Home Business Benefits and Reasons for Doing Business in Australia

Benefits and Reasons for Doing Business in Australia

by admin
36 views

Executive Summary

Managers need to learn the international process of operating and running business in the same way that they do in their own backyard if the world economy continues to grow (Lane et al, 2005). Foreign companies, as a field of study and practise, comprise public and private sector activities affecting persons or organisations from more than one national entity, authority or colony. Currently, Australia has one of the world’s best markets and provides several benefits for tourists, exporters and multinational companies searching for a foothold in the Asia Pacific region. Australia has a phenomenal array of life types that are exceptional relative to the rest of the planet, representing its social-political values and refugees through its vibrant society and lifestyle. The international business climate is perceived, according to Aswathappa (2010), to be the cumulative total of all the external factors operating on the organisation as it interacts with its global and domestic markets. Understanding the Australian market atmosphere in a business deal will alleviate stress and make it profitable and fun for all business parties (Nolan 1996). Australia maintains democratic harmony and has a regional government structure of responsibilities that are usually allocated through representative parliaments between the federal government and state governments. The foreign investment strategy of Australia promotes FDIs that are compliant with community priorities and are necessary to register and receive FIRB approval in some categories, such as new venture idea, investment in sensitive industries, purchase of properties and securities, and real estate (Feslers, 2010). According to the AMB Nation Risk Survey, Australia is in a Country Risk Tier (CRT) 1 area with very low levels of economic, political and financial risk and 18 years of continuous economic development (2010). As recorded in the World Bank survey, and also because of low risk factors, with such rich natural resources and diversity in socioeconomic and political backgrounds, Australia is the best place to launch a new enterprise.

Introduction

The phase of globalisation has made it necessary for firms to extend their trading interests outside their national borders and to reach the world market and to compete in the global market. If the global economy begins to expand, managers need to learn the multinational process of working and running business in the same manner as they do in their own backyard (Lane et al, 2005). In order to succeed and grow in the foreign world, competitive businesses follow a global outlook and strategy, which is a challenge for corporations to cope with the dynamic environment (Punnett, 2010). As an area of research and practise, foreign enterprise involves public and private sector practises involving individuals or entities of more than one national state, jurisdiction or colony. The impact will be different from the strictly domestic in terms of their economic well-being, political standing, belief abilities or expertise, foreign business since it includes working successfully in multiple national sovereignties, in broadly disparate situations, with citizens living with different value structures and structures, legal regimes, etc. It is necessary and crucial to take a strategic view, taking into account the domestic climate of the country chosen for expansion, the socio-economic environment, the nature of the international economic and political framework, and corporate capital, in order to make a movement or take a decision on international expansion. This paper presents the benefits and reasons for doing business in Australia, as well as arrangements and services in the context of incentive, such as some exemptions given for the promotion of foreign investment by the host nation.

Benefits and Reasons for Doing Business in Australia

Background on the Country

Currently, Australia has one of the world’s best markets and provides several benefits for tourists, exporters and multinational companies searching for a foothold in the Asia Pacific region. With no banking difficulties, the nation has been able to survive the latest global financial crisis; it was the only one of the 33 industrialised economies to report positive growth during 2009 (Felsers, 2010). It is the world’s oldest and sixth biggest nation with a strong and successful economy (Australian Government, n.d.). On the territory of 7,682,300 sq km there lives a culturally diverse society (Australian Government, n.d.). The total population is comprised of aboriginals and migrants and exceeds 21 million (Australian Government, Department of Foreign Affairs 2010). Australia has revamped its economy in recent years and become more internationally oriented with its economy being converted from largely inward looking, fiercely protected and heavily dependent agricultural activities to highly competitive and outwardly focused on high growth markets. The nation provides number of opportunities to the companies who want to do business in Australia. For buyers, Australia offers commodity and intermediate goods, as well as a range of highly advanced products. It has liberalized its investment regime, welcoming overseas investment to broaden and sustain many of its agricultural, industrial and service initiatives (Nolan, 1996.) The country has low unemployment rate; consumer and business confidence at above average levels,  it is one of the best place for the foreign investors to expand their organization which is supported by various factors like affluent concentrated consumer market, highly educated workforce, business-friendly regulatory environment, stable political environment and sophisticated technology and professional support services (Felsers, 2010). 

References:
  1. Aswathappa (2010) International Business 4th Ed Tata McGrawhill, New Delhi
  2. Australia’s International Investment Position, FIRB, Retrieved Jan 21 2011, http://www.firb.gov.au/content/Publications/AnnualReports/2008-2009/Chapter4.asp
  3. Australian Government (n.d.). “Australia at a glance”. Culture Portal. Retrieved Jan. 19, 2011 from http://www.culture.gov.au/articles/australiaataglance/
  4. Australian Government, Department of Foreign Affairs (2010).Australia in brief, Australia – an overview”. Retrieved Jan 19, 2011 from http://www.dfat.gov.au/aib/overview.html
  5. Australian Government, Department of Foreign Affairs (n.d.).Australia and the OECD”. Retrieved Jan. 19, 2011 from http://www.dfat.gov.au/oecd/index.html
  6. Australian Government, Department of Foreign Affairs (n.d.).Free Trade Agreements”. Retrieved Jan. 19, 2011 from http://www.dfat.gov.au/fta/
  7. Cavusgil, Knight and Riesenberger (n.d) International Business: Strategy Management and New Realities.
  8. Dewan J.M and Sudarshan K N (1996) International Business Management, Discovery Publishing House, New Delhi.
  9. Foreign Investment Policy, Treasurer, January 2011, Retrieved Jan 21, 2011, www.treasurer.gov.au
  10. Lane W H, DiStefano J.J. and Maznevski M L (2005) International Management Behavior: Text. Readings and Cases, Wiley Blackwell, US
  11. Nolan J. (1996). “Australia business: the portable encyclopedia for doing business with Australia”. World Trade Press, USA, pp. 135-146.
  12. Nolan J.L (1996) Australia Business: the portable encyclopedia for doing business with Australia, World Trade Press, US.
  13. Punnett B.J. (2010) Experiencing International Business and Management: Exercises, Projects and Cases, 2nd, M.E. Sharpe, New York.
  14. Summary of the Australia’s Foreign Investment Policy, Australian Govt., April 08, www.firb.gov.au/content/_downloads/General_policy_summary_april_2008.pdf
  15. The World Bank (2010). Doing business 2011, Australia. United States, pp. 2-4. Retrieved Jan. 19, 2011 from http://www.doingbusiness.org/~/media/FPDKM/Doing%20Business/Documents/Profiles/Country/DB11/AUS.pdf
  16. Australian Govt. Austrade (2011) Risk Management: Minimize risks with management plans, Retrieved on Jan 24, 2011 from http://www.austrade.gov.au/Risk-management/default.aspx
  17. AMB Country Risk Report (2010) Australia, A.M. Best Company Inc, Retrieved on Jan 24, 2011 from http://www3.ambest.com/ratings/cr/reports/Australia.pdf
  18. Thorton Grant (2010) Doing Business in Australia, Retrieved on Jan 24, 2011 from http://www.grantthornton.com.au/files/doing_business_in_australia.pdf
  19. Feslers, Accru (2010) Doing Business in Australia, Retrieved on Jan 24, 2011 from http://www.accru.com/uploads/Doing_Business_Guide_Australia__June_2010.pdf

Related Posts

Leave a Comment