Global Business Development Report: Economic Analysis of Nations

This report provides a comprehensive analysis of global business development, focusing on the economic landscapes of Australia, China, and the USA. Task 1 presents a SWOT analysis for each country, evaluating their strengths, weaknesses, opportunities, and threats within the global market. Task 2 delves into a PESTLE analysis of Twitter, examining the political, economic, social, technological, and legal factors impacting the company's operations in the USA. Task 3 explores the political, economic, and legal systems relevant to export transactions between two countries. Finally, Task 4 addresses questions related to a case study of New Zealand, offering a complete overview of the global business environment and its intricacies.

Running Head: Global Business Development
Global Business Development

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Contents
Introduction.................................................................................................................................................1
Task 1..........................................................................................................................................................1
Australia..................................................................................................................................................1
China........................................................................................................................................................3
USA..........................................................................................................................................................4
Task 2..........................................................................................................................................................5
Task 3..........................................................................................................................................................8
Political Aspects.......................................................................................................................................9
Economic Aspects..................................................................................................................................10
Legal Aspects.........................................................................................................................................11
Task 4........................................................................................................................................................11
Conclusion.................................................................................................................................................13
References.................................................................................................................................................14

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Introduction
The purpose of this report is to provide an overview regarding the economic abilities of three
nations namely Australia, China and USA. The report tells about the SWOT analysis of all the
three countries according to the economic aspects and changes present in the market of the
countries. Apart from that, task two of the report provides the PESTLE analysis of an
information technology company based in USA namely Twitter. Twitter is an online news media
company whose motive is to spread its new information on all around the world. The company
believes in expanding its business on international base. Further the third task of the report is
related to the nature of political, economic and legal system of two countries for export
transaction. Lastly, the fourth part of the report includes questions based on the case study of
New Zealand etc. Further he details of the task are discussed below.
Task 1
Australia
Australia is world’s second wealthiest nation in the in terms of adult employment, which shows
that there is optimum human resource in the economy of the country which helps them to grow
in the global business. In the previous year the country was regarded as the 14th largest nation
having nominal GDP. According to IMF (International Monetary Fund), the previous year
nominal GDP of the country is $ 1.258 trillion (The converstation, 2015). The SWOT analysis of
Australia is discussed below.
Strength
 The geographic proximities of the country are growing in Asia.
 The mining resources of the country are being used worldwide, due to which demand of
the country is increasing with time.
 Debt is one of the factors which degrade the economy of the country. And in the country
Australia, positively there is moderate public debt. This also states that people have more
savings in their hand than debts.

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 Due to efficient tourism services the country earns efficient returns for economy
(Heritage Org, 2017).
Weakness
 One of the weaknesses which Australia faces is shortage of skilled labour in the country.
Because of getting better opportunities outside, the commune prefer settling out of
country.
 The country faces the issue of rapid climatic change due to which the overall economy of
the country is adversely affected.
 Great difference between federation states leads to depletion in economy of the country
(OEC, 2017).
Opportunities
 As it is known that the country is leading in mining and extracting natural resources, thus
this can act as an opportunity for the country to grow and gain competitive edge in the
market.
 Tourism is another major factor which can raise the GDP of the country. Australia earns
an optimum share in GDP due to tourism industry (OEC, 2017).
Threats
 Political risk is one of the issues which can act as a threat for the Australian economic
growth. As there is difference in view of every political party which leads to risk for the
country in initiating sustainable growth.
 Another threat for the country is the migration of skilled human resource from the
country. The companies of Australia are unable to satisfy the requirements of the
employee due to which they switch their jobs in other companies outside the country.
This results as a threat for the country (Smart Company, 2008).
China
China’s socialist economy is world’s second largest economy in terms of nominal GDP and first
largest economy in terms of PPP (Purchasing Power Parity). The fact has been claimed by IMF,
further details about the economy are discussed below:

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Strengths
 The biggest strength of the country is accelerated economic growth including the gross
national product.
 The economy of the country attracts the foreign direct investment due to which China
earns optimum revenue (He, et. al., 2015).
Weakness
 There are been an increase in inflation, but the wage rate of the employees is still the
same.
 Increasing gap between rural and urban cities is reflecting the growth of thecountry
negatively and minimizing the positive effects (Chen, Y., & Wang, 2014).
Opportunities
 The company is greatest manufacturer of products worldwide. This is mjor aspect which
increases the economy of the country.
 The country is constant investing infrastructural projects which can help the country t
become competitive in future (Brandt, Tombe, & Zhu, 2013).
Threats
 One of the major threats of the country is increasing population. Due to this, most of the
positive outcomes of the country are neutralized.
 Transportation and energy are the two sectors which are still in the backward position in
the country. These industries needs time to grow and compete (Chien, et. al., 2015).
USA
The United States of America is a highly efficient country having a mixed economy. USA is the
world’s largest economy by nominal value. The American dollar is remarked as the standard
currency by many countries (Smith, 2014). Further details about the economy of country are
discussed below:
Strengths

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 The economy of America is the largest and most important economy. Any changes in this
economy affect the economy of all other countries worldwide.
 The country has efficient availability of human resource as well. As USA aptly satisfy all
the needs of the employees due to which talented human resource migrate to this country
for employment purposes.
Weakness
 There is a low household saving rate in Australia. Due to which people of the country are
attracted with land related issues.
 The economy of the country is trapped in the vicious circle of wealth disparity. The richer
is getting richer and poor is becoming poorer.
 The share market of the country fluctuates with a speed which affects the economy of
many other countries as well (Leigh, & Blakely, 2016).
Opportunities
 The country initiates strong investment plan for the people of the country due to saving is
becoming a habit of the people. The habit of saving eliminates the debts from the country
and gradually increases the GDP.
 Financial relief can be chucked out in the form tax relief.
 Buyer’s spending power on consumer goods is increasing which is improving the
stability conditions of the economy of the country (Leigh, & Blakely, 2016).
Threats
 The major threat for the country is rivalry of the country with other coalition countries
present in the world, due to this process the country faces barriers in initiating their
activities in the international market (Expósito, et. al., 2016).
Task 2
Pestle Twitter USA (IT)

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Twitter is an online social media website indulged in providing news to the people worldwide.
The company was originated in the year 2006 by Biz Stone, Evan Williams, Noah Glass and
Jack Dorsey. Twitter is headquartered in United States. The company works in information
technology sector under which they developed their application which gives a platform to people
to share their views through tweets. Twitter comes in the list of top ten most visited websites and
is now described with the name of SMS of the internet (Culotta, Kumar, & Cutler, 2015).
The company being an IT business has faced many legal and technological obligations in past
which barred the growth of the company as well. The geographical feature also affects the
growth of the company as the presidential election of US showed to the world that twitter is the
new internet sensation as 40 million people participated and shared their views on the elections
(Corones, 2014). Further the PESTLE analysis of the company provides an overview of the
features of United States of America which are affecting the day to day working of twitter in
positive or negative way. More details about the company are discussed below:
P- Political factors
 With the emergence of twitter the political landscape of the country has changed. As seen
in the above mentioned statement that around 40 million people participated in the
elections held in USA. This shows that people are gaining interest towards the activities
of the government and responding to the same through social media app that is twitter.
 Also the politics of USA has always been fascinating to the people worldwide, this act as
a positive aspect for the company as twitter is an online news websites and people hook
up with the website on regular basis so that they are aware with the information related to
the government and its activities.
 The politics of the country also participates in the activities of twitter which acts as a
positive remark for the company, as all the major personalities are connected with the
people through twitter only. The participatory politics acts as an additional feature in the
growth of Twitter (Feng, & Figliozzi, 2013).
E- Economic factors
 The country USA is the fastest nation which has developed the e-commerce business and
is gaining competence in it. The economic factors of the company are suitable for Twitter

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to grow in the American market. The e-commerce business is in boom in the market due
to which the company was able to achieve the current growth.
 Apart from that there is availability of resources required by the e-commerce business
due to which the business earned a sustainable speed in the market and competence as
well.
 Increase in advertising revenue is the biggest achievement for the company.
Advertisement is the major aspect due to which the company earned most of its revenue.
And talking about the US industry, people are promoting their product through social
media resulting in growth of twitter.
 The purchasing power of people in US is high due to which they are constantly using
internet and social media applications as well (Lewis, 2014).
S- Social Factors
 There has been a behavioral shift in the economy of USA with an increasing pace.
Behavioral shift refers to changing behaviors of people against a product prevailing in the
market. This factor of the economy can act as a negative impact on the growth of the
company. As there is presence of many other online social media websites in the country
and worldwide, so people of USA might anytime switch with other product leading
damage to the revenue of Twitter Company (Vanneste, 2017).
 Also there has been a change in the marketing patterns of the country. Other companies
present in the market also need to change their marketing strategy according to the
upcoming trends present in the country. So, this fluctuation leads to loss for the company
as they need to analyze the market on a regular basis and update their internal
management strategies as well (Baker, Bloom, & Davis, 2016).
T- Technological Factors
 This is one of the major aspects which affect the growth of the company. As twitter is a
company whose operations are related to technology so slighter shift in technology
majorly affect on the activities of the company. As this is the growing era of internet, so
people are more inclined towards using information technology due to which market
share of Twitter is constantly increasing.

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 Apart from that mobile market technology is in a boom now days, and twitter can be
easily used in mobile by downloading the application. So, now use of physical
newspapers is eliminated and people have started using twitter for getting acknowledged
with news now days (Einav, & Levin, 2014).
 Also, USA is the country is always remarked as first in adopting hi tech technology in its
process. Thus, the company also receives such technological changes on the initial level
due to which they always remain on the topmost position in the market.
L- Legal factors
 The legal factor which affects the managerial activities of the company twitter in USA
are confined under the cyber security and cyber stalking laws of the country. The facts
hall be taken into accounts that USA is governed by strict rules and laws defined for
companies and common people of the country.
 Legal risk in USA includes the problem of defamation, circulation of malicious tweets
and impersonation. For instance, if any corrupt or unethical information is circulated
worldwide with the aid of Twitter, then a question might raise on the activities of the
company; which can defame its name in the market.
 Another legal factor is that the company many times faces dilemma for free speech.
Social media is platform where people can express their views freely, due to which
people speak both good bad. Thus, due to this many times the company faces the legal
boundation in their working (Reeves, McKee, & Stuckler, 2014).
E- Environmental Factors
 Environmental factors which affect the business process activities of twitter is that the
power consumption of data centers in USA is low, due to this process people tend to use
more internet with optimum speed and low rates. The internet is accessed by all and is
available at low rates due to which the product and services are majorly used in the
country.
 Apart from that USA has always been in limelight because of its political and
geographical features, due to which twitter becomes a source to circulate such
information worldwide. Twitter being an online news service provider becomes a middle

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way for people; government and corporates to get in touch with each other listen and
solve the issues as well.
 The environmental conditions of USA are favorable for an e-commerce business to
prevail its business in the market. With the use of efficient technology Twitter occupied
major share of the American market (Rollins, Nickell, & Ennis, 2014).
Task 3
The article ‘Why Exporting Matters’ provides a brief overview about the economic growth of the
companies of New Zealand. The case study further analyzes fourteen companies exporting their
products in the global market for business growth. Among them talking about the three
companies and their exporting activities with the country Australia are discussed below. The
political, economic and legal changes which affect the companies while contracting with
Australia are discussed below.
NZ Pharmaceuticals- New Zealand Pharmaceuticals is an innovative leader company involved
in biotechnology industry. The company mainly sells dietary supplements, carbohydrates,
medicines etc. in the market. NZP was established in the year 1971 with an aim to extract
biochemical products from the New Zealand meat processing industry. The company is known in
the market with the name of innovators as they implement innovation in their business activity.
By investing adequate time in the business the company has develop adequate organic products
and technological capabilities through which they can supply their products in the global market
(NZP, 2017).
Pacific Helmets- the company was introduced in the year 1982 to produce motorcycle helmets
for the Australasian market. The company is into going concern process since then and is
constantly achieving diversification in its products which is helping Pacific Helmets to gain
competitive advantage in the global market. The company has gained specialization in providing
emergency services which includes fir, marine rescue, ATV, USAR. Also the company of New
Zealand is a part of Pacific Safety International Ltd. Group Associated companies. The
association is committed to protect people with the world’s best safety gears. It has been noticed
that during motor cycle racing many participants gets injured which is a loss for the country.

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Thus, the company provides such product which can protect the users without any compromise
(Pacific Helmets, 2017).
South Pacific Pictures- south pacific pictures are a television production company
headquartered in New Zealand. The company is engaged in producing drama series, telemovies,
mini-series, feature films etc. for both domestic and international market. The company has also
earned various recognized awards and nomination due to which it is famous worldwide. SPP is a
joint venture company with an Australian company naming SLR productions. With this alliance
the company produces animated shows to serve to the international market. All3media is the
parent company of SPP and the company is also owned by Daniel Barnett. People are waiting for
the upcoming film from south pacific production which is tip top taj mahal.
Political Aspects- political aspects refer to the aspects related to the government of both the
company that is New Zealand and Australia. Further the features which can affect the export
transaction between New Zealand and Australia are discussed below:
 Considering to the exporting transaction, it shall be noticed that export with Australia is
decreasing with time, due to which the economy of New Zealand is also affecting in a
negative manner. Relating to the above fact the overall export activity is decreasing but
the consumer export transaction of New Zealand with Australia is increasing with time
due to which the company NZP has a scope of growth in the Australian market (Sharma,
2017). One of the features which can increase the export amount of New Zealand is that
Australia believes in investing in quality products and good service as well. So this fact
shall be taken in account that NWP provides effective services which can satisfy the
requirements of the Australian market.
 The fact shall be taken into account that Australia is the biggest exporter company of
New Zealand, so the fact shall be understood that the both the government are satisfied in
transacting with each other. New Zealand comes under world’s top 44 countries who
export their products globally. In New Zealand most of the export is made to Australia
only. Apart from that Australia hold tourism activities as well, under which bike racing is
a prominent part held in the country. So all the helmets for motorcycle and bike racing
are optimized by the Pacific helmets company only. So this can act as an advantage for
the country to increase its GDP (Wanhalla, 2013).

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 Looking at the political and social awareness programs held in Australia. It shall be noted
that people are interested in watching such programs which can entertain them with their
economy due to which the company SPP has an opportunity to grow in the Australian
market. Also many political and social activities happen in the country on which the
company can make program (Yu, & Lindsay, 2016).
Economic Aspects- it refers to the aspects which are related to the economic activities of both
the nations. So, the factors which can affect the economy of New Zealand are discussed below:
 The economies of the country New Zealand positively affect the nature and behavior of
people of Australia. On the basis of proper demand and supply of product in the
Australian market, the company wishes to import biotechnological products from New
Zealand only. Apart from that the major reason due to which such products are optimized
by Australia is that there is low shipping cost in the country New Zealand. As both the
counties are situated nearby due to which there is low shipping cost which can act as an
advantage of NWP to export their products to Australia (Casey, & Hamilton, 2014).
 Another major advantage to the above mentioned companies is that the rate of New
Zealand dollar is less than the rate of Australian dollar in the market if compared to the
US dollar. So, export brings more income in the country New Zealand. And it gives
advantage to Australia as well; and Australian companies have to pay less in order to
receive the products. Another factor is that as there are good terms between the
governments of both countries due to which many time the companies receives subsidies
and advantages in exporting the products in the market. The New Zealand companies are
economic as well, due to which the local people of Australia are insisted to the buy the
products from New Zealand only (Kelsey, 2015).
 People of Australia have high income in hand, which shows heir mentality in purchasing
the product in the market. So, the fact shall be taken in consideration that as new
companies provide efficient services, and people do not hesitate in purchasing products.
Thus it acts as an advantage for New Zealand Companies to export their product.

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Legal Aspects
The Australia exporting laws favors the activities of the New Zealand companies rather than
restricting their growth in the market. Because of heaving good relation, the legal laws of both
the countries assist the exporting process (Ruiz, 2017).
Task 4
Question 1
In the year 1870, the gold rush was over in the country and the export process was dominating by
the product wool, major export of wool was used to be Britain only. Due to this purpose the
finance ministers borrowed money from the nearby states. Resulting to such condition, the
country attracted heavy banking crises which dried all the reserves of the country and initiated
difficulty in transacting with their countries. In the later year the company was settled under the
name of Britain’s’ farm in south pacific. The major product exported from New Zealand cheese,
butter, meat sheep and wool (Paul, et. al., 2015). There was a colonial relationship between both
the countries due to which the name raised, as the country Britain was unable to sustain their
growth in the country due to lack of supplies. So Britain took help of New Zealand as the
company as majorly support for its existence. Thus, in this way the program was named and it
shall also be taken into accounts that New Zealand also had prior information about the country.
Britain decided to initiate free trade movement so that New Zealand can earn well in the global
context (Export.Gov, 2017).
Question 2
Wool has a major significance in the activities of New Zealand as it was the main product of
New Zealand because it didn’t deteriorate it conditions in transporting process unlike meat
export. Wool also helped the country to gain income through export till 1970’s. With the export
of products like wool and meat, major infrastructure and other expenses of the country were met.
So, it showed that this export brought surplus amount in the country. Till 1940 there was a wide
gap between export and import which started decreasing with time because the country majorly
became dependent on farming process; due to which all the requirements of the countries were

Global Business Development 13
not fulfilled. The country lacked economies of scale to develop industries (Rosin, Campbell, &
Reid, 2017).
Proceeding to which in 1930 the government encouraged people to open manufacturing
industries to reduce the dependence on imported goods, although the process started well but still
major segment of the market used to earn from agricultural activities only. But in order to gain
competence in the global market New Zealand ended their exporting of wool and dairy products
and shifted their focus on manufacturing industries to earn more profit (Zirker, 2017).
Question 3
Exporting is most important aspect for the country with the aid of which they earn and grow in
global market. Thus, the country New Zealand also gained competence by performing well in the
global market. New Zealand is world’s top 44 exporters all around the world which shows that
the country has achieved an optimum position in the market. The major export products of the
country are meat, cheese, milk powder, butter, and wool. These are the product which is supplied
worldwide. The export of dairy products gave a slighter rise in the 2017 by 11 per cent
(BusinessNZ, 2007). The march 2017 stated rise in the quarterly exports of the country which
reflects long term growth as well. Export is the major source of income in the country, major
infrastructural and technological development take place with the income of exports only. But
the fact must be noted that the economy of New Zealand has underperformed in certain areas due
geographical isolation and smallness. Further one of the upcoming businesses which are
positively affecting the exporting margin is minerals and Māori businesses. They are providing
optimum income to the country for its growth. Lastly, it shall be noted that Australia was and is
the largest importer of New Zealand good, thus it can be seen that this relationship works well in
the export market (Vanneste, 2017).
Question 4
Exporting is a major part which brings income in the country so it is very important for a country
to export products to gain competence in global world. Taking example of the country Australia,
Australia being a small country has limited stock domestic market with it, so the companies
present in that market believes in exporting their product in the international market so that they
can take advantage of economies of scale. Also if companies export with other companies

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outside their region, this rings innovation and technological adaptation in the working as well.
Also the process of export brings reserves for the country which helps them in initiating
developments for the country. Thus, in this way export matters for an organization and a country
both (StatsNZ, 2017).
Conclusion
Thus in the limelight of above mentioned events the facts that shall be noted is that, the economy
of all three companies have their different importance and significance in the global market. But
mainly USA economy has grown with maximum pace. Further talking about IT industry
company Twitter, it has flourished the market with an optimum speed. The company made use of
all the available resources to gain the market share. Further it also state the possible difference
between the countries and the exporting issues with the country New Zealand.

Global Business Development 15
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