Our company is selling fishing supplies including poles, nets, hooks, lobster pots, and other...

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Doing Business in Australia

Transcript of Our company is selling fishing supplies including poles, nets, hooks, lobster pots, and other...

Page 1: Our company is selling fishing supplies including poles, nets, hooks, lobster pots, and other miscellaneous fishing accessories Our target market mainly.

Doing Business in Australia

Page 2: Our company is selling fishing supplies including poles, nets, hooks, lobster pots, and other miscellaneous fishing accessories Our target market mainly.

• Our company is selling fishing supplies including poles, nets, hooks, lobster pots, and other miscellaneous fishing accessories

• Our target market mainly focuses on the commercial fisherman and some emphasis on recreational fishing

Executive SummaryProduct

Page 3: Our company is selling fishing supplies including poles, nets, hooks, lobster pots, and other miscellaneous fishing accessories Our target market mainly.

Category Data

Location Australia

Population 23,221,742

GDP/Capita $40,234

Time Difference 13 – 15hrs ahead of USA EST

Literacy Rate 99%

Political Stability Australia is considered one of the most politically stable countries in the world

Economic Stability Very stable and strong commitment to economic freedom

Executive SummaryThumbnail Sketch

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Category Language Percent

Main Language Australian English 80%

Indigenous Languages

AboriginalTasmanian

Torres Strait Island

Minor Languages Mandarin Chinese ItalianArabicGreek

Cantonese

1.6%1.4%1.3%1.3%1.2%

Executive SummaryThumbnail Sketch

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• Second easiest country to do business in

• Values sophistication in innovation

• Currency holds value and is closely similar to the United States currency

• Australian fishing industry is worth over $2B and employs around 11,600 people

• 84.7% of the population lives 50km or less from the coast

Executive SummaryAttractiveness Assumption

Page 6: Our company is selling fishing supplies including poles, nets, hooks, lobster pots, and other miscellaneous fishing accessories Our target market mainly.

• The United States provides no development assistance to Australia

• U.S. exports include machinery, vehicles, optic and medical instruments, aircraft, and agricultural products.

• U.S. imports from Australia include precious stones/ metals, agricultural products, and optic and medical instruments.

• The United States is one of the largest foreign investors in Australia.

Culture

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• Australia established diplomatic relations with the United States in 1940

• Australia and the United states shares similarities in culture, historical background, democratic values, common interests, and similar views on most major international questions

• They attach high priority to controlling and eliminating chemical weapons, other weapons of mass destruction, and anti-personnel landmines

Culture

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• The United States and Australia have an ANZUS Treaty

• Australia participates in bilateral AUSMIN consultations with the United States

• A number of U.S. institutions conduct cooperative scientific activities in Australia

• The two countries have signed a tax treaty and agreements on science and technology

Culture

Page 9: Our company is selling fishing supplies including poles, nets, hooks, lobster pots, and other miscellaneous fishing accessories Our target market mainly.

• Australia is a good country to enter because of low corruption and high economic freedom• Rank 7th world wide in corruption

• Economic Freedom Index is 82.6, ranked 3 (USA is 76)

• Judiciary system ensures strong property rights

• Financial system is relatively stable

• One of the world’s most reliable and attractive environments for entrepreneurs

Political EconomyCorruption & Economic Freedom

Page 10: Our company is selling fishing supplies including poles, nets, hooks, lobster pots, and other miscellaneous fishing accessories Our target market mainly.

• Australia has similar political freedoms to the United States• Australia has an electoral democracy, closely

similar to the United States

• There are no protections for freedom of speech

• Australia allows workers to unionize

Political EconomyPolitical Freedoms

Page 11: Our company is selling fishing supplies including poles, nets, hooks, lobster pots, and other miscellaneous fishing accessories Our target market mainly.

Category Australia United States

GDP (PPP) 914.5 billion 15.1 trillion

GDP (PPP) per capita

40,234 per capita 48,387 per capita

GDP (PPP) growth rate

2.0% growth 1.7% growth

Financial Freedom 90.0 76.0

Effective tax rate 30 % 35%

Unemployment 5.1% of the population

7.9% of the population

Inflation (2013) 3.4% 3.1%

Economic Prognosis

• Australia is considered a strong and stable economic country to do business in

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• 41.3 billion FDI inflow

• Flexible labor markets

• Low tariffs

• Ranked 21 in GCI with a score of 5.07

Economic Prognosis

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• Greenfield investment is the best choice of entering into the Australian market• Similar Language: Will keep business

operations fluid and efficient

• Politically Stable: Federal Constitutional Monarch under a parliament democracy

• Ranked 11th in ease of construction permits

Entry Modes

Page 14: Our company is selling fishing supplies including poles, nets, hooks, lobster pots, and other miscellaneous fishing accessories Our target market mainly.

• Australia is a top destination for FDI

• FDI stock grew 6.6% to a record $507B in 2011

• Australia’s commercial fishing industry is worth over $2B annually

Entry Modes

Category Australia United States

Business Freedom

95.5 90.5

Trade Freedom 86.2 86.4

Investment Freedom

80.0 70.0

Page 15: Our company is selling fishing supplies including poles, nets, hooks, lobster pots, and other miscellaneous fishing accessories Our target market mainly.

• Strategic Location: Australia has the world’s third largest fishing zone, extending up to 200 nautical miles out to sea

Entry Modes

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• Intellectual property rights on our products would be protected

• Dealing with the government wouldn’t be a problem because of low corruption, low barriers and tariffs

• Competition would be rather high as there are multiple businesses (Shimano, Wilson, Fishing Tackle Shop, Down Under Fishing Supplies) in the industry

Conclusion

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• Executive Summary: (Group)

• Culture: (Mallory Schiff)

• Political & Economic Freedoms: (Brian DeMott)

• Economic Prognosis: (Jenna Giulietti)

• Entry Modes: (Doug Atenies)

• Conclusion: (Group)

Contributions

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• "Australia." Economy: Population, GDP, Inflation, Business, Trade, FDI, Corruption. 23 Oct. 2013 <http://www.heritage.org/index/country/australia>.

• "Australia Foreign Exchange Reserves." TRADING ECONOMICS. 23 Oct. 2013 <http://www.tradingeconomics.com/australia/foreign-exchange-reserves>.

• "Australia." Freedom House. 23 Oct. 2013 <http://www.freedomhouse.org/report/freedom-world/2013/australia>.

• "Demographics of Australia." Wikipedia. 21 Oct. 2013. Wikimedia Foundation. 23 Oct. 2013 <http://en.wikipedia.org/wiki/Demographics_of_Australia>.

• "Doing Business - Measuring Business Regulations - World Bank Group." Doing Business - Measuring Business Regulations - World Bank Group. 23 Oct. 2013 <http://www.doingbusiness.org/>.

Work Cited

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• "Investor Update: Australia considered one of world's most politically stable countries - Austrade." Australia considered one of world's most politically stable countries. 23 Oct. 2013 <http://www.austrade.gov.au/Invest/Investor-Updates/2009/090420-Australia-considered-one-of-world-s-most-politically-stable-countries>.

• "Languages of Australia." Wikipedia. 23 Oct. 2013. Wikimedia Foundation. 23 Oct. 2013 <http://en.wikipedia.org/wiki/Languages_of_Australia>.

• "Paying Taxes in Australia - Doing Business - World Bank Group." Paying Taxes in Australia. 23 Oct. 2013 <http://www.doingbusiness.org/data/exploreeconomies/australia/paying-taxes/>.

• "Reports | World Economic Forum - Reports." Reports. 23 Oct. 2013 <http://www.weforum.org/reports>.

• "Starting a Business in Australia." : Startup Overseas. 23 Oct. 2013 <http://www.startupoverseas.co.uk/starting-a-business-in-australia>.

Work Cited

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• "World." Ethnologue. 21 Nov. 2013 <http://www.ethnologue.com/country_index.asp>.

• "THE HOFSTEDE CENTRE." Countries. 21 Nov. 2013 <http://www.geert-hofstede.com/hofstede_dimensions.php>.

• "Why Australia." - Reasons to consider investing in Australia. 23 Oct. 2013 <http://www.austrade.gov.au/Invest/Why-Australia>.

• "Fisheries Home." - Department of Agriculture, Fisheries and Forestry. 23 Oct. 2013 <http://www.daff.gov.au/fisheries>.

Work Cited