Export Strategy Expansion of Highest Term Paper

Open, View, and/or
Download this Document

Total Length: 3137 words ( 10 double-spaced pages)

Total Sources: 20

Page 1 of 10

39 It was against this background that ASEAN Foreign Ministers during their retreat at Cebu in the Philippines in April 2005 decided to lay down three main criteria for the membership of the EAS: 1. Substantive relations with ASEAN; 2. Full Dialogue Partner status; and 3. Accession to the ASEAN's Treaty of Amity and Co-operation. The Foreign Minister of Singapore had stated that, India obviously qualifies on all three counts and it will be included in the first EAS. We hope that Australia and New Zealand which have not acceded to the TAC, will agree to the TAC in the coming months (Battese & Coelli, 1992-page 18). If so, we would welcome them to the EAS in Kuala Lumpur. The Minister further added that ASEAN alone will decide the future members of all subsequent summits and ?this is to ensure that ASEAN remains in the driver's seat of the EAS process?. This development can have far-reaching ramifications. At the ASEAN Ministers' Meeting (AMM) in Laos on 26 July 2005 it was announced that India, Australia and New Zealand will be invited to the summit in December (International Monetary Fund, Direction of Trade and Statistics Yearbook, 2005). By signaling affirmatively to India's inclusion in the upcoming EAS summit, ASEAN have clearly shown a vision towards future economic integration between ASEAN and India.

Australian Trade and Foreign Policy

Fig. 1.3 The PESTEL Framework

When most Australians considered foreign policy during these years they conceived of international relations in traditional terms as the political and military contest of states. They thought of the American alliance, nuclear issues, wars, defense, regional security, political relations, the republic, and Australia's response to human rights abuses in foreign countries (Battese & Coelli, 1995-page 6). The foreign policy issues that drew demonstrators onto the streets of Australian cities were all of this kind; the nuclear threat of the mid-1980s, Australian involvement in the Gulf War of 1991, Indonesian repression in East Timor and the French nuclear tests of 1995. These high politics issues are only half the story of foreign policy 1983 -- 96 (Camdessus, 2001-page 18).

The other half; some would say the core; was the economy, and Australia's economic relations with the rest of the world. In 1983 Labor inherited an economy which, for long-term structural reasons, was losing international competitiveness. Whereas Europe, Japan and, to a lesser extent, the U.S.A. used efficient manufacturing to subsidize uncompetitive agricultural producers, Australia did the opposite (Bennett, et al. 2006). In Australia an efficient agricultural and mining sector subsidized an uncompetitive manufacturing sector through high tariffs. Australia had a First World standard of living based on a Third World pattern of exports, a solution that by many accounts left the nation dangerously exposed to fluctuations in world prices for its commodity exports.

As the long boom faded and the queues of unemployed lengthened, many economists embraced a new view about what Australia should do. Reports on industry and finance commissioned by Australian governments of the 1970s stressed the need for Australia to lower tariffs, deregulate the financial sector and restructure the national economy. The economists who wrote these reports did not share assumptions long held on both sides of politics in Australia: that the economy needed to be protected and regulated, for example, and that governments should use taxes and interest rates to moderate periodic booms and slumps, maintain full employment and preserve social harmony (Battese & Coelli, 1995-page 23). They looked to a future where market forces would be liberated to do their magic work of stimulating efficiency and distributing goods, services and labor according to supply and demand.

Stuck Writing Your "Export Strategy Expansion of Highest" Term Paper?

View All Our Example Export Strategy Expansion of Highest Term Paper

Have A Custom Example Essay Written

Government, they believed, had too large a place in the economy and needed to be restrained in favor of the market. If Australia were to remain prosperous, they said, it should begin exporting manufactures and services and reduce reliance on commodity exports. The government had no option but to unravel the web of protectionism and regulation that had been spun around the economy, for only in this way would international pressures for efficiency be felt and manufacturing industry become competitive (Cashin & Patillo, 2000-page 304).

When Bob Hawke was elected prime minister these neo-liberal or 'economic rationalist' ideas were not part of the Labor tradition. But the incoming Labor government confronted unemployment at its highest level since the Depression and was keen to try something different. The new Treasurer Paul Keating still knew little about economics and Treasury officials found he could be persuaded to their viewpoint and then defend it convincingly to the public (CUTS. 2001-page 9). On the basis of Treasury advice Keating soon made fundamental changes in Australia's foreign economic policy. The Australian dollar was floated in December 1983, in effect exposing the economy as never before to foreign competition and in the long run placing downward pressure on wages. The capital market was significantly deregulated, enabling foreign banks to invest in Australia and Australian companies to move capital offshore without difficulty. Capital began to flow in and out of Australia in unprecedented amounts and the Australian dollar became one of the most traded currencies in international foreign exchange markets. Like other countries following a similar policy path, Australia was exposing itself to the destabilizing influences of deregulated international financial markets. From now on all Australian governments, when they pondered economic policy, would have to consider the likely reaction of the financial markets. The effects of these developments were dramatically illustrated in 1986. Australia's net external debt grew fast in the 1980s and particularly rapidly in 1985 when world commodity prices fell (meaning that Australia received less for what it sold) and when the value of the dollar declined to a low of 60 cents U.S. (meaning that the existing debt in American dollars automatically increased). As monthly balance of payments figures worsened and foreign debt grew, the government became alarmed. More and more of the value of Australia's exports was being used to service the debt. In a radio interview Keating warned Australia was at risk of becoming a 'banana republic' crippled by chronic foreign indebtedness. Part of the solution, Keating claimed, was for government to cut spending, and in the 1986 -- 87 budget he made considerable cuts.

Findings and Conclusions

From our research and analysis we can safely conclude that the wine industry is in an embryonic stage in India. Estimates propose an enormous growth prospective of this sector. Both the local wine making industry and the wine market of India need equal attention for proper growth and expansion. We have unquestionably reached an "inflection point" for this business and therefore a revamp in all dimensions and forms seems foreseeable. The increase in import, export and spending suggests that immediate steps are to be taken at nationwide level to help this sector grow at a faster rate.

Let us outline the main factors acting as restrain for this industry in India. At the very core we have four major issues to make a note of: (a) legal facet, (b) global facet, (c) social facet and (d) promotional facet. although as a part of WTO commitments Indian government has taken some optimistic steps to help the industry move easily but in.....

Show More ⇣

     Open the full completed essay and source list


OR

     Order a one-of-a-kind custom essay on this topic


sample essay writing service

Cite This Resource:

Latest APA Format (6th edition)

Copy Reference
"Export Strategy Expansion Of Highest" (2010, August 18) Retrieved May 3, 2024, from
https://www.aceyourpaper.com/essays/export-strategy-expansion-highest-8960

Latest MLA Format (8th edition)

Copy Reference
"Export Strategy Expansion Of Highest" 18 August 2010. Web.3 May. 2024. <
https://www.aceyourpaper.com/essays/export-strategy-expansion-highest-8960>

Latest Chicago Format (16th edition)

Copy Reference
"Export Strategy Expansion Of Highest", 18 August 2010, Accessed.3 May. 2024,
https://www.aceyourpaper.com/essays/export-strategy-expansion-highest-8960
   

Open, View, and/or
Download this Document
order custom essay example