Australia
Australia country profile
Basic facts
| Official name | Commonwealth of Australia |
|---|---|
| Country code | AU |
| Government type | Democratic Parliamentary system recognizing British monarch as Sovereign |
| National day | 26 January |
| Area | 7,686,850 km² |
| Population: | 21,515,754 |
| Neighbouring states | Papua New Guinea, New Zealand, East Timor and Indonesia |
| Language | English |
| Religions | Catholic 25.8 %, Anglican 18.7 %, Uniting Church 5.7 %, Presbyterian and Reformed 3 % according to 2006 Census |
| Currency | Australian dollar (AUD) |
| Exchange rate | 1.09 AUD = 1 USD in 2010 |
| Main industrial products | Transport equipment, Processed food, Chemicals, Steel |
| Most important export goods | Coal, Iron ore, Gold, Crude Petroleum, Bovine Meat |
| Most important import goods | Motor Vehicles, Crude Petroleum, Computers, Medicaments, Telecommunications equipment |
| Most important export countries | Japan, China, South Korea, USA, New Zealand. |
| Most important import countries | China, USA, Japan, Singapore, Germany. |
| Main natural resources | Iron, Gold, Coal, Natural Gas |
| Tax rates | Income Tax 0%-45%, Corporate Tax 30%, Goods and Services Tax 10% |
| Level of corruption | In Transparency International's comparison Australia ranks the 8th among 180 countries (the bigger the figure, the more corruption). |
| Competitiveness | In World Economic Forum's Global Competitiveness Index 2011-12, Australia is ranked 20th among 142 countries. (smaller the figure, better the competitiveness) |
Source: Finnish Ministry of Foreign Affairs
Australia economy
Main Economic indicators in 2007-2012
|
| 2007 | 2008 | 2009 | 2010 | 2011f | 2012f |
|---|---|---|---|---|---|---|
| GDP at current prices (billion USD) | 951.6 | 1,040.7 | 973.7 | 1,232.8 | 1,493.5 | 1,496.8 |
| GDP per capita at current prices (USD) | 45,160 | 48,560 | 44,510 | 55,520 | 66,280 | 65,460 |
| GDP (% change) | 4.6 | 2.6 | 1.3 | 2.7 | 1.9 | 3.4 |
| Gross Fixed Investment (% change) | 10.1 | 7.9 | -3.2 | 5.4 | 6.5 | 6.9 |
| Private consumption (% change) | 5.4 | 1.9 | 1.0 | 2.8 | 1.7 | 2.6 |
| Exports (% change) | 2.5 | 4.7 | 2.8 | 5.3 | 0.5 | 6.7 |
| Imports (% change) | 12.2 | 11.5 | -9.0 | 13.3 | 7.8 | 7.3 |
| Consumer Price Index | 2.3 | 4.4 | 1.8 | 2.8 | 3.3 | 2.8 |
| Unemployment rate (%) | 4.4 | 4.3 | 5.6 | 5.2 | 5.0 | 4.9 |
| Exchange rate (yearly average) AUD / 1 USD | 1.20 | 1.19 | 1.28 | 1.09 | 0.96 | 1.01 |
| Exchange rate (yearly average) AUD / 1 EUR | 1.63 | 1.74 | 1.77 | 1.44 | 1.35 | 1.37 |
Source: Economist Intelligence Unit
Trade between Australia and Finland
Trade between Australia and Finland in 2006–2010
| Million EUR | 2006 | 2007 | 2008 | 2009 | 2010 |
|---|---|---|---|---|---|
| Finnish Exports | 433.4 | 481.0 | 576.7 | 322.1 | 425.6 |
| Finnish Imports | 714.4 | 952.9 | 630.2 | 216.5 | 302.5 |
| Trade Balance | -281.0 | -471.9 | -53.5 | 105.6 | 123.1 |
Source: Finnish Customs
Top ten Finnish export products (SITC 2 level) in 2010
| Product | Value of Exports (million EUR) |
|---|---|
| Paper, paperboard and articles thereof | 129.6 |
| Machinery for specialized industries | 91.3 |
| General industrial machinery n.e.s. | 42.3 |
| Electric machinery, n.e.s. and parts | 31.9 |
| Instruments and apparatus n.e.s. | 29.6 |
| Iron and steel | 21.2 |
| Manufactures of metals, n.e.s. | 10.4 |
| Road vehicles | 9.3 |
| Metal working machinery | 8.6 |
| Power generating machinery and equipment | 7.8 |
| Total exports to Australia | 425.6 |
Source: Finnish Customs
Top ten Finnish import products (SITC 2 level) in 2010
| Product | Value of Imports (million EUR) |
|---|---|
| Metalliferous ores and metal scrap | 163.0 |
| Coal, coke and briquettes | 68.6 |
| Non-ferrous metals | 18.6 |
| Beverages | 17.7 |
| Medicinal and pharmaceutical products | 14.6 |
| Machinery for specialized industries | 4.8 |
| Instruments and apparatus n.e.s. | 3.0 |
| Other transport equipment | 1.7 |
| General industrial machinery n.e.s. | 1.6 |
| Electric machinery, n.e.s. and parts | 1.4 |
| Total importsfrom Australia | 302.5 |
Source: Finnish Customs
Australia strengths and weaknesses
Strengths
- Australia is one of the most politically stable countries in the world.
- Regulation of Australia's financial markets is viewed globally as a model of prudential financial regulation. The well-established legal and institutional structures make Australia a safe and supportive environment for commerce. In contrast to banks in other countries, Australia's largest banks maintained a strong credit rating through the economic crisis.
- Australia's abundant and diverse natural resources, including coal, iron ore, copper, gold, natural gas, uranium and renewable energy sources, attract high levels of foreign investment.
- Australian businesses are among the most advanced and sophisticated users of information and communications technologies in the world. They have a tradition of rapid technology uptake.
- Australia offers a well-educated and highly skilled workforce. As an English speaking country, it has the advantage of providing a suitable regional base. The country enjoys proximity to Asian markets and has strong trade links.
Weaknesses
- The manufacturing sector has been shrinking rapidly; this makes the country more reliant on few key resource exports.
- Australia's large current account deficit increases vulnerability to capital flows and currency volatilities.
- The inflow of large number of refugees and economic migrants is a key source of domestic tension, which is unlikely to disappear over the medium term.
- The Australian consumer is suffering from high inflation and interest rates.
- Corporate taxes for foreign investors in Australia are higher than in other countries. Despite its openness, Australia has been unable to attract inward investment to the same extent as its Asian peers in recent years.
Australia business culture
Despite being geographically remotely located from world markets and having a small domestic market, Australia is economically successful and has a higher standard of living than any G7 country excluding the US.
Business Structure
Corporate structures in Australia are matrix oriented, without many layers of management. A hierarchical approach tends to sit uneasily in egalitarian Australia. Australians prefer people who are modest, humble, self-deprecating and with a sense of humour. They do not draw attention to academic or other achievements and tend to distrust people who do so. It is important for Australians to get along with everyone due to the relatively small population. The country has liberalised its immigration policy and opened borders to Southeast Asia over the last thirty years. This has caused a real shift in the country's self-perception; Australians have begun to re-define themselves as a multi-cultural and multi-faith society rather than the old homogenous community. Australians are aware that they need to trade actively in the international market as its domestic market is small. Therefore, they are open to ideas from overseas. In the business context, Australians encourage lively discussion or debate over new ideas. Acquiring business is based on merit as kick-backs are not the norm in the country.
Business meetings
Appointments are considered essential and are relatively easy to schedule in Australian business culture. Good eye contact is a must in meetings. Punctuality is another vital business practice. Australians have a matter-of-fact style of functioning. They do not need to build long-standing personal relationships before doing business. They are quite direct and expect the same. It is wise to avoid hype or exaggerated claims during presentations. Simple, straightforward and to the point presentations with emphasis on both the positive and negative outcomes are appreciated. Aggressive sales techniques while negotiating are not likely to bode well with Australians as they dislike being pressured. In Australian businesses, decision-making is concentrated at the top of the company. However, decisions are often made after consultation with subordinates as even junior employees enjoy a considerable amount of power and authority within the company. This can make decision making slow and protracted. However, it is not advisable to rush the process.
Communication
Australians are not very formal; greetings are therefore casual and use of first names is preferred. A handshake and a smile suffice on first meeting. It is practical to stick to Standard English than use Australian business dressing which is conservative and the same is expected from someone new.
Generally, Australians are literal and to the point in their communication, often expressing what might be perceived as strong and confrontational opinions. They would let the other person know of their disagreement, if any. While immigration and aboriginal issues are topics to avoid during conversation, sport is a good topic to break the ice. Privacy is an important element of Australian life. Hence, aspects pertaining to personal life are not encouraged during business meetings. Besides interacting with counterparts at a professional level, one can use time outside the sphere of work as well to build rapport.
Socialising & gifts
It is not customary to exchange business gifts during initial meetings. If invited to someone's home for dinner, it is polite to bring a box of chocolates or flowers or books for the hostess. Bringing a good quality bottle of wine is appreciated. The thoughtful choice is considered more important than the gift itself. Australians generally open gifts when received.
Sources: UKTI, Kwintessential, Communicaid, ExecutivePlanet, GlobalNegotiator, WorldTravelGuide, WorldBusinessCulture