International Trade Project: Analyzing Business Environments

This project provides an analysis of the business environments in Australia, India, and Pakistan, focusing on factors impacting international trade. It examines the political environment, including political stability and governmental policies, in each country. The project further explores the pressure for local customization, particularly in the fast-food industry, highlighting how companies adapt to different consumer preferences and cultural nuances. Additionally, it assesses the ease of doing business in each country, using World Bank data to compare their regulatory environments. The analysis concludes by ranking the countries based on their overall socio-political and economic factors, offering insights for businesses considering international expansion. Desklib provides this document as part of its collection of student-contributed assignments.

Running head: INTERNATIONAL TRADE
International Trade
Name of the student
Name of the university
Author Note

1INTERNATIONAL TRADE
Table of Contents
Part A:........................................................................................................................................2
Part B:.........................................................................................................................................5
Part C:.........................................................................................................................................7
References:.................................................................................................................................9

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Part A:
Political Environment:
Political stability is an essential factor that can affect a business organization in either
positive or negative way. By involving in trade agreement and implementing tax policies, the
government can control the political environment of a country.
Being a liberal-capitalistic democracy, the state government of Australia interferes
significantly in various economic activities in this economy related to trade, for instance,
implementing taxes for protecting the self-interest of domestic business organizations and
national economy (Ma, Kent and Mulley 2018). It is beneficial to start business in some well-
known cities like Sydney and New South Wales of Australia, as they provide strong, stable
and open government with favorable tax system. Moreover, those cities have best
communicational and infrastructural facilities that can positively influence a business
organization to expand. Based on data of the World Bank, Australia’s rank is 32.
Figure 1: Political Stability Index of Australia (1996 – 2016)
Source: (TheGlobalEconomy.com 2018)
It can be seen from the above data that Australia’s political condition has remained
almost stable since 2003.

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India, one of the populous and leading democratic countries, has possessed a federal
form of government along with parliamentary system. The country’s political environment
has affected significantly by various factors like interests of politicians, ideologies of
different political parties and governmental policies. Consequently, those political factors
have affected India’s business environment (Schleifer and Sun 2018). With emerging
economy in world market along with strong infrastructural facilities, India is constructing a
positive business environment. The country has tried to maintain good relationship with other
developed countries, especially with the U.S.A, through international trade. However, the
Republic of India sometimes has faced political instability due to some domestic and
international causes, for instance, conflict between two opposite political parties and poor
relation with neighbor countries, which in turn have affected the business industry of this
country, adversely. Moreover, unemployment and poverty have negatively influenced India’s
economic growth, while corruption and terrorisms have also influenced India’s political
conditions, adversely.
Figure 2: Political stability Index of India (1996 – 2016)
Source: (TheGlobalEconomy.com 2018)
According to the political stability index of the World Bank, India has ranked 166
(TheGlobalEconomy.com 2018). It can be said from the above figure that until 2013, the
political condition of India has remained poor. However, after this year, the country has
moderately improved this situation.

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Pakistan, another democratic country of South Asia, is a parliamentary federal
republic, which has faced poor political condition due to corruption and insufficient
governmental legislation. This political phenomenon has adversely affected the business
sectors of this country (MengYun et al. 2018). However, Pakistan has tried to maintain good
relationship with other foreign countries and consequently, many foreign companies have
successfully started their business in over there.
Figure 3: Political stability Index of Pakistan (1996 – 2016)
Source: (TheGlobalEconomy.com 2018)
Based on the World Bank data, it can be stated from the above figure that Pakistan
has experienced an instable political condition. Based on the political stability index of the
World Bank, Pakistan has ranked 191 (TheGlobalEconomy.com 2018). Hence, political
environment of this country can negatively influence its business sectors.

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Part B:
Pressure for local customization:
The citizen of each country has different food habits based on their religion, climate,
and geographical position. However, the most important factor is life style. As economic
conditions of these three countries are different, their standard of living can influence the
food habits. Hence, it is essential for this specified fast food Company to analyze menus of
other leading fast food companies, which have their branches in this country.
Australia:
Figure 4: The Parmy of KFC
Source : (Kfc.com.au, 2018)
KFC in Australia has offered ‘The Parmy’. IN this country, people consume fast food
by large amount and for this while, most of them chose non-vegetarian item.
In India, people prefer heavy meal with limited budgets. Moreover, most of the people
prefer to take rice as their meal. Hence, KFC in India has offered various combo packs with
limited prices and also has prepared various food items like smoky rice bowl and chicken rice
bowl for offering complete meal to their Indian customers.

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Figure 5 : Rice bowlz of KFC
Source: (Online.kfc.co.in 2018)
The above figure has represented a food item of KFC in India, where chicken
and rice are prepared together to make a perfect meal.
Figure 6: Ramadan Festival 2 of KFC
Source: (Kfcpakistan.com 2018)

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Citizens of Pakistan also prefer to buy foods with limited prices. Hence, the company
has set lower price levels for their foods. Moreover, KFC intends to serve special combo
offers or special items of their foods during festivals.
Part C:
Figure 7: Ease of doing business in Australia
Source: (Tradingeconomics.com. 2018)
In Australia, the ease of doing business has shown an increasing trend since
2012. However, after 2016, this trend has declined. The rank of Australia on the basis of ease
of doing business index is 14, worldwide. This index considers all economical, political and
social aspects of this country.
Figure 8: Ease of doing business in India
Source: (Tradingeconomics.com. 2018)

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According to the data of World Bank, in 2017, India has ranked 100 among 190
countries while in previous year it has ranked 130. Hence, it can be said that the country has
improved its regulatory environment from 2016 to 2017, which in turn has influenced the
business sectors of this country positively.
Figure 9: Ease of doing business in Pakistan
Source: (Tradingeconomics.com. 2018)
In 2017, Pakistan has ranked 147 while in the previous year it has remained at 144.
From the above figure it has can be said that the country has significantly improved its
regulatory environment for conducting any business and has earned better position compare
to India.
Hence, based on all socio-political and economical factors and data, based on ease of
doing business, those countries can be ranked.
1. Australia
2. India
3. Pakistan

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References:
Kfc.com.au. (2018). KFC Australia | Home. [online] Available at: https://www.kfc.com.au/
[Accessed 31 Mar. 2018].
Kfcpakistan.com. (2018). KFC Pakistan - Order KFC Online for Delivery. [online] Available
at: https://www.kfcpakistan.com/collections/burgers [Accessed 4 Apr. 2018].
Ma, L., Kent, J. and Mulley, C., 2018. Transport disadvantage, social exclusion, and
subjective well-being: The role of the neighborhood environment—evidence from Sydney,
Australia. Journal of Transport and Land Use, 11(1).
MengYun, W., Imran, M., Zakaria, M., Linrong, Z., Farooq, M.U. and Muhammad, S.K.,
2018. Impact of terrorism and political instability on equity premium: Evidence from
Pakistan. Physica A: Statistical Mechanics and its Applications, 492, pp.1753-1762.
Online.kfc.co.in. (2018). RICE BOWLZ | KFC. [online] Available at:
https://online.kfc.co.in/product/rice%20bowlz [Accessed 4 Apr. 2018].
Schleifer, P. and Sun, Y., 2018. Emerging markets and private governance: the political
economy of sustainable palm oil in China and India. Review of International Political
Economy, pp.1-25.
TheGlobalEconomy.com. (2018). Australia Political stability - data, chart |
TheGlobalEconomy.com. [online] Available at:
https://www.theglobaleconomy.com/Australia/wb_political_stability/ [Accessed 3 Apr.
2018].
TheGlobalEconomy.com. (2018). India Political stability - data, chart |
TheGlobalEconomy.com. [online] Available at:
https://www.theglobaleconomy.com/India/wb_political_stability/ [Accessed 4 Apr. 2018].
TheGlobalEconomy.com. (2018). Pakistan Political stability - data, chart |
TheGlobalEconomy.com. [online] Available at:
https://www.theglobaleconomy.com/Pakistan/wb_political_stability/ [Accessed 4 Apr. 2018].

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Tradingeconomics.com. (2018). Ease of Doing Business in Australia | 2008-2018 | Data |
Chart | Calendar. [online] Available at: https://tradingeconomics.com/australia/ease-of-doing-
business [Accessed 31 Mar. 2018].
Tradingeconomics.com. (2018). Ease of Doing Business in India | 2008-2018 | Data | Chart |
Calendar. [online] Available at: https://tradingeconomics.com/india/ease-of-doing-business
[Accessed 4 Apr. 2018].
Tradingeconomics.com. (2018). Ease of Doing Business in Pakistan | 2008-2018 | Data |
Chart | Calendar. [online] Available at: https://tradingeconomics.com/pakistan/ease-of-doing-
business [Accessed 4 Apr. 2018].