INT 113 Final Project Part 2 (Mod 6) - Australia PDF

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Part 2 of Final Project on Australia for Module 6 of INT-113, Introduction to International Business....

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Australia Country Analysis

Shauna McKie

Introduction: Australia Rationale (Austin, 2020)  Ranked 5th best country overall, including 5th for perceived quality of life  Listed 8th for cultural influence  Top 10 in education, comfortable retirement & places to travel alone  Only country that is also a continent

Location and Geography  Located between the Indian and South Pacific Oceans within the Oceanic Region (CIA, 2020)  Known as the smallest continent in terms of total land area (National Geographic, 2020)  Does not share land borders with any countries, however shares maritime borders with Indonesia, Timor-Leste, Papua New Guinea, Solomon Islands, and New Zealand (World Atlas, 2020)

(World Atlas, 2020)

Sociocultural Environment Country Composition

(CIA, 2020)

Population Age & Gender Distribution 12000000

 Population of 25,466,459 as of July 2020  Literacy Rate for citizens 15 years and above is 99%  86.2% of the population is urban, with a 1.43% annual rate of urbanization  Melbourne, Sydney, Brisbane, Perth, Adelaide and Canberra (the capital) are the most heavily populated cities within the country  The most well-represented major religions in Australia are Protestant (23.1%) and Roman Catholic (22.6%), while 30.1% of the population practices no religion  Australia spends 5.3% of their GDP toward education  The majority of the population is between the ages of 25 and 54 years old (41.15%, with 0 to 14 coming in next at 18.72%

10000000

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0 0-14 Years 15-24 Years 25-54 Years 55-64 Years 65+ Years

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Sociocultural Environment Values and Communication

(Global Affairs Canada, 2020)

 Australia has a laid-back, informal communication style, using a lot of slang terminology, even in professional settings     

Citizens are self-reliant and independent, with a high individualism score of 90 Personal space is expected and respected in Australian culture Australians take pride in their achievements and resolve business conflicts on the individual level, with a drive to win With a more normative culture, Australia tends to look for quick results rather than making future plans Leisure is important to Australians, who tend to be optimistic and believe life is to be enjoyed

Business Etiquette

(Commisceo Global, 2020)

 Direct communication is expected and valued in Australian business culture  Appointments are important to Australians, and should be scheduled as far in advance as possible  Bargaining is not a typical practice – negotiations are handled quickly, and initial proposals are expected to have little room for negotiation  Decisions are made at the top of a company, with input from subordinates  Conservative business attire is expected in bigger cities, while a more relaxed dress code may be observed within tropical areas, depending on the type of job

Sociocultural Environment: Observation Deck Business Observations  Direct communication lends well to quick negotiation styles expected within business dealings  Additionally, direct communications helps to remove “guess work” to determine a person’s true message during a business interaction, allowing focus on the task at hand  High levels of individualism, a drive to “win” and the direct communication style may stifle input from some employees who are less outspoken; managers should ensure all team members are able to contribute ideas and concerns  May be beneficial for managers to provide alternate methods to communicate, such as an open door policy, or anonymous suggestion boxes

Political-Legal Environment Government and Ideologies

(LibGuides at Melbourne, 2020)

 Australia operates under federal parliamentary democracy under a constitutional monarchy  Queen Elizabeth II acts as Chief of State, represented by Governor David Hurley since July 2019  Prime Minister Scott Morrison has headed the government since August 2018  Social action groups, institutes and environmental action groups heavily influence political interests within Australia through organizations such as GetUp, The Australia Institute, and Safe Climate Australia

Corruption

(Transparency International, Corruption Perceptions Index, 2020)

 Australia has shown a proactive approach to combating bribery, with strong improvements noted between evaluations completed in 2012 and again in 2017  Because Australia has a high level of exports and investments in high-risk sectors, they must remain vigilant  Australia’s relatively high corruption perception index of 77 indicates a low level of public sector corruption  34% of individuals felt corruption had increased over a 12-month period, which should be monitored (OECD, 2017)

Political-Legal Environment Trade Regulations and Legal Considerations

(Parliament of Australia, 2020)

 Australia is one of 163 members of the World Trade Organization.  The country has made several bilateral and regional trade agreements with other countries, including the U.S., Thailand, Chile, and Singapore.  Australia participates in the Trans-Pacific Partnership; the 12 countries involved account for approximately 40% of global GDP.  The United Nations Security Council (UNSC) (under international law) and the Australian Autonomous (under Australian foreign policy) sanctions regimes are implemented in Australia (Department of Foreign Affairs and Trade, 2020).

Political-Legal Environment: Observation Deck Business Observations  The vast amount of coastline surrounding Australia increases opportunity for corrupt practices.  Australia needs strong oversight to mitigate corrupt business practices across many sectors.  With a high corruption perception index, Australia may be a deterrent for corrupt businesses or individuals  Businesses should perform regular internal audits and assessments of their processes and personnel, and consider using third-party audits performed to ensure independence.  Australia should continue to seek criminal charges for acts of corruption, as recommended by the OECD.

Economic-Infrastructural Environment Economic Measures Int Inter er erest est Rates Rates::

0.25%; Australia’s interest rate is at a record low of 0.25% (Trading Economics: Australia Interest Rate, 2020)

Unem Unemplo plo ploym ym ymen en ent: t:

6.8% in August 2020, a decrease from July’s rate of 7.5% (Australian Bureau of Statistics, 2020)

Inflat Inflation: ion:

-0.3% year-on-year in the 2nd quarter of 2020 (Trading Economics: Australia Inflation Rate, 2020)

GDP Real Gro Growth wth Rate:

1.897% in 2019, down from 2.94% in 2018 (The World Bank: GDP Growth (Annual %) – Australia, 2020)

Exc Exchan han hange ge Rat Rates: es:

Australian dollars (AUD) per U.S. dollar (USD): 1.311 (2017 estimate) (CIA, 2020)

Exc Exchan han hange ge Rat Rate e Regim Regime: e:

Australia has used a floating exchange rate since 1983 (Reserve Bank of Australia, 2020)

GDP:

$1.393 trillion USD (2019) (The World Bank: Australia, 2020)

Labor For Force ce ce::

12.91 million (2017 estimate) (CIA, 2020)

Major Indus Industrie trie tries: s:

Mining and Quarrying, Manufacturing, Financial & Insurance Activities, Real Estate Activities, and Wholesale Retail & Trade (Australian Government, 2020) $1,019.5 billion ASD (Australian Government, 2020)

FDI Rat Rates: es:

Economic-Infrastructural Environment Trade

Economic-Infrastructural Environment

Railway Stations:

Airports: Sydney, Melbourne, Brisbane, Perth (Sawe, 2017) Seaports: Brisbane, Cairns, Darwin, Fremantle, Geelong, Gladstone, Hobart, Melbourne, Newcastle, Port Adelaide, Port Kembla, Sydney (CIA, 2020) Reference image, right.

Internet Users:

21,419,302 total users (CIA, 2020)

Mobile Providers:

Australian mobile carriers include Telstra, Optus, and Vodafone (International Direct Dial, 2020) Rank: 18 (2018) Score: 3.75 (2018) (The World Bank: Country Score Card, 2020)

Major Airports/Seaports:

Logistics Performance Index Rating:

(Rail Maps, 2020)

Economic-Infrastructural Environment: Observation Deck Business Observations

Final Recommendations Market Entry Strategies

Cultural Awareness

References 

Austin, Shelbi. 15 Jan 2020. The 25 Best Countries in the World. Retrieved from https://www.usnews.com/news/best-countries/slideshows/the-25-best-countries-in-theworld?slide=22.

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Australian Trade and Investment Commission. 24 Sep 2020. FAQ. Retrieved from https://www.austrade.gov.au/contact/faqs/do-i-need-to-charge-goods-and-services-tax-gst-onsales-to-overseas-customers.

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Central Intelligence Agency (CIA). 04 Aug 2020. The World Factbook: Australia. Retrieved from https://www.cia.gov/library/publications/the-world-factbook/geos/as.html.

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Commisceo Global. 09 Sep 2020. Australia - Language, Culture, Customs and Etiquette. Retrieved from https://www.commisceo-global.com/resources/country-guides/australiaguide.

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Department of Foreign Affairs and Trade. 24 Sep 2020. Australia and Sanctions. Retrieved from https://www.dfat.gov.au/international-relations/security/sanctions/Pages/aboutsanctions.

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Fair Work. 24 Sep 2020. Leave. Retrieved from https://www.fairwork.gov.au/leave.

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Fair Work, 24 Sep 2020. Maternity & parental leave. Retrieved from https://www.fairwork.gov.au/leave/maternity-and-parental-leave.

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Fair Work. 24 Sep 2020. Minimum Wages. Retrieved from https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&ved=2ahUKEwix7sDJ_ILsAhVIHc0KHaMsAa0QFjACegQICxAE&url=http%3A%2F%2Fwww.fairwork.gov.au %2Fhow-we-will-help%2Ftemplates-and-guides%2Ffact-sheets%2Fminimum-workplace-entitlements%2Fminimum-wages&usg=AOvVaw2aC9XQxHE-HOzrjPeiNnTb.

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Fair Work. 24 Sep 2020. Paid sick and carer’s leave. Retrieved from https://www.fairwork.gov.au/leave/sick-and-carers-leave/paid-sick-and-carers-leave.

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Global Affairs Canada. 09 Sep 2020. Country Insights: Australia. Retrieved from https://www.international.gc.ca/cil-cai/country_insights-apercus_pays/ci-ic_au.aspx?lang=eng.

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Hofstede Insights. 09 Sep 2020. Compare Countries: Australia. Retrieved from https://www.hofstede-insights.com/product/compare-countries/.

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LibGuides at Melbourne. 17 Sep 2020. Politics - National and Global: Political Interest Groups- Australia. Retrieved from https://libguides.mhs.vic.edu.au/politics/Political_Interest_Groups_Australia.

References (cont.) 

MacroTrends. 19 Aug 2020. Australia Literacy Rate 1990-2020. Retrieved from https://www.macrotrends.net/countries/AUS/australia/literacyrate#:~:text=Adult%20literacy%20rate%20is%20the,a%200%25%20increase%20from%202015..

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National Geographic. 19 Aug 2020. Australia and Oceania: Physical Geography. Retrieved from https://www.nationalgeographic.org/encyclopedia/oceania-physical-geography/.

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OECD. 19 Dec 2017. Australia takes major steps to combat foreign bribery, but OECD wants to see more enforcement. Retrieved from http://www.oecd.org/corruption/australiatakes-major-steps-to-combat-foreign-bribery-but-oecd-wants-to-see-more-enforcement.htm.

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OECD. 30 Jul 2019. Consumption Tax Trends* - Australia. Retrieved from https://www.oecd.org/tax/consumption/consumption-tax-trends-australia.pdf.

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Parliament of Australia. 24 Sep 2020. The current state of trace policies in Australia. Retrieved from https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/BriefingBook45p/TradeAgreements.

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Trading Economics. 24 Sep 2020. Australia Sales Tax Rate – GST. Retrieved from https://tradingeconomics.com/australia/sales-tax-rate.

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Transparency International. 17 Sep 2020. Corruption Perceptions Index. Retrieved from https://www.transparency.org/en/cpi/2019.

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Transparency International. 17 Sep 2020. Transparency International Australia. Retrieved from https://www.transparency.org/en/countries/australia.

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WorldAtlas. 19 Aug 2020. Australia. Retrieved from https://www.worldatlas.com/webimage/countrys/oceania/au.htm....