Factors Affecting International Business in Australia - Paper Example

Introduction

For over a century, Australia has taken pride in building public and private business institutions. The country is a beacon of stability that attracts business owners to set up more businesses within the state. International businesses, however, are likely to be affected by some factors in Australia. In this paper, the focus is to analyze religion, government, and technological structures as factors that influence Australia's business. Further analysis of how they affect global trade in Australia has also been discussed.

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Religion

Since the era of civilization, religion, and religious beliefs have had the most powerful influences on human behavior. Human religions vary all over the globe but create the same impact everywhere in the world. One of the religious factors that might be affected by a business is ethics. Religion promotes particular ethics. Conducting business in Australia is likely to change ethics in the sense of profits and marketing. The level of religious honesty and ethics in doing business is expected to be affected, considering the competitive nature of Australia's business environment. Australian business owners have been forced to drop some religious ethics and values to maximize profits (Van Buren et al., 2019). For Example, Christianity recommends that Sunday be a holy day where believers should rest from the whole week's work. However, it is also on Sunday that the restaurant business in Australia receives the highest profits considering many people are taking rest from their regular jobs and visiting the restaurant as frequently as possible. A Christian business owner in Australia is likely to drop the Sunday doctrine of keeping the day holy and opening their restaurant to gain profits. As explained above, the business environment in Australia is expected to influence business owners' religious beliefs. Religion is also likely to impact businesses. For instance, businesses looking to increase their market value might target a religious group by providing community social responsibilities (CSR). CSR boosts a business's image and brand, making religious people acquire goods and services from the business as they want to be associated with the societal good things that the business is doing. International companies targeting the Australian religious market have to invest big in CSRs within the country to attract religious groups.

Government

The Australian government is also another factor that influences business in Australia. The government establishes regulations and policies that guide the establishment and continuity of businesses in Australia. For Example, the minimum wage policy in Australia is compulsory, which is likely to directly affect an SME making a little profit not enough to cater to the wage bill of its employees as recommended by the government (Blackburn, 2016).

For international businesses aiming to make a breakthrough in the Australian business environment, they have to be aware of the government rules regarding taxation, spending, and stability. The Australian government advantage for international businesses is that it increases taxes and reduces taxes that have a direct impact on business only after discussions with the business owners (Blackburn, 2016). This discussion creates a proper government environment for international businesses

Technological Structures

As a country and a continent, Australia has one of the world's most developing technological structures. 2% of all scientific projects in Australia target technology and innovation (Azar & Ciabuschi, 2017). This impressive analysis is proof of improving technological structures in Australia. International business in Australia has a vast opportunity to explore the growing Australian structure (Azar & Ciabuschi, 2017). The technology structure provides an opportunity for efficient business operations by enhancing communication with customers, receiving direct feedback from the customers, and enhancing business relations, cultures, and security.

As explained in the above paragraphs, even though Australia enjoys political stability, which is positive for international business, other factors also influence global companies. Factors like religion, technological structures, and the government influence international business in ways that have been mentioned in the prior discussion.

References

Azar, G., & Ciabuschi, F. (2017). Organizational innovation, technological innovation, and export performance: The effects of innovation radicalness and extensiveness. International Business Review, 26(2), 324-336. https://ideas.repec.org/a/eee/iburev/v26y2017i2p324-336.html

Blackburn, R. A. (2016). Government, SMEs and entrepreneurship development: Policy, practice and challenges. Routledge. https://books.google.co.ke/books?hl=en&lr=&id=4WwGDAAAQBAJ&oi=fnd&pg=PP1&dq=Australian+government+policy+and+international+business&ots=SY5uT_PkXW&sig=vEefoniku0Lyj9cTm4-5cPn9Yfo&redir_esc=y#v=onepage&q=Australian%20government%20policy%20and%20international%20business&f=false

Van Buren III, H. J., Syed, J., & Mir, R. (2020). Religion as a macro social force affecting business: Concepts, questions, and future research. Business & Society, 59(5), 799-822. https://journals.sagepub.com/doi/full/10.1177/0007650319845097