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Economics for Business - Essay Example
Finance & Accounting
Pages 6 (1506 words)
Economics for Business The Main Issue 1. The rock lobster trade is an important industry of Australia. The nation exports rock lobsters to a number of countries in the world and earns significant revenues in return. China served as the largest export market for the rock lobster industry of Australia…
Since China was the biggest importer of the Australian rock lobsters, this industry would lose a significant amount of its revenues in the face of such a prohibition. The Australian Fishing Authorities had also requested the National Government to negotiate these trade restrictions with the Chinese Government. This would save their business from being affected (The Telegraph, 2010). 2. The Chinese economy was the largest buyer of the rock lobster exports of Australia. When the Chinese Government prohibited the Australian lobsters from being imported into the country in November 2010, this came as shocking news to the Australian fishing community. With the exclusion of its biggest export destination, the rock lobster industry in Australia was sure to suffer huge financial losses. The fishing communities in the Victorian province, Western and Southern Australia specialized in the trading of rock lobsters and were expected to be significantly affected as a result of the Chinese ban. The Australian fishing authorities feared that the country’s fishing community would be compelled to sell their catch at very low prices in the market. This in turn would result in lower revenues for these indigenous people. Thus, Australia’s fishing industry was set to be badly hit by China’s import restrictions. ...
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