Fdi in Australia

FDI-in Australia

Introduction

Environment- Geographical emphasis

FDI inflow

FDI in Australia- By Industry

Alternative approach

Conclusion

Australia’s Environment

Australia is a country in Oceania bordering the Indian Ocean and the Southern Pacific Ocean. Australia is comprised of mainland Australia, the island of Tasmania and several small islands in the Indian and Pacific Oceans. The terrain is mostly low plateau with deserts. Country’s population totals to 24,434,723 as of 2016. Australia is “a federal parliamentary democracy and a commonwealth realm”(1) with freedom rating of 1(5). Government control of economy is ’81.4’ (“Scale ranks countries on a basis of 1-100, with 100 representing the greatest amount of economic autonomy from government intervention”(2)). Its political risk factors are: 1.Australia’s average tariff rate is 1.8%, 2.its Corruption Perceptions Index is 13/168(4), 3.its freedom of the press rank is 31/195(5), and 4.global enabling trade rank of Australia is 19/138. “Australia has a mixed economic system in which the economy includes a variety of private freedom, combined with centralized economic planning and government regulation”(1). Australia’s macroeconomic indicators are: Australia’s GDP, GDP per capita, and GDP growth rate (annual %) are $1.1 trillion, $46,433, and 2.7% respectively, Inflation rate is 2.5%, .FDI inflow amount is $51.9 billion. Total tax rate is 47.6%. Real interest rate is 6.255%, and unemployment rate is 6%. Top industries of Australia are: Agriculture,mining, manufacturing, real estate and financial and insurance sector. Australia’s commercial risk level is A(7). Australia’s ease of doing business and ease of paying taxes ranks are 13/177(8) and 42/187 respectively. Australia ranks 5/178 in terms of economic freedom.

Australia’s WTO accession year is 1995(9) and ranks 20/136 in exporters rank and 23/136 in importers rank. Australia’s total exports and imports amounts are $187,792 million and $200,113 million respectively. Its trade balance is -$12,321 million. Australia’s top 3 export partners are: 1.China, 2.Japan, 3.South Korea. Australia’s top 3 import partners are: 1.China, 2. USA, 3. Japan. Its top 3 exports goods are: 1.Oil & mineral Fuels, 2.Ores, 3. precious stones & metals. Its top 3 imports goods are: 1.industrial machinery, 2.motor vehicles & parts, 3.Oil & mineral fuels.

Population: 23.6 million

GDP (PPP): $1.1 trillion

2.7% growth in 2014

5-year compound