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International Business (international trade) the title of the research is the impact of Free trade agreement on New Zealand Econ - Dissertation Example

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Impact of Free Trade Agreements on New Zealand economy Impact of Free Trade Agreements on New Zealand economy College Name Subject S.NO Details Page No 1 Abstract 3 2 Introduction 4 1.1 What is Free Trade Agreement? 4 1.2 History of Free Trade Agreement 5 1.3 New Zealand and Free Trade Agreement 6 1.4 What is Trade Intensity Index?…
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International Business (international trade) the title of the research is the impact of Free trade agreement on New Zealand Econ
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Download file to see previous pages 24 4 Findings & Conclusion 26 5 References 29 6 List of Tables and Graphs 32 Abstract Many past empirical evidences had found that FTA (Free Trade Agreements) is likely to boost bilateral trade flows, to assist to attain economic growth and to create new employment openings driven by export directed development in the economy of partner nations. In most of the FTAs, the advantages derived due to FTAs are likely to overshadow the cost involved especially in the long run. FTAs will likely to result in tariff minimisation in the majority of the products traded between the nations. This research paper will endeavour to examine whether FTAs entered by New Zealand (NZ) with Australia , China , and ASEAN has helped the NZ economy to grow further or not and whether NZ derived much benefits from such FTAs like employment creation , technology transfer , increased standard of living , simplification of customs procedures , trade expansion and overall economic growth by investigating into the earlier empirical evidence available on the subject and statistics offered by the respective governments. (“Ali, 2011, p.1”). ...
und a buyer for his product in Australia, and the Australian importer has to pay a tariff of 20% meaning for $100 product imported from NZ , an Australian has to pay $120 ( cost of material + tariff) . However, under NZ and Australia FTA agreement, these products can enter into Australia without tariff and vice-versa. The preferential tariff rates under FTA make NZ products cheaper for Australians. The elimination of tariff offers the NZ, a competitive benefit over other nations that do not have FTA with Australia. Thus, FTAs make NZ producers and exporters more competitive both in abroad and domestically. (“Renda, 2013, p.1”). A FTA has the following advantages: Safeguards NZ investments in the partner’s nation Offer new market access for NZ manufacturers and consumers Offer market access to remanufactured products Trade-in-services will get a fillip Offers advantages to medium and small exporters of both the nation Enhances custom facilitation (Garnaut, 2002, p.125). If we analyse the economic growth rates of nations that have FTAs with the developing nations, as indicated by GDP, we can find that in many cases, it has surpassed those of advanced economies. NZ companies exporting to Australia enjoy double benefits with ever growing consumer bases and low tariff rates. In spite of recent global economic crisis, FTA has facilitated many small nations to sustain the growth and to maintain the same in the coming years also whereas advanced economies are in turmoil. (Barry, 2012, p1). 1-2 History of Free Trade Agreements As per Dent (2007), the regionalised and imperial trade arrangements that existed between Middle East, China, Europe and India have given birth to the international trade systems. The first ever world trade system had the origin from the gradual ...Download file to see next pagesRead More
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