The international

Question Number 1 Given the announcement on 20 December 2015 of the implementation of the China Australia Free Trade Agreement (ChAFTA) after extensive consultation between the interested parties,
outline three (3) examples of industries / sectors in China that are likely to significantly benefit from the signing of this Agreement. In your discussion specifically outline what issues arising
from the implementation of the Agreement will create such benefits (for example; reduction in specific taxes, quotas, tariffs etc.).
Note: At least one of the examples referred to above should be based on benefits arising from the import into China of additional goods or services from Australia.
(Students should write no more than 500 words for this question).

Question Number 2
On 30 November 2015 the International Monetary Fund (IMF) agreed to include the yuan
as a component currency in its Special Drawing Rights (SDR), with official effect as from
1 October 2016.
Required:
a) Briefly discuss why the government in China was so keen to have the yuan
included as a SDR currency.
Students should write no more than 250 words for this part of the question).
b) As an SDR currency, discuss whether the government in China will be likely to
manage’ the volatility of the yuan any differently in comparison to prior periods.
Briefly provide a basis to justify your response to this part of the question.
(Students should write no more than 200 words for this part of the question). .

Question Number 3
Like many countries, the service sector (for example; education, health, communications,
financial services) in China is rapidly increasing in importance both within China and for
the purposes of international trade.
Required:
Provide an outline of two (2) Chinese service firms that have benefited from being
involved in partnership / joint venture arrangements with foreign firms in recent times and
how the individual skills / expertise of each party have complemented each other to
contribute to this overall business success.
(Students should write no more than 450 words for this question).

Question Number 4
In the past many foreign firms have been hesitant to enter the Chinese market for fear of
having their intellectual property undermined through counterfeit products or other acts
designed to remove the foreign firms competitive advantage.
Required:
a)
Outline how the government in China in more recent times has sought to reduce
the ‘anxiety’ of these foreign firms from trading / operating in China through
legislative and other social changes.
(Students should write no more than 200 words for this part of the question).

b)
i)
Discuss some of the programs / projects that the government in China has
commenced / encouraged in recent times that are directed specifically
towards moving the Chinese economy away from being seen as a ‘low-value,
labour intensive manufacturer’ and instead towards being viewed as a ‘high-
value, value-added innovator’.

Outline a recently established Chinese company that you
consider meets the definition of operating as a successful ‘high-value, value-
added innovator’. Briefly provide a basis to justify your response to this part


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