Opportunities of Leather Industry of Pakistan in Australia

This assignment explores the opportunities for Pakistan's leather industry to expand in Australia. It analyzes the political, economic, socio-cultural, technological, and environmental factors. It suggests that Australia can provide a favorable platform for Pakistan to export leather goods and enhance market share and profits for both countries.

Running head: OPPORTUNITIES OF LEATHER INDUSTRY OF PAKISTAN IN
AUSTRALIA
Opportunities of leather industry of Pakistan in Australia
Name of the Student
Name of the University
Author Note

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OPPORTUNITIES OF LEATHER INDUSTRY OF PAKISTAN IN AUSTRALIA.
Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
Political factors.......................................................................................................................2
Economic influences..............................................................................................................3
Socio-cultural trends..............................................................................................................3
Technological variations........................................................................................................4
Ecological factors...................................................................................................................4
Industrial analysis...................................................................................................................5
Summary....................................................................................................................................5
Recommendations......................................................................................................................6
Conclusion..................................................................................................................................6
Reference....................................................................................................................................7
Appendix....................................................................................................................................8

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OPPORTUNITIES OF LEATHER INDUSTRY OF PAKISTAN IN AUSTRALIA.
Introduction
The aim of the assignment is to find the opportunities of Pakistan to set up import and export
business in Australia. In Pakistan, leather products and leather industry is the second largest
export-earning division after textiles. This division is contributing to the GDP growth of the
country and it has all the potential to expand its business to other parts of the world.
Discussion
Political factors
The political factors of a country highly affect the availability of options for the any country
to establish and expand their business in that country. The different laws of Australia and
Pakistan can affect the import and export of leather jackets to Australia. Australia is
politically stable, peaceful and prosperous country. The goods imported have to pass through
various conditions in order to maintain a smooth business. The government to import to
Australia like cosmetics, solvents, plastics and many more restricts few good. The fees to be
submitted for this purpose are custom duty, goods and service tax, other taxes and clearance
fees. The Australian Trade and Investment commission provides information for various
international markets (Perry 2017). Government in Australia, state and territory government
legislation is present to protect the customers, the communities and the environment. They
also promote competition and trading. These laws govern the interaction of the businesses
with the stakeholders. Competition law, consumer law, privacy laws, product liability
regulations, environmental legislations maintained by the government can help the leather
companies of Pakistan to easily spread its business in Australia.
(Legislative laws)

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OPPORTUNITIES OF LEATHER INDUSTRY OF PAKISTAN IN AUSTRALIA.

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OPPORTUNITIES OF LEATHER INDUSTRY OF PAKISTAN IN AUSTRALIA.
Economic influences
Australia is the 13 largest economy of the world. Growth has been seen in the economy in the
year 2017 by 2.4%. Business investment, inflation rate and household income has gradually
increased in the country. The current company tax rate in the country is 30%. Companies
with lesser turnover has tax rate of 27.5%. The base rate of the country was 18 in the year of
2017. Individual rate of tax $18,200 income is zero whereas above that 19c for $1 is the rate.
Higher the income, higher is the tax rate. Vehicles, mineral fuels, electric machinery,
pharmaceuticals, medical apparatus, metals, plastics, furniture and machineries are the main
imports of the country (Hartwell 2017). Australia imported US$221.4 billion worth of items
from all over the world in the year 2017. Whereas the products exported from Australia
includes copper, wheat, financial services, gold, coal, natural gas, beef, iron ore and
educational services. Thus, Pakistan who has worse conditions than Australia can easily set
up their leather business in the markets of Australia. Australia on the other hand ha negligible
leather factories and hence, Pakistan can export their leather items to this country which will
provide them with a huge customer base.
Australian economic strength
Source: (Hartwell, 2017)

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OPPORTUNITIES OF LEATHER INDUSTRY OF PAKISTAN IN AUSTRALIA.
Socio-cultural trends
Australia is the top most country in terms of wealth, quality of life, health and education.
Australia has a small population of 22.9 million only as of 2018. The life expectancy for
women is 84 years and that of men is 80 years. Moreover, more of retired people in that area
are a matter of concern. Australia is one of the multiracial and multicultural countries in the
world. The country is rich in heritage from the indigenous people. Australia also has a
number of private and public universities, which attracts many international people from all
over the world. People of Australia are hard working, lively and outward looking. They are
involved in many extra-curricular activities. The sports section of the country contributes to
the GDP of the country. Pakistan thus, can have a strong socio-cultural background for
expanding its business in Australia.
Technological variations
Australia is the most technologically advanced country of the world. Australians adopt new
technologies at a very faster rate. The country has grown in terms of economy over the years.
Purchases of technology have grown by 4% in the year 2018 to 63 billion dollar and to 65
billion dollar in 2019. Local organizations have started investing in technologies in order to
meet the growing demand of the customers. Computers, software, tech consultancy, artificial
intelligence and cloud are driving these investments which results in more designs and
innovation.
Ecological factors
Australia has the world’s best beaches, forests and mountains. It is popular for its vast
biodiversity. Millions of animals and plants reside in the continent of Australia. It has become
a very famous tourist spot and visitors from all over the world come here in all the seasons to
experience it. Although, Australia has many environmental challenges. Australia has the

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OPPORTUNITIES OF LEATHER INDUSTRY OF PAKISTAN IN AUSTRALIA.
driest land on earth. Climate change in the country is also a major challenge. Climate change
in the country is an existential and current national security risk, which is taken care by the
Australian government (Byrnes et al 2013). There is insecurity of water in the country.
People also suffer from various infectious diseases that are fatal. Local conflicts over water,
food and land interrupts the peaceful environment of Australia. Australia has significant
infrastructure, which has progressed nationally. Australia has affordable and well-connected
roads all over the country. The country is expected to improve its telecommunication
services, competitive energy and water supply. The transportation system of the country is
well organized and creates no trouble inside and outside of the country. Australians face
major land pollution. 30% of the agricultural lands are immensely degraded. The increase in
the salt content of the soil in Australia due to extensive irrigation has destroyed agricultural
production in the country. Loss of biodiversity in the country is because of the ill activities of
human. Although, Australia’s overall environmental condition is far better than that of
Pakistan and hence it can provide a very good platform for Pakistan to start exporting leather
goods and import the quality items of Australia (Khalaj, Scherer and Halgamuge 2016).
Industrial analysis
Australia has huge demand of leather in its country. It is because Australia has very few
manufacturing units of leather and thus, Pakistan can export leather to this country keeping
the price lesser than the usual price in order to increase the demand in Australia. Labor cost in
Australia is not very high and hence, the supply of the products of leather in the country will
be highly beneficial for both Pakistan and Australia (Byrnes et al 2013). The delivery time of
the goods will not take very long time, as the transportation facilities are good in both
Pakistan and Australia. The weather condition of Australia will automatically raise the
demand of the leather goods in the country. The country adopts various rationales for
purchasing goods in order to make an efficient production process. The licensing permits in

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OPPORTUNITIES OF LEATHER INDUSTRY OF PAKISTAN IN AUSTRALIA.
the country are provided by the Australian government and make it easy for businesses to
grow here.
Leather demand in Australia
Source: (Byrnes et al. 2013)
Summary
The purpose of the assignment is to find out the political, economical, socio-cultural,
technological, environmental conditions of Australia in order to analyze the opportunities and
threats for the leather industry of Pakistan. It is analyzed that the favorable conditions of
Australia will encourage the export of leather items in the country and in turn it will enhance
the market share and profits for both the countries.
Recommendations
Australia is the one of the best countries of the world in every aspect. The country will
provide the best platform for Pakistan to expand its business here. Australia should improve

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OPPORTUNITIES OF LEATHER INDUSTRY OF PAKISTAN IN AUSTRALIA.
on the environmental challenges and take the help of the government to provide Pakistan with
the best amenities of the world. Leather industry would require plenty of water, land and
Australia should improve on its land destruction and save more water for the future growth of
the country.
Conclusion
Thus, it can be concluded that Australia can be the best place for Pakistan to start their import
and export business. Pakistan is very popular for its leather industry whereas Australia has
very few manufacturing units of leather in the country. Pakistan can import machineries,
electric machineries, gold, coal and other products readily available and made in the country
and provide its outstanding leather and help the country to build a business relationship for
the longer run.

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OPPORTUNITIES OF LEATHER INDUSTRY OF PAKISTAN IN AUSTRALIA.
Reference
Byrnes, L., Brown, C., Foster, J. and Wagner, L.D., 2013. Australian renewable energy
policy: Barriers and challenges. Renewable Energy, 60, pp.711-721.
Hartwell, R.M., 2017. The industrial revolution and economic growth. Routledge.
Khalaj, A.H., Scherer, T. and Halgamuge, S.K., 2016. Energy, environmental and economical
saving potential of data centers with various economizers across Australia. Applied
energy, 183, pp.1528-1549.
Perry, P.J., 2017. Political corruption in Australia: A very wicked place?. Routledge.

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OPPORTUNITIES OF LEATHER INDUSTRY OF PAKISTAN IN AUSTRALIA.
Appendix
GDP growth of Pakistan
Socio-cultural trends of Australia

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OPPORTUNITIES OF LEATHER INDUSTRY OF PAKISTAN IN AUSTRALIA.
GDP growth of Australia