Question

Suggest ways of promoting Fiji made goods to Australia and New Zealand. In your view, what are the barriers to trade and how can Fiji deal with issues of trade competitiveness. Cite examples of policies that would promote trade from Fiji.

Answer 1

In order to promote Fiji made goods in the market of Australia and New Zealand, Fiji needs to make the trade competitive decisions in the market. The trade competitiveness can be created with the help of cost-effectiveness, good quality product.

The product should reach the demand of the customers in the market of Australia and New Zealand. The customers will only welcome the products if the product will be less costly. Also, demand can only be created if the products will be of good quality.

Some trade barriers are as follows:

1. Quota: Quota refers to fixing the amount the import entering the country.

2. Tariff: Tariff refers to imposing the taxes or duties on imported products.

Both of these acts as a barrier to trade. In order to promote trade, Australia and New Zealand should remove these barriers. Because these barriers will restrict the number of imports, also tariffs will increase the price of the imported products in the market. This will make the imported products cost ineffective from the customers point of view.