Global Business Plan Project – Section III
In this GBP component, you will be researching the geographic, economic, political and legal concerns of your target country.
This week, you will be working on section III, ANALYSIS OF THE INTERNATIONAL BUSINESS OPPORTUNITY (SEE COURSE GLOBAL BUSINESS PLAN ASSIGNMENT OUTLINE FOR REFERENCE).
In a word document, answer the following questions in the prescribed outline format (be sure to use a title page so I know what paper belongs to whom). I only expect a few paragraphs for each section, not a complete book. A paragraph is 5 – 7 complete sentences. Please use footnotes to show me the source where you researched the information from. Sample output from previous reports are provided in the following these instructions.
A. GEOGRAPHIC INFLUENCES
a. Identify geographic factors (climate, terrain, waterways) that influence business activities in the country. (In some countries, mountains make movement of raw materials and production supplies difficult and expensive.)
B. MAJOR PRODUCTS AND INDUSTRIES
a. Describe the country’s :
i. main natural resources and agricultural products,
ii. major industries,
iii. major imports, and
iv. major exports.
v. (A country’s natural resources and agricultural products are the basis for foreign investment and exporting activities.)
C. CURRENT ECONOMIC CONDITIONS
a. Assess the country’s recent economic conditions related to GDP, inflation, interest rates, currency value, personal income, and employment. Suggest how these economic factors may attract or deter foreign investment.
a. Analyze the infrastructure of the country with regard to availability of transportation, communication, and utilities.
E. GOVERNMENT AND POLITICS
a. Describe the type of government and recent political developments that could influence the economic and business environment of the country. (For example, various events in recent years in the Middle East have contributed to an uncertainty when doing business with some countries.)
F. FORMAL TRADE BARRIERS
a. Identify formal trade barriers (tariffs and other taxes, foreign exchange controls, ownership restrictions) that might require a company to adapt its business strategy.
G. PROMOTING GLOBAL BUSINESS
a. Analyze host government efforts to attract foreign investment. (Some nations offer tax incentives to attract foreign capital.)
H. INTELLECTUAL PROPERTY
a. Discuss the country’s regulations to protect intellectual property, such as brand names, copyrights, patents, software, music, videos. (Some countries do not enforce these laws resulting in the pirating of products and lost profits for companies.)
Upload your completed report into the week 2 dropbox provided.
· Business Around the World Atlas:
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The following project segments are EXAMPLES and SAMPLE MATERIALS. Please note:
These samples were selected from several student team projects at one school and are not intended to represent a particular level of quality, and DO NOT represent a complete project.
The accuracy of content, data, and clarity of writing are NOT guaranteed; and
These samples may NOT BE DUPLICATED (with the exception of the headings).
Australia is ranked the 6th out of the world’s largest countries. It is also extremely dry and flat. They do not get much rainfall at all. Also, the land is comprised of about 20 percent desert. (The Australian Continent). These conditions make the perfect conditions for solar panels. Solar panels produce the most energy in weather that is sunny with few clouds. This would majorly influence business since solar panels would work efficiently practically anywhere in Australia when considering their geographic factors.
B.MAJOR PRODUCTS AND INDUSTRIES
Australia’s main natural resources include iron ore, coal, natural gas, gold, aluminum, and petroleum (Parliament of Australia). The main agricultural products are cattle and calves, which made of 17 percent of their agricultural production in 2018-19. Research shows that Australia specialized in meat and live animals. A few other agricultural products they produce majorly are sheep and lambs, wool, wheat, fruit, and nuts (Australian Government). The service industry dominates Australia’s major industries comprising of over 70 percent of the GDP. A few other major industries in Australia are tourism, healthcare, media and entertainment, finance, mining, manufacturing, trade, and agriculture (Junior). Australia is actually the world’s largest exporter of coal and iron ore. The top five exports, in order, are iron ore, coal, education services, gold, and natural gas. Education is the third largest export due to the high demand of international students who visit Australia to learn English or to get an education. According to the top imports, Australians love to travel. Personal/travel made up the number one import of Australia accounting for 28.6 billion dollars spent in 2016-17. The top five imports include personal travel/tourism, cars, refined petroleum, telco equipment/parts, and freight transport (SBSNews).
Considering the major products and industries of Australia I can conclude that the country’s natural resources and agricultural products would support my foreign investment of a solar panel industry. Many of the industries that thrive in Australia such as livestock farms, mining, tourism attractions, service industries are all places that could utilize and profit from investing in the solar panel industry.
C.CURRENT ECONOMIC CONDITIONS
According to World Atlas, Australia is the second largest economy in the world when regarding wealth owned per every adult. Australia has a mixed market economy, sometimes referred to as a dual economy, meaning that both private and public sector share the means of production. This has resulted in a total GDP of around 1.69 trillion making it the largest mixed market economy. COVID-19 is currently restricting economic growth, as it is in many other countries. Unemployment rates are rising, and service exports have dropped. Inflation is currently not an issue in Australia due to the virus. “Australia has recorded the largest ever quarterly fall in inflation of 1.9% after the Morrison government temporarily made childcare free due to the coronavirus crisis” (Butler). One Australian dollar equals 0.73 in United States. The current economic factors, especially considering the pandemic, are probably leaving many foreign investors scratching their heads. Before the pandemic, Australia would have been a wonderful economy to attract foreign investors, and still is, but the pandemic is presenting a variety of new obstacles and uncertainty when considering investing.
There are a variety of different transportation options in Australia. Private vehicles can be purchased or there are public car services like taxis. There are also buses, trains, trams, and ferries available for use in many parts of Australia (Australian Government). Communication in Australia is very similar to the United States so there would not be too large of a cultural barrier in that aspect. They use a lot of slang and abbreviations for words but are also very polite and use manners when requesting service and such. Their body language is also very similar to Americans in that they smile, use eye contact, and nod when listening to appear open and friendly (Veal). Utilities in Australia are also pretty similar to the United States. They mainly utilize dams, sewerage systems, power lines, storm water drains, etc. “In the coming decades, it’s expected that this sector will change considerably as it faces three main challenges: increasing demand for renewable energy sources, a growing need to invest in Australia’s energy infrastructure, and the pressure to adapt to new policies and public expectations as private and public organizations respond to environmental changes” (Nicholls). This increasing demand for renewable energy correlates to my foreign investment in the solar industry and how it could be successful in Australia.
E.GOVERNMENT AND POLITICS
The government is Australia has 3 tiers consisting of the Commonwealth/Federal, State, and Local. Like the US, Australia practices religious tolerance, freedom of speech, and association. They also have the same three branches of government as the US the legislative, executive, and judicial. However, some political practices are different from the US. For example, Australia does not have presidents. Australia is actually part of the British Empire even though it is its own nation. So, technically Queen Elizabeth II has reigned over Australia since 1952. However, Australia is operates independently from the British government and is led mostly by the prime minister of Australia and the Governor-General (ABC). I think the similarities in the legal system between Australia and the United States would aid in reducing confusion when implementing a foreign investment.
F.FORMAL TRADE BARRIERS
The most important formal trade barriers to consider currently are pandemic concerns. Australia is taking its quarantine measures very seriously and limiting a number of imports as an attempt to limit contamination risk. Also, some products many require an import permit. These permits are especially used for machinery, so this would probably be an important measure to examine as a foreign investor of solar panels. Packaging can also become a trade barrier when importing to Australia. It is not standard to import items with wood or natural packaging. Researching packaging materials and permits to import products into Australia are the main formal trade barriers (SelectUSA).
G.PROMOTING GLOBAL BUSINESS
Australia attracts foreign investors with its dynamic industries, innovation and skills, global ties, strong foundations, and resilient economy. They are a very diverse country and considered to be one of the most multicultural and multilingual which could bring attention from investors worldwide. Australia also has a very strong economy which has a high growth rate. “Prior to 2020, the economy experienced just two years of negative growth during the previous six decades. And since the last recession in 1991, our growth rate has averaged 3.2 per cent, which is higher than every other major developed economy in the world” (Australian Government). The dependable financial system and low government debt permits strategic investment in future industries and infrastructure.
Australia enforces strict intellectual property laws similar to the United States. They implement patents, trademarks, designs, and secret processes and formulae. Patent protection is used to legally not allow anyone else to manufacture or sell the patented invention in Australia. Trademark protection legally protect a business’s brand from being copied nationwide. Registering a unique domain name on the internet can also be registered in Australia. Design protection is used to protect designs, prototypes, or ideas from being copied. Copyright protection is used to encourage businesses to protect businesses from being mimicked by “knock off” brand and encourage new ideas. These are all laws that are familiar and also utilized in the United States, so it would be laws that any foreign investor from the United States would be comfortable and acquainted with.
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