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Possibilities and Factors to Conduct Business in Australia

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The present paper has identified that Australia currently has one of the strongest economies in the world and offers many advantages for investors, exporters and global companies looking for a base in the Asia Pacific region. Australia possesses a remarkable diversity of life forms which is unique compared to rest of the world, its diverse culture and lifestyle reflect its liberal democratic traditions and migrants. According to Aswathappa the environment of international business is regarded as the sum total of all the external forces working upon the firm as it goes about its affairs in foreign and domestic markets. Understanding the Australian business culture can relieve tension in a business transaction and make it beneficial and enjoyable for both business parties. Australia enjoys political stability and has a federal system of government with powers generally distributed between the Federal Government and State Governments all of which are governed through elected Parliaments. Australia’s foreign investment policy encourages FDIs which are consistent with community interests and they are required to register and get approval from FIRB in certain categories like a proposal to establish the new business, investment in sensitive sectors, acquisition of assets and shares and real estate. According to AMB Country Risk Report Australia in a Country Risk Tier (CRT) – 1 country with very low levels of economic, political and financial system risk and experienced 18 years of uninterrupted economic expansion. With such rich natural resources and diversity in socioeconomic and political background, Australia is the best place to start a new business as stated by the World Bank report and also due to low-risk factors. The globalization process has made it compulsory for companies to expand their business operations beyond its national boundaries and enter the international market and to operate in a global market. As the global economy continues to develop, managers need to learn the process of working and operating the business in the international arena in the same way as they do in their own backyard.