International Trade and Enterprise

Question: Discuss about the International Trade and Enterprise. Answer: Introduction: Facts and Figures Globalisation has changed the face of the key trading agreements between Australia and Korea. With the emergence of globalisation, the dramatic change in the textile, clothing, and footwear (TCF) industries can be witnessed in the last 25 years. The significant change is necessarily caused by the stretched distribution of the production process. The particular scenario caused the sizable employment loss Europe and North America, whereas the substantial gains can be observed in the case of Asia and other major regions of the developing world. Apart from that, the development of The Korea-Australia Free Trade Agreement (KAFTA) was done due to the impact of globalisation (Lester, Mercurio, and Bartels 2016). The application of the comprehensive bilateral agreement has caused the Australian businesses to gain the competitive position in the South Korean markets. As a result, the food businesses of the both countries have started to get impressive results. Growth of Industries in the Identified Countries Based on the Trademap Data (2015), the food and agricultural business of Australia has achieved US$2.34 billion in the Korean market in 2015 while holding 9% of market share. The particular statistic ensures the industry to be positioned in the fourth place after China, USA, and Brazil respectively. The individual growth is proliferated by the perception of the Korean people believing Australia as one of the clean and green environments providing quality food products and ingredients. Similarly, the bilateral relationship between Korea and Australia was first recorded in 1889. Since then, the continuous evolution and growth in the fashion industry between the two countries can be observed, as the Australian fashion and textile industry achieved the primary growth from the Korean market (Kehoe and Ruhl 2013). The rise in the industry is boosted, as clothing and customs form a significant part of the history of Korea. Positive and Negative Aspects of Agreements From the article developed by Yu (2011), it can be determined that the positive or negative implications of the trade activities between Australia and Korea can be fixed by the favourable political and security relationships between the two countries. The study highlights the negative consequences of the trade agreements from the perspective of Korea due to the unbalanced commercial interdependence set by the nature of the democratic relationship (Yu 2011). Another study developed by Liou (2008) explained the positive implications of the Preferential Trade Agreements (PTA) including the Free Trade Agreements (FTAs) and Regional Trade Agreements (RTAs). The author has developed by the study by considering the trade agreements between Australia and Korea to reveal that the particular process is essential for the reduction of barriers between the economies (Liou 2008). Lastly, the study developed by Lee and Kim (2010) was conducted by assessing the impact of economic interdependence by the different trade agreements with considering the East Asian alliances. The study expressed both positive and negative aspects of the particular factor. The positive aspect is based on the exchange of values and wisdom, while the negative implications are the asymmetrical structure of the trade agreements (Lee and Kim 2010). Factors Affecting the Trade From the analysis of the bilateral trade agreement between Australia and Korea, it can be understood that any bilateral or multilateral trade agreements are highly influenced by some of the significant factors. These factors include the natural resource, geographical locations, political factors, and economic development (Tansu and Kaynak 2013). For example, the geographic location of the country often provides conveniences regarding the transportation to insist the development of trade agreement. References Kehoe, T.J. and Ruhl, K.J., 2013. How important is the new goods margin in international trade?.Journal of Political Economy,121(2), pp.358-392. Lee, D.S. and Kim, S.E., 2010. Assessing the Impact of Economic Interdependence on East Asian Alliances. Lester, S., Mercurio, B. and Bartels, L. eds., 2016.Bilateral and regional trade agreements: Commentary and analysis(Vol. 1). Cambridge University Press. Liou, To-Hai, 2008. South Korea's FTA Strategy under Roh Moo-hyun.WTO , Taiwanese Journal of WTO Studies9 (2008): 177-212. Tansu, A. and Kaynak, E., 2013. An empirical investigation of the differences between initiating and continuing exporters.Asia Pacific International Journal of Marketing. Yu, H.S., 2011. The Korea-Australia Free Trade Agreement and Its Security Implications.Korea Observer,42(1), p.47.