Factors Influencing International Trade in Australia

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Several socio-political and economical factors can influence organisations of a
country to promote international trade. Hence, from the perspective of society and
community it is essential for each company to consider such factors of other courtiers, where
they want to expand their business (Khan, Lindridge and Pusaksrikit 2018). To operate in
international market, it is almost impossible for a firm to take a particular business strategy
for all countries. Due to cultural variations, companies can introduce new products or can
change their existing product types. In this context, social factors are considered to discuss
further in the context of Australia.
International trade has played a significant role in Australia’s economic scenario.
Australia is a stable, culturally diversified and democratic country, which have skilled
workforce due to immigration and consequently they have helped the country to produce
more outputs (Tian, Geng, Sarkis and Zhong 2018). This in turn has helped Australia to
export agricultural raw materials along with natural gas and gold. It is the only nation, where
a single government governs the entire continent. The chief governmental policy regarding
international trade of this country is based on trade liberalisation along with economic
reform. Hence, the government of this country has offered an open market in world economy
with minimum restrictions on imports of goods and services. This policy has helped the
concerned country to attract more foreign countries for trade with it (Rutström and Harrison
2017). Moreover, Australia has possessed diversified natural environment with higher quality
of life and consequently has attracted many tourists all over the world. Hence, international
tourism has played a significant role in Australia’s economy. In addition to this, higher
education has also attracted international students to come in this country.
Hence, foreign and trade policy has helped the country to promote its long-term
prosperity and security. It intends to protect and advance its national interests through a
rapidly changing environment (Rutström and Harrison 2017). It also supports a stable global