Political Environment
Cultural Environment
Introduction
Australia officially the Commonwealth of Australia, is a country in the Southern
Hemisphere comprising the mainland of the Australian continent (the world's smallest)
the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans.
For at least 40,000 years before European settlement in the late 18th century, the
Australian mainland and Tasmania were inhabited by indigenous Australians, who spoke
around 250 language groups. After sporadic visits by fishermen from the immediate
north, and discovery by Dutch explorers in 1606, the eastern half of Australia was
claimed by the British in 1770 and initially settled through penal transportation to the
colony of New South Wales, founded on 26 January 1788. The population grew steadily
in the following years; the continent was explored, and another five largely self-
governing Crown Colonies were established during the 19th century.
On 1 January 1901, the six colonies became a federation and the Commonwealth of
Australia was formed. Since Federation, Australia has maintained a stable liberal
democratic political system and remains a Commonwealth realm.
A prosperous developed country with a multicultural society, Australia ranks highly in
many international comparisons of national performance such as human development,
quality of life, health care, life expectancy, public education, economic freedom and the
protection of civil liberties and political rights. Australia is a member of the United
Nations, G20, Commonwealth of Nations, ANZUS, OECD, APEC, and the World Trade
Organization
Marketing Envirnment
Investment Climate: Foreign direct investment is strongly encouraged in Australia.
The Australian government maintains offices around the world providing services to
potential investors and promoting the country as "an excellent base for international
business". According to the 'Invest Australia' North American offices, Australia is a
safe, secure and profitable location for international investment with a low risk
business climate, a creative and innovative environment, multilingual capabilities,
flexible business support, cost competitiveness, a modern infrastructure, and
government support to industry.
Australian Trade: Australia is a member of several trade liberalization initiatives at
the multilateral, regional and bilateral levels. Multilaterally, Australia is an active
member of the World Trade Organization (WTO) and of the Organization for
Economic Co-operation and Development (OECD). Regionally it participates in the
following associations: the Asia-Pacific Economic Cooperation (APEC); the ASEAN
Free Trade Area - Closer Economic Relations Closer Economic Partnership (AFTA-CER
CEP); and, the Indian Ocean Rim Association for Regional Cooperation (IOR-ARC).
At the bilateral level, Australia is party to the following agreements:
• Australia-New Zealand Closer Economic Relations Trade Agreement (CER -
1983)
• Singapore-Australia Free Trade Agreement (SAFTA - July 2003)
• Australia-Japan Trade and Economic Framework (July 2003 - cooperation and
reduction of trade barriers in certain sectors; considered by some to be the
initial steps towards the establishment of a FTA)
• Australia-Thailand Closer Economic Relations Free Trade Agreement (CER-FTA
- October 2003)
• Australia-United States Free Trade Agreement (AUSFTA - enforced in January
2005)
