HI5003 - Report on International Business
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Holmes Institute Sydney
HI5003 Economics for Business (HI5003)
Added on 2020-03-07
About This Document
This report will discuss the potential of a firm entering the Australian market. In addition, various aspects such as political, economic, social, and financial will be discussed in the Australian market. Necessary recommendations will be provided accordingly. Moreover, the government policies regarding the foreign direct investment will also be discussed here in this report
HI5003 - Report on International Business
Holmes Institute Sydney
HI5003 Economics for Business (HI5003)
Added on 2020-03-07
ShareRelated Documents
Running head: INTERNATIONAL BUSINESSInternational businessName of the studentName of the universityAuthor note
1INTERNATIONAL BUSINESSExecutive summaryThe aim of this report is to discuss about the potentiality of them in entering the Australianmarket. In addition, various aspects such as political, economical, social and financial will bediscussed in relation to the Australian market. Australia being a developed and industrializedeconomy will have positive implications on the business performance. The economy of Australiais showing positive growth rate along with strong end effective legal system. The politicalsystem is also stable. The social and cultural environment is much diversified and will help tohave the varied resources for the organizations. Having analyzed all these factors, it is beingrecommended that entering in the Australian market is a huge opportunity for Make my shoe.The economic policies of the government of Australia will help to enhance the businessperformance of them.
2INTERNATIONAL BUSINESSTable of ContentsIntroduction......................................................................................................................................3Economic factors.............................................................................................................................4Political factors................................................................................................................................5Legal factors....................................................................................................................................6Trade and investment environment in Australia..............................................................................7Foreign exchange issues..................................................................................................................9Financial factors...............................................................................................................................9Cultural factors................................................................................................................................9Recommendations..........................................................................................................................10Conclusion.....................................................................................................................................10Reference.......................................................................................................................................12Appendix........................................................................................................................................15
3INTERNATIONAL BUSINESSIntroduction Footwear industry in Australia is one of the most promising and potential market inAustralia. With having several global and domestic organizations operating in this sector, themarket is intensely competitive. Make my shoe is one of the new entrant in the market and withtheir innovative approach of delivering the product; they are trying to gain a foothold in themarket. Make my shoe has been originated in Thailand in 2015. They have created a distinctiveapproach among the customers in their home country for their innovative approach. Thecompetitive advantage for them is delivering the product to their customers in highest possiblecustomization option (Marques et al. 2016). The shoes offered by them to the customers are fullycustomizable according to the choice of the customers. Thus, each product of them carries adistinctive value to their customers. This approach of them is helping them in gaining marketshare among the conventional shoe manufacturers. This report will discuss about the potentiality of them in entering the Australian market.In addition, various aspects such as political, economical, social and financial will be discussedin relation to the Australian market. Necessary recommendations will be provided accordingly.Moreover, the government policies regarding the foreign direct investment will also be discussedhere in this report. Secondary data gathered from the various government sites and chamber ofcommerce will be used to identify the key factors. However, there are certain limitations beingidentified in making this report. This includes reliability of the data. Though the data are beingcollected from the reliable government site, but still it cannot be as reliable as the primary data.Another limitation being identified is effectiveness of this report. This is due to the reason that
4INTERNATIONAL BUSINESSthe market scenario is changing rapidly and thus the outcome of this report can vary from thecurrent market scenario. Economic factors Currently, Australia is going through acute inflation and accordingly the economicreforms are being modified by the government. The current economic policy of the governmentis aimed at enhancing the supply of the skilled employees and development of the education.Thus, Make my shoe will not find any difficulties in having the access to the skilled humanresources for their manufacturing and networking unit in Australia. The economic policy ofAustralia is being modified to attract more foreign direct investment to the country (Butlin2013). As of 2016, the GDP of Australia is stands at US$ 1260 billion which is lower than theprevious years. The economic growth is also getting slower. In 2012, the economic growth was3.6 which came down to 205 in 216. Thus, the modified economic reform of Australia is aimedat enhancing the economic growth in the country. Though, the outer picture of Australianeconomy is dull, however, it may act as the opportunity for the organizations in entering themarket. This is due to the reason that the Australian economy will again regain its shape after thesuccessful implementation of the economic reform of the government (Butlin 2013). As seen inthe figure 1, the average growth rate of the Australian economy was never above 3.6 percentwhich is quite lower than some of the emerging economies. However, one of the bright spot in the dull picture of the Australian economy is theincreasing rate of the per capita income of the population. As shown in the figure 2, the percapita income stands at US$ 58,000 as of 2011 and it is showing positive growth. Thus,comparing to other countries, the per capita income of the Australia is positive. Thus, the
5INTERNATIONAL BUSINESSpurchasing power of the customers is increasing and it will pose a huge opportunity for theorganization in offering their products. The more will be the purchasing power of the customers,the more will be the market for the products. Figure 3 portrays that as of 2012, the customerprice index of Australia is 1.6 percent per annum. Thus, it can be said that inflation is moderateand it is the ideal economical environment for investing. The inflation rate as of 2016 inAustralia is 1.5 and is gradually decreasing in the last few years. The unemployment iffluctuating in the last few years and as of 2012, it stands at 5.8 percent of the total population.However, when compared with the last decade, the unemployment rate gradually declined. Itportrays that more number of people are employed and they have the purchasing power for newproducts.Being a developed country, the infrastructure in Australia is quite enhanced anddeveloped. Transportation including railways, sea port, roadways and air connectivity is muchdeveloped. Thus, organizations having their operating facility there will not face any difficultiesin terms of infrastructure. Moreover, the government is further increasing the public expenditurein order to step up the infrastructural facility. Australia is having access to the latest technologiesand with having adequate supply of skilled employees; organizations can have their businessmore effective in Australia. Political factors Australia is a commonwealth state and is a democratic federal country. The structure oftheir democracy is bipartisan. The two major parties from the different ideologies participate inthe election. The election is being held in every five years. The political condition is stable withhaving strong political structure. The government of Australia is headed by the prime minister.
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