Trend of Foreign Investments in Australia: Evaluating External Business Factors

Running head: BUSINESS ACROSS BORDERS
Business across borders
Name of the student
(AEES3007
MOHD ZAKUAN BIN AZMI")
Name of the university
Author note

1Running head: BUSINESS ACROSS BORDERS
Executive summary
The aim of this report is to discuss about the trend of foreign investments in Australia. In doing
so, this report had evaluated the external business factors relevant for the business organizations
in doing business in Australia. In addition, this report had also discussed about the impact of
foreign currency exchanges for the businesses along with the impact of natural resources. It is
concluded that Australia is having huge access to the different natural resources but lacks in
skilled workers. A few recommended steps are being stated in this report in accordance to the
gaps being identified in the current trade policies in the country. These steps can help in
enhancing the country effectiveness in the long term.

2Running head: BUSINESS ACROSS BORDERS
Table of Contents
Introduction......................................................................................................................................3
Political environment.......................................................................................................................3
Economical environment.................................................................................................................4
Social environment..........................................................................................................................4
Technological environment.............................................................................................................5
Identification of the natural resources.............................................................................................5
Impact of the foreign currency exchanges.......................................................................................6
Trade policies and processes of Australia.......................................................................................7
Existing levels of foreign investments.............................................................................................8
Recommendations............................................................................................................................8
Conclusion.......................................................................................................................................9
Reference.......................................................................................................................................10

3Running head: BUSINESS ACROSS BORDERS
Introduction
Competitiveness of the country is important in the current time due to the reason that it
will help in attracting more foreign investments in the country. Moreover, in the current business
state of affairs, countries are getting more depended on the inflow of the foreign direct
investments for growth of the national economy. The more will be the inflow of the foreign
investments in the country, the more will be the growth of economy (Penrose 2017). Majorly, the
external business factors should be made effective enough in order to have favorable business
environment for the foreign firms. In addition, the effectiveness of the trade policies of the
countries along with the probable risks is also having major influence on the country’s
competitiveness (Salacuse 2017).
This report will discuss about the country competitiveness of Australia due to the fact that
in the recent time, Australia is one of the rapidly developing and stable countries in the world. In
addition, this report will also discuss about the relevant external business factors to be faced by
the business organizations in doing business in Australia. PEST analysis will be used to identify
these factors. Australia is having access to different natural resources, which are further
contributing in gaining competitive advantages for the country. These resources will also be
identified in this report. Existing trade policies of Australia along with the potential barriers will
be identified and a few recommended steps will be discussed accordingly.
Political environment
It is reported that currently, Australia is having stable political scenario in the country
with the moderate ranking for the political stability. This is beneficial for the foreign companies
investing in the countries. However, on the other hand, it is also identified that the trend of