utilizes approximate bench marks in obtaining the viability of investment decisions....

Australian TOT Between the year 1998- 1999 and the year 2008 to 2009, the TOT of australia have undergone or went through an unprecedented rice of 75% indicating the alterations in both the composition and prices of traded services and goods.... The fall in the TOT presents a huge downside risk to the economy of australia.... Sources: the exchange rate was retrieved from the Statistical Bulletin of the Reserve Bank of australia while the TOT (terms of trade) was retrieved from the ABS Table 1 Cat....

The Chinese economy - a renowned net exporter - boasted a current account surplus of $359 billion in 2007 and a net figure of foreign direct investment of $83 billion.... Embassy of the People's Republic of China in australia) This bodes exceptionally well for investment opportunity.... The rapid advancements in the production and consumption capacity of china have resulted in buoyant annual economic growth rates in excess of 10% per annum for the past 5 years running, as of 2007....

It receives the most in terms of foreign direct investment (FDI) than any other country in the European Union (EU), creating new jobs, finance projects, and providing access to new technologies.... foreign direct investment (FDI) as defined by IMF is 'a direct investment that is made to acquire a 'lasting interest' in a business operating in a country other than that of the investor, and his sole purpose being to have an effective voice in the management of that company'....

This analysis paper "The Global Recession" examines the factors leading to the present global recession and its impact on the global economy.... The financial crisis has overwhelmed the global economy and is being addressed not only on the country level but also on a global forum.... … The global recession occurs when the global growth falls below 3%....

The paper 'foreign direct investment in australia' presents the Internet which is commonly used for advertisement; hence, hotels get stiff competition from international hotels that get clients through the internet.... Increasing GDP High GDP in australia affects the hotel industry negatively since the hotels have to pay additional taxes to the government to raise the capital to pay the debts (Faeth, 2010).... The policy will limit the chances of hotels offering extremely lower prices, which spoils business for other hotels globally, especially australia....

Australia and China have almost the same perspectives regarding free trade agreements, reduction of taxes, lower inflation, and reformation.... The Prime Minister of Australia John Howard and President Hu Jintao of China decided on a free trade Agreement (FTA) as well.... The study also focuses on the free trade Agreement (FTA) and the challenges along with opportunities for Australia and China where the involvement of WTO (world trade organization) also plays a vital role....