Global Trade Research: Pestle Analysis of Australia

Political: Australian government type is a Federal Parliament, where people directly choose their government with the help of compulsory Voting system which is also followed by 36 other nations. Australia’s current Prime Minister is Scott Morrison who belongs to the liberal party. Currently, this county faces a few major problems such as tense relation with Indonesia, an asylum for seekers and sometimes unstable political conditions in the country.

According to the World Bank in 2016, Australia ranked 94. 09% in accountability and voice, this measure the capability and eligibility of a country’s people of choosing a government. From 1924 Australia’s voter’s turnouts are 95% which is highest in the whole world. Australia is also enjoying its good relations with other nations such as China, Japan, the United States, and India etc. Australia’s biggest trading partner is China and the second one is the European Union, in 2018 both countries launched Free Trade Agreements that will increase their trade and profit as well. In 2005 Australia – United States made free trade policies and rules and currently they both countries following that. India is also working on free trade policies with Australia and they will come in soon. JAEPA (Japan Australia Economic Partnership Agreement) is the most liberal agreement signed by Japan which helping country to grow with the latest technology. Indonesia and Australia are planning to make an agreement on trade as IA-CEPA Indonesia Australia comprehensive Economic Partnership Agreement if this made then a lot of business ways will get open for both countries. So, these are all arrangements will affect the growth of the country even boost them. So, if we start to sell Minute Maid here than it will be a great platform for the product to get a good market as well as profit. Political stability is very common these days, so companies are got habitual with these conditions, so this will not be a big problem. And conflict with Indonesia is not a big problem even they are planning to business. Minute Maid will sure get good market entry and remained there as the strongest juice ever (MarketLine, 2017).

Economic Analysis: Australian Service market is an essential aspect of their economy. The service sector contributes to Australian GDP near about 72. 18% in 2017 and in future CAGR will be 4. 2% between the years 2018 to 2022. Australia also well known for FDI (Foreign Direct Investment) this also helps the country to grow in economic sector better. According to the World Bank net direct investment is 3. 68% in 2017 of GDP. Moreover, trade and exports, monetary policies increased the country’s growth. Sometimes lack of youth power affects its performance. With the help of Mining industries, Australia is growing every day. Australian banking sector is trying to deal with funding market disruptions that are getting improved in a fast-paced from last few years. In other words, Australian deficit is shrinking now with the help of new bank policies and mining income. So, it will be a better market for our product (MarketLine, 2017).

Social Analysis: Australian government doing well in human development including healthcare, education, and income. According to ‘Human Development Report of 2018’ country is in the second position among the 189 world countries. Education and health sectors are on growth and literacy rate and life expectancy is approximately 99% and 82. 3 years as well. A lot of people came from different countries to Australia to do the study. On the other hand side, society is suffering from inequality which leads to myriad problems for political, social and economic conditions also for the government. In 2017 the government spent 9. 7% expenses on healthcare. Low population is creating problems for the economic sector. Overall, Australia’s social conditions are far better than other countries that will help new entrants in the market.

Technology analysis: Australia has a well – developed industry in terms of online shipping and E-Commerce. More than five million households utilize the internet across Australia. So, it can be easy to find a market for our product. The government launched an (NBN) National Broadband Network in 2017 to the Australian. It is expected that the completion of this project makes a market more competitive regarding retail broadband and telephonic services. Majority of the masses willing to buy products through the internet. In between 2014 and 2015, the serviceable premises increase in their count. Australia at the zenith for the creation of enterprises. Australia has an excellent rank of its OCED peers. There are more employment opportunities, so it depicts that there is a strong entrepreneurial culture in Australia. Commonwealth Science Council was rendered the advice to the government on science and research issues that are suffered by the country. Through this council government investing in research and science for making strong collaboration with scientists, government and industriesLegal analysis: Australia has one of the open economies in the world according to its OCED having a strong business atmosphere. In 2018 business index, Australia was on 14th ranked out of 190 countries.

Australia was the highest rank on almost all measure economic freedom. Australia has the strongest rights among the OCED nations. Australia scores 11 on a scale of 0 to 12 as per the “Legal Right Index”. These scores depict the success of the country by implementations of its policies and regulations as well. The rights of the borrower and lenders are protected by the bankruptcy law in the country. Environmental analysis: Australia has a good record in terms of environmental performance and this is also shown in the “Environmental Performance Index” as evidence. Australia was ranked on 21st out of 180 countries in 2018 as per the “Environmental Performance Index”. The share of renewable, total electricity production increased from 10% in 2010-2011 to 15% in 2015-2016. Along with, Coal’s share of electricity declined 68% in 2010-2011 to 63% in 2015-2016. The government put efforts to increase the solar energy through the MRET scheme since 2001, which was merged later with SRES and LRET. Apart from this, Australia can attract tourism and growing their tourism industry day by day and it attracts the tourist across the world. There are many Indian and the Pacific Ocean and numerous beaches to attract the tourist (MarketLine, 2017).