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Product cover image for Wine Importer Asa Top: Navigating the China-Australia Wine Trade War

Wine Importer Asa Top: Navigating the China-Australia Wine Trade War

Jie Bai, Su Liu

Product #:W27045
Supplier:Ivey
Discipline:General Management
Setting:China, 2021
Details:Case (PDF) • 10 pages • 2022-03-18

Subjects:

InternationalizationInternational businessManagement

Industries:

Food and beverage sector

Geography:

AsiaChina
Your Price:$9.71

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In March 2021, the wine trade war between China and Australia was escalating, and the competitive landscape in China’s wine market had changed dramatically in just three months. Asa Top, a Chinese import company that had represented certain Australian wineries for over a decade, had to rethink its marketing strategy. The general manager of Asa Top did not know when the recent trade friction between China Australia would end. After the Chinese government introduced its new tariff policy on Australian wine, other participants in the Chinese wine market had quickly reacted to claim Australian wine’s market share in China. How should Asa Top deal with the impact of the duties, reduce the losses, and explore future co-operation with Australia’s winemakers?

Learning Objectives

This case is appropriate for undergraduate- and graduate-level courses on international trade, the global economy, and international business. The purpose of this case is to give students an understanding of the preconditions for and implementation of anti-dumping and anti-subsidy duties, the impact on stakeholders, and the response of Asa Top and its Australian partners to the duties imposed by China. After working through the case and assignment questions, students will be able to do the following:
  • Understand the available anti-dumping and countervailing measures according to the World Trade Organization and the preconditions for these.
  • Analyze the social welfare effects on a country of anti-dumping and anti-subsidy duties.
  • Explore the possible strategies for importers and exporters to circumvent the uncertainty of the trade policy.
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Case Study: Wine Importer Asa Top: Navigating the China-Australia Wine Trade War (English version) | Ivey Publishing