Economic and Financial Environment

International Marketing 250

Individual Assessment

Current Issues Assignment

$42m boost as Jakarta lifts ban on beef cuts

The article described Indonesia has revoked a restriction on imported steak and edible offal which worth at least $42 million for Australian exporter (Kelly 2016).

The cancelation on imported steak and edible offal in Indonesia demonstrated reasons for increase import competition. Import competition could influence a country’s transition from low quality product to high quality product and keep domestic firm to use new technologies to improve and product better quality of the product. Therefore, Indonesian consumer could choose wider range of quality beef product.

In 2015, Indonesian government tend to control trade flow through protectionist strategy and increase tariff for imported beef product to Indonesia. Protectionist is a practice of protecting or shielding domestic industry from foreign competition by increase tax on the specific product (Fletcher and Crawford 2011). This lead the beef product to very high inflation and the domestic beef industries didn’t produce very good quality of beef (Kelly 2016).

The Acting Prime Minister Barnaby Joyce was looking forward to negotiate Free Trade Agreement (FTA) between Australia and Indonesia (Kelly 2016). FTA could reduce the tariff on the product and it also reduce the barriers for the product to enter the market. Additionally, Australian exporters will gain access to compete in the market (Kelly 2016).

Individual Assessment

Current Issues Assignment

Taking the temperature of China’s boom

The article demonstrates the baby formulas and supplementary vitamins are the new export boom and China is issuing rule changes (Kirby 2016).

Due to high consumption and high demand on imported baby formula and supplementary vitamins, China government act as regulator to reduce the nation to import goods. Regulator can be defined as person or body that supervises or regulates on business activity (Fletcher and Crawford 2011). Online sales of consumer goods like infant formula and vitamins is been GST taxed by China government (Kirby 2016).

The article has shown that China government is also act as facilitator to aid or improve the quality of the local baby formula and vitamins. Facilitator can be defined as government help the private sector by using subsidies, tax incentives and concessional loans (Fletcher and Crawford 2011). To boost the success of local products, Chinese government is issuing the rule changes and encourage the local producers to improve on their baby formula or vitamins (Kirby 2016).

It also demonstrates government intervention at this sector. Government intervention can be defined as polices that taken by government to affect the decision made by the individual (Fletcher and Crawford 2011). China didn’t act as protectionist to protect the local producers.

Individual Assessment

Current Issues Assignment

Telstra Plans $2.31 Billion Network Spend After Profit Lift

The article demonstrates Telstra Corp will invest 3 billion AUD to upgrade its network to increase links with business customers (Thurlow 2016)

In the next three years, Telstra has confirmed that they will spend 3 billion to improve the network. It has recognised as the fifth techno-economic paradigm which is ‘carrier branch’ industries on converging information-based infrastructure to provide data, text, sound and image (Fletcher and Crawford 2011). Coupled with improved network, customer could experience faster and more stable network. This would also create more business links for the further customers and giving good impression or building good reputation across the world.