China, Australia sign landmark free trade agreement

[AndrewJin]

Ok, I understand why you want to ask this question.

First of all, GDP in any developed country usually consist of a large domestic based GDP, basically, export and import only make money when you either have a large consumer base market or a cheap manufacturer base industry.

Most trade are in house, because of the currency value, problem with import is, you import goods and export money (Yes, import do still export) and if a developed country like you said import everything just because they are cheaper or of better quality, then that country, in this case, Australia will export heck a lot of money.

That will destabilised the currency value, and then Australia will either need to print more money to satisfy the local demand (We still spend Australian dollar inside Australia) or the financial system will be broken and we gone back to barter (Goods trades Goods) as the monetary base are not enough to fill the local need.

And seeing Financial Service require a stable currency, hence we simply can't import everything as long as they are cheap.

And about the second part of your question, the Australian brand are not popular in China due to the fact that not enough Australian ex-pat (Chinese-Australian or not) living in China, the demand of Australian product not actually big enough to exist, compare to 1.5 - 2 million Chinese in Australia, there are need for Chinese goods to satisfy the Chinese Ex-pat in Australia, that is the reason why you can find Chinese shop sold Chinese good in almost every suburb in Australia, but you won't see a lot of Australian shop service Aussie ex-pat in China, even if they do have one, it is few and far beyond.



Ironically, Outback steakhouse is actually an American Restaurant....

We tried to sue the company for the name, but to no avail...

Outback Steakhouse - Wikipedia, the free encyclopedia

Thanks for your reply.
But why do you say Australian brands will be popular when there are enough Australian ex-pat in China? I cannot find the relation. And I don't think Chinese products sold to Australia is to satisfy local Chinese.

 

[jhungary]

Thanks for your reply.
But why do you say Australian brands will be popular when there are enough Australian ex-pat in China? I cannot find the relation. And I don't think Chinese products sold to Australia is to satisfy local Chinese.

That's because of the basic "Supply and Demand" theory.

Imagine this, if you have an established brand in China and wanted to sell them in Australia, how do you carry your brand to Australia? You will need 3 things, brand awareness, customer base and also the actual product.

Brand Awareness can be achieve by advertising, but for an actual customer base and have the actual product to sell in Australia, you will need to have people physically wanting that brand and that product and physically using said product.

Ex-pat help because ex-pat would help established a market, or a foothold for said product in a foreign land, by people living in say Australia, physically wanting that product, and then once you have a foothold, that company can expand into Australia and start promote brand awareness.

People buy an item usually because of 3 things, price, quality and brand loyalty. But all in all, you need to have that initial market to have your product "on the shelf" first, then talk about the 3 entities of purchases

 

[AndrewJin]

That's because of the basic "Supply and Demand" theory.

Imagine this, if you have an established brand in China and wanted to sell them in Australia, how do you carry your brand to Australia? You will need 3 things, brand awareness, customer base and also the actual product.

Brand Awareness can be achieve by advertising, but for an actual customer base and have the actual product to sell in Australia, you will need to have people physically wanting that brand and that product and physically using said product.

Ex-pat help because ex-pat would help established a market, or a foothold for said product in a foreign land, by people living in say Australia, physically wanting that product, and then once you have a foothold, that company can expand into Australia and start promote brand awareness.

People buy an item usually because of 3 things, price, quality and brand loyalty. But all in all, you need to have that initial market to have your product "on the shelf" first, then talk about the 3 entities of purchases

But i don't think what you describe is the situation how Japanese are selling stuff in China. And Americans started to sell their junk food in Beijing in 1990s, their initial customers were all Chinese.

Is this rule only the case in Australia?

 

[jhungary]

But i don't think what you describe is the situation how Japanese are selling stuff in China. Is this rule only the case in Australia?

This is not a rule per se, but I can see why Japan don't need an initial customer base as Japan is a lot closer to China then Australia, market and human float is more fluid between Japan-China than Australia-China

 

[AndrewJin]

This is not a rule per se, but I can see why Japan don't need an initial customer base as Japan is a lot closer to China then Australia, market and human float is more fluid between Japan-China than Australia-China

Well, your ex-pat explanation cannot convince me, but it's quite novel to me. I think there will be a lot of Australian brands sold in China if they are really good compared to from Japan/SK/Germany, otherwise, we will continue to only see agricultural products here.

Anyway, thanks a lot!

 

[Shotgunner51]

Well, it is and it isn't, depending on the environment, and the trade volume, but to be fair, this is more than I can understand, so I probably best shut up on this occasion

LOL ... OK then!