Herald reported:China has dropped its tariffs on Australian wine after years of sanctions that crippled the billion-dollar export industry.The Chinese Ministry of Commerce said on Thursday afternoon it "would terminate the collection of anti-dumping duties* on imported Australian wines from March 29. Prime Minister Anthony Albanese said the Australian government welcomed the decision and confirmed it would drop its case against China at the World Trade Organisation.The re-entry of Australian bottled wine into the Chinese market will benefit both Australian producers and Chinese consumers, he said.The tariffs of between 107 and 212 per cent were introduced in 2020 on some of Australia's best-known wine brands. They followed multiple diplomatic disputes between Canberra and Beijing over human rights, national security and COVID-19 that saw all ministerial contact cut off between the two governments.Using the diagram of the Open Economy Macroeconomic model, illustrate and explain the long-run impacts of China's resumption of importing produces from Australia on the real interest rate, net foreign investment (NFI), and real exchange rate in Australia.
Herald reported:China has dropped its tariffs on Australian wine after years of sanctions that crippled the billion-dollar export industry.The Chinese Ministry of Commerce said on Thursday afternoon it "would terminate the collection of anti-dumping duties* on imported Australian wines from March 29. Prime Minister Anthony Albanese said the Australian government welcomed the decision and confirmed it would drop its case against China at the World Trade Organisation.The re-entry of Australian bottled wine into the Chinese market will benefit both Australian producers and Chinese consumers, he said.The tariffs of between 107 and 212 per cent were introduced in 2020 on some of Australia's best-known wine brands. They followed multiple diplomatic disputes between Canberra and Beijing over human rights, national security and COVID-19 that saw all ministerial contact cut off between the two governments.Using the diagram of the Open Economy Macroeconomic model, illustrate and explain the long-run impacts of China's resumption of importing produces from Australia on the real interest rate, net foreign investment (NFI), and real exchange rate in Australia.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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am. 165.
Transcribed Image Text:Herald reported:China has dropped its tariffs on Australian wine after years of sanctions that crippled the
billion-dollar export industry.The Chinese Ministry of Commerce said on Thursday afternoon it "would
terminate the collection of anti-dumping duties* on imported Australian wines from March 29. Prime
Minister Anthony Albanese said the Australian government welcomed the decision and confirmed it
would drop its case against China at the World Trade Organisation.The re-entry of Australian bottled wine
into the Chinese market will benefit both Australian producers and Chinese consumers, he said.The tariffs
of between 107 and 212 per cent were introduced in 2020 on some of Australia's best-known wine
brands. They followed multiple diplomatic disputes between Canberra and Beijing over human rights,
national security and COVID-19 that saw all ministerial contact cut off between the two
governments.Using the diagram of the Open Economy Macroeconomic model, illustrate and explain the
long-run impacts of China's resumption of importing produces from Australia on the real interest rate, net
foreign investment (NFI), and real exchange rate in Australia.
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