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Australia and trade
1.
2. INTRODUCTION
• Australia comprises of the mainland of the Australian
continent, the island of Tasmania and
numerous smaller islands.
• It is the world's sixth largest country by total area.
• Australia is the world’s 12th largest economy.
• It has the world's 5th largest per capita income.
• Australia's military expenditure is the world’s 13th
largest.
• Australia ranks highly in many international
comparisons of national performance.
• Australia is a member of the G20, OECD, WTO, APEC,
UN, Common Wealth, ANZUS & the Pacific Islands
Forum.
3. COUNTRY HISTORY
• Australia's first inhabitants: The Aboriginal people(50,000 -
60,000 years ago).
• 1640: Dutch are known to have explored the coastal regions .
• 1770: Captain James Cook is credited with Australia's discovery.
• 1788: The first European settlement in Australia.
• 1830: established as a penal colony with the no. of free settlers
increasing.
• 1852: Transportation of convicts to the eastern colonies was
abolished.
• 1868: Transportation of convicts to the western colonies was
abolished.
5. GEOGRAPHICAL SETTING
• Island continent
• World's sixth largest country (7,682,300 sq km).
• Latitude: 27°00' South
• Longitude: 133°00' East
• Capital: Canberra
• Climate: temperate weather for most of the year.
• Topography:
i. Sandy eastern coastal plain
ii. Eastern highlands
iii. Central plains
iv. Western plateau
6. SOCIAL INSTITUTIONS
I. FAMILY: no distinction between men’s and
women’s work.
II. EDUCATION: Australia follows the three-tier
model.
III. LITERACY RATE: Age 15 and above can read
and write , 99% of population is educated.
7. SOCIAL INTITUTIONS
IV. POLITICAL SYSTEM: Two party system in
which voting is compulsory.
V. LEGAL SYSTEM:
• 9 legal systems( 8 state and territory systems
& 1 federal system)
• State and territory criminal laws that mainly
affect the day-to-day lives of most
Australians.
IV. SOCIAL ORGANISATION: Four tier structure
8. SOCIAL INSTITUTIONS
VII.RELIGION:
Column1
christianity 61.1%
no religion 22.3%
undeclared 9.4%
buddhism 2.5%
islam 2.2%
hinduism 1.3%
other religions 1.2%
9. LIVING CONDITIONS
• Diet and nutrition:
i. significant percentage of Australians are
overweight and obese and suffer from
conditions associated with diets of excess.
ii. Australia has the highest rates of skin cancer
in the world
• Clothing:
12. LIVING CONDITIONS
• Social securities: refers to a system of social
welfare payments provided by Commonwealth
Government of Australia. These payments are
administered by the Department of Human
Services
• Health care: provided by both private and
government institutions. The Minister for Health
and Ageing, administers national health
policy, elements of which (such as the operation
of hospitals) are overseen by individual states.
13. LANGUAGE
• OFFICIAL LANGUAGE: English
• LANGUAGES:
english 78.5%
chinese 2.5%
italian 1.6%
greek 1.3%
arabic 1.2%
vietnamese 1%
14.
15. • Current population: 22,015,576
country comparison to the world: 53
• Growth rate : 1.126%
country comparison to the world:105
• Birthrate: 12.28 births/1,000 population country comparison to
the world: 161
16. • Distribution of population:
– Age:
– Ethnic groups: White
92%, Asian 7%, Aboriginal and
other 1%
– Geographic areas: Urban
population 89% of total
population
– Net migration rate: 5.93
migrant(s)/1,000 population
(2012 est.)country
comparison to the world: 17
17. • GDP: 3.3% (2012 est.) country
comparison to the world: 103
• Personal inc. per capita:
$42,400 (2012 est.) country
comparison to the world: 20
• Inflation rate: 2.1% (2012 est.)
country comparison to the
world: 33
• Labour force: 12.27 million
(2012 est.) country comparison
to the world 43
18. • Transportation:
– Modes:
• Airports: 467 (2012)country comparison to the
world:18
• Pipelines: Gas 27,900 km; liquid petroleum gas
240 km; oil 3,257 km; oil/gas/water 1 km (2010)
• Railways: 38,445 km country comparison to the
world: 7
• Roadways: 823,217 km country comparison to the
world: 9
• Waterways: 2,000 km (mainly used for recreation
on Murray and Murray-Darling river systems)
(2011) country comparison to the world: 43
– Ports and terminals:
Brisbane, Cairns, Dampier, Darwin, Fremantle, Gl
adstone, Geelong, Hay Point, Hobart, Jervis
Bay, Melbourne, Newcastle, Port Adelaide, Port
Dalrymple, Port Hedland, Port Kembla, Port
Lincoln, Port Walcott, Sydney
19. • Communication system:
• Telephones - main lines in use:
10.57 million (2011) country
comparison to the world: 20
• Telephones - mobile cellular: 24.49
million (2011) country comparison
to the world: 43
• Internet country code: .au
• Internet hosts: 17.081 million
(2012) country comparison to the
world: 8
• Internet users: 15.81 million
(2009) country comparison to the
world: 25
• Broadcast media: The Australian
Broadcasting Corporation (ABC) &
Special Broadcasting Service (SBS)
21. Bop situation
• Australia has a balance of payments that is more than 7 per cent of GDP negative.
• In trade terms, the Australian economy has had persistently large current account deficits for
more than 50 years. One single factor that undermines balance of payments is Australia's
narrow export base.
• Dependent upon commodities, the Australian government has endeavoured to redevelop
the Australian manufacturing sector. This initiative, also known as microeconomic
reform, has helped Australian manufacturing to grow from 10.1% in 1983-1984 to 17.8% in
2003-2004.
• There are other factors that have contributed to the extremely high current account deficit
that Australia has today. Lack of international competitiveness and heavy reliance on capital
goods from overseas might increase Australia's current account deficit in the future.
22. Counter trading
– develop new markets (71%), – Increased costs (68%),
– increased sales potential (67%), – involved complex negotiations (64%),
– built long-term strategic alliances – raised problems with pricing brought
(62%), difficulties in re-selling countertraded
goods (59%),
– Strengthens the firm's competitive
position (61%), – consumed time in negotiations
(55%),
– increased the potential for market
share (59%), – could find no use for countertraded
goods in-house (55%)
– developed markets for new
products and/or services (55%),
23. Counter trading
• Forms of Countertrade Practised
– Counter purchase, offset and switch are the
major forms of countertrade. Barter and
compensation occurred much less frequently.
• Countries Involved
– Indonesia, India, China, U.S.A., U.K., Burma, Japa
n, and
Malaysia, Argentina, Brazil, Hungary, Iran, Libya
and Syria.
• Product Categories Countertraded
– industrial raw materials, components,
– agricultural raw materials.
– Semi-finished and finished goods occurred much
less frequently in countertrade.
– inputs and consumer goods are the primary
Australian countertrade imports.
24. Foreign aid
• Australia does not receive international aid. If at all
the need funds, they source it from:
– Private entities in Australia
– Private Parties abroad
• The 2012-13 Budget will increase Australia’s Official
Development Assistance (ODA) to $5.2 billion
25. Foreign investment
• Australia's abundant and diverse natural resources
attract high levels of foreign investment and include
extensive reserves of coal, iron
ore, copper, gold, natural gas, uranium, and
renewable energy sources.
• The level of FDI in Australia is estimated to have
grown by about 60% in the five years to 2010. The
largest contributors to the increase were
mining, manufacturing and finance and insurance
26. Industry $ Million % share of total
Agriculture, forestry and 669 0.1
fishing
Mining 151,065 31.9
Manufacturing 88,481 18.7
Electricity, gas and water 9,587 2.0
Construction 16.886 3.6
Wholesale and retail trade 44,500 9.4
Accommodation, cafes and 5,855 1.2
restaurants
Transport and communication 43,331 9.1
Finance and insurance 67,653 14.3
Property and business services 25,174 5.3
Other services 1,627 0.3
Unallocated 18,845 4
27. Foreign Direct Investment
• Stock of direct foreign investment - at
home:
– $598.7 billion
• Stock of direct foreign investment -
abroad:
– $496.4 billion
28. Major exports
• Exports:
– $263.9 billion (2012 est.)
• Exports - commodities:
– coal, iron
ore, gold, meat, wool, alu
mina, wheat, machinery
and transport equipment
• Exports - partners:
– China 27.4%, Japan
19.2%, South Korea
8.9%, India 5.8% (2011)
29. Major imports
• Imports:
– $258.1 billion (2012 est.)
• Imports - commodities:
– machinery and transport
equipment, computers and
office
machines, telecommunication
equipment and parts; crude oil
and petroleum products
• Imports - partners:
– China 18.5%, US 11.4%, Japan
7.9%, Singapore 6.2%, Germany
4.7%
30. Exchange rates
Australian dollars (AUD) per US dollar
– 0.963 (2012 est.)
– 0.9695 (2011 est.)
– 1.0902 (2010)
– 1.2822 (2009)
– 1.2059 (2008)
31. Trade Restrictions
• Trade Policy
– Australia began to reduce its tariff including in its most protected industries such
as automobiles and textiles in the 1980s.
– The Australian economy has since reaped the rewards of tariff reduction
through lower prices of imported business inputs, increased productivity and
improved international competitiveness.
• Australian Free Trade Agreements
– Australia has concluded different free trade agreements with New
Zealand, Singapore, the USA and Thailand.
– Currently it is pursuing free trade agreements with China, Malaysia and
ASEAN, Japan, the Gulf Cooperation Council and Chile, and conducting a joint
study on an agreement with South Korea
• Product Standards and Consumer Protection
– Australia is a signatory to the WTO Standards Code and has acceded to the WTO
Agreement on Technical Barriers to Trade.
– However, Australia still maintains some restrictive standards requirements
particularly quarantine and health restrictions that have an impact on the free
flow of goods.
32. Import Controls
• There are no special requirements for applying an import licence, nor are
there any quotas on imports. However, under the Customs (prohibited
Imports) Regulations, controls take the form of –
– a) an absolute prohibition meaning that import of these goods is banned
in any circumstances; and
– b) a restriction where imports are allowed only if written authorisation is
obtained from the relevant authorities, or if compliance with certain
regulations is met. For some commodities, import permits are required to
facilitate clearance of goods.
• Items subject to control include animals and animal products;
narcotics, psychotropic and therapeutic drugs; certain chemicals and primary
commodities; firearms and certain weapons; motor vehicles; and certain
dangerous goods.
34. Tariffs & custom Duties
• Customs Valuation and Tariff
– Australia adopted the Harmonised Commodity Description and Coding System (HS).
– About 86% of tariff rates now range between zero and 5%, except certain automobile
products and the textile, clothing and footwear commodities.
– The average applied most-favoured-nation (MFN) rate for industrial products is 4.6%,
while the applied MFN tariff for agricultural products is less than 1%.
• Customs Clearance
– Importers wishing to clear their own goods should contact the Customs Information and
Support Centre for advice on Customs requirements and operating hours.
– Customers should be aware of their obligations and base on their assessments of import
procedures. Penalties may be imposed for the submission of incorrect or misleading
information.
– Controls on certain goods are maintained to meet health and safety requirements or
labelling, packaging or technical specification requirements.
• ST and Other Taxes
– Goods and services tax @ 10% (GST) was introduced in 2000 and is payable on most
goods and services imported into Australia except for some essential commodities.
35. Channels of distribution
• Import export agents
• Wholesale middlemen
• Warehousing
• Retailers
• Penetration of urban
and rural mkts
38. Introduction Of the product and
company
C A LO S
HI VER
A vent ur e st ar t ed by :
I sha Sanghr aj ka
Pooj a Pat el
Poor vi Shukl a
R adhi ka Menon
A com pany est abl i shed i n 2010 and
under t akes expor t of var i ous f l avor ed
t eas t o count r i es l i ke A er i ca, U t ed
m ni
K ngdom U E and i s cur r ent l y pl anni ng
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t o ent er t he A r al i an M ket .
ust ar
41. Product Package
Set of 15 Tea bags (AU ) : 7
D
Pow ed M xt ur e (100gm D 11
der i )(AU ):
42. Resource requirement
Fi nance (Sel l i ng)
• R m er i al – R 900,000
aw at s
• Adver t i si ng – R 10,00,000
s
– Tv C m ci al R 5,50,000
om er s
– H di ngs R 2,50,000
oar s
– C m ssi on – R 200,000
om i s
• D st r i but i on – R 15,00,000
i s
43. Resource requirement
Personnel
I. 50 factory wokers
II. 5 export/import agents (in India)
Production capacity
I. 3000 per month (includes buffer stock 200 units)
47. Consumer buying habits
– Small quantities
– Frequent purchases
– Quick mix
– Lot of importance to flavour
– Health conscious
– Switching from coffee for health reasons
48. • Stationery
products
Globus
stationery
Schools and
Offices
49. Distribution channel
• Typi cal r et ai l out l et s
– W w t hs
ool or
– Saf ew ay
– C es Super m ket
ol ar
– Ar r ow Super m ket
ar
– Foodw ks
or
– C co
ost
50. Australian Agent – Stuart Alexander
and Co.
• An Australian-
based
international
marketing and
importing
company, known
for importing
and marketing
51. Promotion
• Advertising - Ideaworks
• Target market – 20years and above
(mainly the major cities)
• Positioning – Flavorful and healthy
choice
• Sales promotion:
– Free Samples with The Australian
(newspaper)
– Tie up with Tv Shows
– TV Commercial
– Hoardings
– Stalls in malls and supermarkets
– website
52. Our product and our competitors
product
Brand name CHAI LOVERS CHAI
Features Ayurvedic Tea & Indian Spice Mix & Organic Tea
Masala flavors
Package 50gm, 100gm 50gm, 100gm
Prices AUD 7, AUD 11 AUD 7.50, AUD 12
Promotion methods Stalls, tea sets, newspapers, Tea shirts & Festivals
tv shows
Distribution channels Stuart Alexander Cater for events,
supermarkets
53.
54. REGULATIONS
• Tea is among the restricted items that can imported into Australia
• Customs requirements: All goods imported into Australia must be cleared
by the Australian Customs and Border Protection Service .
• Quarantine requirements: Finding out about quarantine regulations is a
must when importing goods. If the goods are subject to quarantine
regulations, you need to apply for an importing permit and allow time for
quarantine.
• If you import plant, animal, mineral or human products, Australian
Quarantine & Inspection Service (AQIS) will need to inspect and/or treat
your products for pests or diseases.
• Assistance for importers: Investigate whether concessions are available
for your import. Concession schemes may allow you to import goods for
free, at a reduced rate or on a deferred duty payment.
• Labelling requirements: You may need to label your imported goods in a
certain way, in addition to the general labelling regulations set out by
the Competition and Consumer Act 2010 (CCA).
1st:Australia is a unique and diverse country in every way - in culture, population, climate, geography, and history.3rd:A highly developed country and one of the wealthiest,6th: such as quality of life, health, education, economic freedom, and the protection ofcivil liberties and political rights.[18]
Australia's first inhabitants, the Aboriginal people, are believed to have migrated from some unknown point in Asia to Australia between 50,000 and 60,000 years ago.While Captain James Cook is credited with Australia's European discovery in 1770, a Portuguese possibly first sighted the country, while the Dutch are known to have explored the coastal regions in the 1640s.The first European settlement of Australia was in January 1788, when the First Fleet sailed into Botany Bay under the command of Captain Arthur Phillip. Originally established as a penal colony, by the 1830s the number of free settlers was increasing. Transportation of convicts to the eastern colonies was abolished in 1852 and to the western colonies in 1868.
Australia, the smallest among the continents of the world, Lying southeast of Asia, between the Pacific and Indian oceans, Australia, the world's smallest continent, is almost completely surrounded by ocean expanses. Australia 's latitude and longitude has given it a particular type of climate. In the south and eastern part of Australia the weather is generally temperate where summer and winter climate is not marked by extremities and is enjoyable. But in the northern part of Australia the climate is very hot and humid during summer and cold in winter. Rainfall is also very moderate in Australia making it an arid climatic country.The continent of Australia is divided into four general topographic regions: (1) a low, sandy eastern coastal plain; (2) the eastern highlands, ranging from 300 to more than 2,100 m (1,000–7,000 ft) in altitude and extending from Cape York Peninsula in northern Queensland southward to Tasmania; (3) the central plains, consisting largely of a north-south series of drainage basins, including the Great Artesian Basin, which underlies about 1,751,480 sq km (676,250 sq mi) of territory and is the most extensive area of internal drainage in the world; and (4) the western plateau, covered with great deserts and "bigger plains" (regularly spaced sand ridges and rocky wastes), rising 300 to 600 m (1,000–2,000 ft) high and constituting most of the western half of the continent.
Family: It is not unusual for men to wash dishes and vacuum the house or cook meals, while women do the gardening and go out to work to help support the family. Family pets, such as cats and dogs, are special to the family and are treated with affectionEDUCATION:responsibility of state and federal governments to provide a system of free and secular government schools open to all in order to spread the benefits of education as widely as possible.includesprimary education (primary schools), followed by secondary education (secondary schools/high schools) and tertiary education (universities and/or TAFE colleges).
POLITCAL SYSTEM: The politics of Australia take place within the framework of a federal constitutional parliamentary democracy and constitutional monarchy. Australians elect parliamentarians to the federal Parliament of Australia, a bicameral body which incorporates elements of the fused executive inherited from theWestminster system, and a strong federalist senate, adopted from the United States Congress. Australia largely operates as a two-party system in whichvoting is compulsory. SOCIAL ORGANISATION: Class in Australia is based around a four tier structure. Starting from the bottom, the under class is the lowest class, with incomes at or below the poverty line, and is primarily made up of long term welfare recipients, the unemployed, the homeless and poverty-stricken, and who are usually permanently disenfranchised with extremely limited life chances (McGregor, 1997, p. 261) Above this group is the working class, usually defined as from unskilled to skilled blue collar workers such as tradespeople, factory workers and labourers . They are distinct from the under class as they usually have jobs, higher income, at or slightly above the basic wage, and are somewhat more financially secure (McGregor, 1997, pp. 181-182). Above the working class is the middle class. This class is divided into three distinct sub-classes, but where there is considerable merging between them. The first of these is the lower middle class which is made up of individuals with working class incomes who see themselves as middle class (Encel, 1970, pp. 120-121), or people who identify as working class but with the income and life style of the middle class (McGregor, 1997, pp. 145-147). As such the lower middle class could be seen as a transitional sub-class of people moving into, or out of, the middle class. Next is the central middle class, which is the largest of the three sub-classes. Most Australians see themselves as, or aspire to be in, this group. It is made up of people in mainly professional non-manual occupations on noticeably higher incomes than the working class (McGregor, 1997, pp. 145-146). The third sub-class is the upper middle class, which like the lower middle class, could be considered a transitional class, made up of individuals on a somewhat higher income than, but who identify with, the central middle class, or who have central middle class income, but identify with the upper class. The final class is the upper class, which is made up of people who inherited or created great wealth, and by very high salaried professionals such as the CEO's of large companies. Some members of this class and the upper and central middle classes, appear to be changing into an internationally based transnational capitalist class, possibly even a global upper class, which increasingly identifies with an international, rather than national agenda
Aesthttics: Australian visual arts are thought to have begun with the cave paintings, rock engravings and body painting of its Indigenous peoples
Ii: while cigarette smoking is the largest preventable cause of death and disease, responsible for 7.8 per cent of the total mortality and disease. clothing: There are no laws or rules on clothing, but you must wear certain clothing for work situations. Most workplaces have dress standards.Outside of the work situation, clothing is an individual choice; many people dress for comfort, for the social situation or the weather. Clubs, movie theatres and other places require patrons to be in neat, clean clothes and appropriate footwear.
Recreation: Early sports that were played included cricket, horse racing, Australian rules football and rugby. Sport evolved with Australian national identity through events like Phar Lap, the Bodyline series and the America's Cup races.
Recreation: Early sports that were played included cricket, horse racing, Australian rules football and rugby. Sport evolved with Australian national identity through events like Phar Lap, the Bodyline series and the America's Cup races.
Australia's abundant and diverse natural resources attract high levels of foreign investment and include extensive reserves of coal, iron ore, copper, gold, natural gas, uranium, and renewable energy sources. A series of major investments, such as the US$40 billion Gorgon Liquid Natural Gas project, will significantly expand the resources sector. Australia also has a large services sector and is a significant exporter of natural resources, energy, and food. Key tenets of Australia's trade policy include support for open trade and the successful culmination of the Doha Round of multilateral trade negotiations, particularly for agriculture and services. The Australian economy grew for 17 consecutive years before the global financial crisis. Subsequently, the former RUDD government introduced a fiscal stimulus package worth over US$50 billion to offset the effect of the slowing world economy, while the Reserve Bank of Australia cut interest rates to historic lows. These policies - and continued demand for commodities, especially from China - helped the Australian economy rebound after just one quarter of negative growth. The economy grew by 1.4% during 2009 - the best performance in the OECD - by 2.5% in 2010, 2.1% in 2011, and 3.3% in 2012. Unemployment, originally expected to reach 8-10%, peaked at 5.7% in late 2009 and fell to 5.2% in 2012. As a result of an improved economy, the budget deficit dropped to 0.8% of GDP in 2012 and the government could return to budget surpluses before 2015. Australia was one of the first advanced economies to raise interest rates, with seven rate hikes between October 2009 and November 2010. The GILLARD government is focused on raising Australia's economic productivity to ensure the sustainability of growth, and continues to manage the symbiotic, but sometimes tense, economic relationship with China. Australia is engaged in the Trans-Pacific Partnership talks and ongoing free trade agreement negotiations with China, Japan, and Korea.
Age:A population pyramid illustrates the age and sex structure of a country's population and may provide insights about political and social stability, as well as economic development. The population is distributed along the horizontal axis, with males shown on the left and females on the right. The male and female populations are broken down into 5-year age groups represented as horizontal bars along the vertical axis, with the youngest age groups at the bottom and the oldest at the top. The shape of the population pyramid gradually evolves over time based on fertility, mortality, and international migration trends.
Telephone system: general assessment: excellent domestic and international service domestic: domestic satellite system; significant use of radiotelephone in areas of low population density; rapid growth of mobile telephones international: country code - 61; landing point for the SEA-ME-WE-3 optical telecommunications submarine cable with links to Asia, the Middle East, and Europe; the Southern Cross fiber optic submarine cable provides links to New Zealand and the United States; satellite earth stations - 19 (10 Intelsat - 4 Indian Ocean and 6 Pacific Ocean, 2 Inmarsat - Indian and Pacific Ocean regions, 2 Globalstar, 5 other) (2007)Broadcast media: the Australian Broadcasting Corporation (ABC) runs multiple national and local radio networks and TV stations, as well as Australia Network, a TV service that broadcasts throughout the Asia-Pacific region and is the main public broadcaster; Special Broadcasting Service (SBS), a second large public broadcaster, operates radio and TV networks broadcasting in multiple languages; several large national commercial TV networks, a large number of local commercial TV stations, and hundreds of commercial radio stations are accessible; cable and satellite systems are available (2008)
They are well developed, financially stable.
HS : It is a dual-column schedule providing for both general and preferential duty rates applied to goods from developing countries.
Set of 15 tea bags (AUD )Powdered Mixture (100gm) (AUD)
Advertising - IdeaworksTarget market – 20years and above (mainly the major citiesPositioning – Flavorful and healthy choiceSales promotion-Free Samples with The Australian (newspaper)Tie up with Tv ShowsTV CommercialHoardingsStalls in malls and supermarketswebsite
Initially heavy advertisingSpecial offers (tea set for 2)discountsExpect lossesIncrease production and supplyKeep the same level of advertisingIntroduce new flavours and iced teasEnter different citiesReduce advertisingSupply to be the same as the demand pattern previously trackedAttempt to launch a different productIf all attempts fail – and profits don’t look up then gradually pull out of the market
