Economy figures of Australia Essay

The background is about the Electric Bicycles that we take from China, import them, and sell the products in Perth (Australia). We also have our own website that we can sell online to people and ship our bicycles to any where in Australia. In CIA Factbook, Australia is regarded as an example of a prosperous Western-style capitalist economy, with a per capita GDP at the level of the four dominant West European economies. Since Australia has many natural resources, the country becomes a major exporter of agricultural products, minerals, metals, and fossil fuels. Commodities account for 57% of the value of total exports, so that a downturn in world commodity prices can have a big impact on the country’s economy. In addition, the report from CIA also notes that Australian government is pushing for increased exports of manufactured goods, but competition in international markets continues to be severe. While Australia has suffered from the low growth and high unemployment characterizing the OECD countries in the early 1990s and during the recent financial problems in East Asia, the economy has expanded at a solid 4% annual growth pace in the last five years. Below is economy figure of Australia. Table 1 Economy Figures of Australia Population: 21,007,310 (July 2008 est. ) Age Structure: 0-14 years: 18. 8% 15-64 years: 67. 9% 65 years and over: 13. 3% (2008 est. ) Literacy: definition: age 15 and over can read and write total population: 99% male: 99% Female: 99% (2003 est. ) GDP: Purchasing power parity – $773 billion (2007 est. ) GDP – real growth rate: 4. 3% (2007 est. ) GDP – per capita: $37,300 (2007 est. ) GDP – composition by sector: agriculture: 3% industry: 26. 4% Services: 70. 6% (2007 est. ) Inflation rate (consumer prices): 2. 3% (2007 est. ) Industries: mining, industrial and transportation equipment, food processing, chemicals, steel Industrial production growth rate: 4. 1% (2007 est. ) Exports: coal, iron ore, gold, meat, wool, alumina, wheat, machinery and transport equipment Exports – commodities: coal, gold, meat, wool, alumina, iron ore, wheat, machinery and transport equipment Exports – partners: Japan 18. 1%, US 8. 7%, China 8. 4%, South Korea 7. 4%, New Zealand 7. 4%, UK 6. 7% (2003 est. ) Imports: $160 billion (2007 est. ) Imports – commodities: machinery and transport equipment, computers and office machines, telecommunication equipment and parts; crude oil and petroleum products Imports – partners: China 14. 3%, US 12. 9%, Japan 9. 6%, Singapore 6. 1%, Germany 5. 2%, UK 4. 4%, Thailand 4% (2007) Source: Central Intelligence Agency (CIA), 2008 The above statistics show that selling bicycle in Australia is attractive since Australia rate China as main import partners. In addition, the market for electric bicycle is quite enormous considering that the number of people at age 15-64 year accounts 67. 9% of total Australian population. 1. Technology The development of technology in Australia is extensive as Australian university encourages the innovation and invention in all aspects. In addition, the country also consider the intellectual property, which help Australian business to establish and maintain international markets for new technology (IDC, 2008). 2. Legal and Political The International trade laws and regulations assembled by a country emerged from various national backgrounds. Countries possessing different geographical structure for example, would produce different export commodities, thus results a different ‘tone’ of trade laws. Other factors such as the culture of citizens and national politic tendencies have also significant contributions in making a country’s international trade laws. The trade between Australia and China is also based on the free trade agreement commencing in 2005 in which a study conclude that there would be significant economic benefits for both Australia and China through the negotiation of an FTA. Australia’s export and quarantine laws are design to meet certain standard of quality exports goods. It emphasizes on protection towards Australia’s animals, plants, human health and the overall environment. It also emphasizes strict standard regarding certain quality requirements to meet foreign countries’ satisfaction. They believe that export trade is vital to Australia’s prosperity and high standard of living. The commitment to ensure export goods and services quality goes all the way, as Australia implement their steps of ensuring quality, which are: a. In cooperation with the industry involved AQIS makes standard requirements on export goods and services and state them in the legislation. b. Industry are guided to implement management systems to achieve compliance with the stated laws c. AQIS systems are obligated to verify the compliance between the goods/service and the laws by investigations. d. AQIS takes a final action of allowing exports activities or not allowing, in case of non compliance. 3. Culture The Australian culture is considered as the most diverse culture in the world due to the people of Australian historically comes from English People; thus the main culture in Australia is â€Å"Anglo Celtic†. However, as the globalization occurs in Australia, the country’s culture tends to be more Americanized. It suggests that product offering in Australia would in some level follow the trends in the U. S. (Mapsofworld. com, 2008). 4. Ethical Considerations and their management The last mentioned issue in international trade that will be mentioned in this paper is ethics. Business ethics refers various moral and ethical problems that can arise in business activities. The study focuses on how each individual involved within trade activities are burdened with special duties and obligations that must be performed. It emphasizes the importance of ethical guidelines in making business decisions. Some might even say that ethics form the very foundation of international economic activities. What we have been surely witness is the increasing attention on business ethics and its applications in line with the more complicated nature of business and business activities. The importance of ethical guidelines has been increasingly popular lately because of several reasons. First, there is s growing public awareness that societies have the right to expect business to function within ethical boundaries. A company is a part of its community that must live in harmony with the surrounding environment like all individuals and organizations. Furthermore, companies take their resources from their environment, which implies that these companies give something back to their community. For the least, there is an invisible social contract between business and its societies that all business activities will honor and accord with the limitations of justice (England, 2008). In the light of this growing awareness of corporate positions in the community, most companies generate and implement a code of conduct that guides their behavior to internal as well as external parties. The code of conduct represents corporate assessment of what behavior is expected out of employees and managers. Furthermore, the latest development in international business revealed the consensus upon the necessity of an international code of ethical practice to survive the global economy. These global ethical guidelines consist of the following principles: a. Integration, which means all business activities must never be out of the ethical context b. Implementation, which means changing all existing activities to match the ethical standards c. Internationalization, which demands integrity throughout the entire chain of global partnership, frees from cultural sentiments and directed toward the global context (England, 2008). Reference A Successfull Global Trader. Retrieved October 29, 2008 from http://www. dfat. gov. au/facts/search Central Intelligence Agency (CIA).(2008). World Fact book 2004: Australia. Retrieved October 29, 2008 from http://www. cia. gov/cia/publications/factbook/geos/as. html England, Lizabeth. Principles of Business Ethics. Retrieved October 29, 2008 from http://exchanges. state. gov/forum/journal/bus1background. htm IDC. (2008). Innovation & Technology Australia. Retrieved October 29, 2008 from http://www. innovation. org. au/ Mapsofworld. com. (2008). Australia Culture. Retrieved October 29, 2008 from http://www. mapsofworld. com/australia/australia-culture/.