globalEDGE Blog - By Tag: australia

Over the past few months- and August of 2024, in particular- India has seen strikes and protest erupt across the country. These strikes, involving port workers, doctors, and farmers, have had significant adverse impact on both the national and global economies.

Australia’s economy is one of the largest in the world, with solid industries in mining, agriculture, and services. Major cities, such as Sydney, Melbourne, Brisbane, Perth, and Adelaide, are centers of commerce, culture, and innovation. The country's relationship with Laos, in particular, has allowed it to flourish across multiple international business sectors.

During the mid-1970s, wide-leg pants gained popularity among both men and women in Europe and North America. 50 years later, they're coming back in style.

Almond, coconut, oat, soy, pea, and hemp milk… in an age particularly reliant on Starbucks morning coffee and cycling health trends, the alternative dairy industry is taking the world by storm. 

In March 2021, China put a large tariff on any imported wine from Australia, it's the largest supplier. This blog covers the economic impact on the wine industry in Australia and China, the background to the current situation, and what lies ahead for the wine industry.

On January 15th, 2022, the country of Tonga was shaken up by the Hunga Tonga, an underwater volcano erupted and disrupted the entire country. A volcano, with a force equal to 500 Hiroshima nuclear bombs, has filled the sky with a sulfuric cloud compromising the natural resources in Tonga. With a population of 100,000 citizens, a small oceanic country is facing the dreadful repercussion of this natural disaster.

The COVID-19 virus has been ravaging countries as many have recently failed to reach the World Health Organization’s goals for vaccination percentages, whether for lack of access, lack of easy spread of information, or the spread of misinformation surrounding vaccinations. There have been spikes regarding the Delta variant in the United States, Mexico, Russia, Australia, and some parts of Europe and Africa. However, throughout all of this chaos, there is new hope surrounding a new antiviral pill that could be a strong contender for treating COVID-19 without the use of injections.

The media industry has changed drastically with the development of the internet. While television and print are still used, an ever-growing amount of people are getting their information from online news websites and social media platforms. With these large shifts, the structure in the way that these companies monetize their content is bound to change as well. Given the strong connection between social media platforms and news content, there are going to be disputes over how the companies in these industries interact. Recently, Australia enacted legislation to address the way that news content is shared online.

The issue of data collection, monopolies, and the power that private companies have versus what the government has access to has been a constant power struggle over the past 20 years as technology has become more and more accessible. One company, in particular, has been raising fears throughout many different countries: Google. Google currently has a 90% share of the market, raising concerns about it being a monopoly. In the United States, the Department of Justice and 11 states put forward an antitrust lawsuit against Google on October 20, 2020, claiming that Google is illegally protecting its monopoly. On the other hand, Brazil has been dealing with the ramifications of its antitrust lawsuit with Google since 2018. This is an update to antitrust cases that have been going up against Google throughout these past two years. The lawsuits in Australia and Spain were covered in an earlier blog. 

5G is the next generation of wireless networks expected to change our culture fundamentally. Due to its almost zero request time, 5G will be able to download a two-hour movie onto your phone in less than 10 seconds.

While the coronavirus pandemic rages on, new battles are rearing their faces. As people search for more and more news about current events, they flock to online media sources. Traditional journalism is not happy. The most recent battleground for these face-offs has been Australia.

Although the news of the Australian bushfires has only become popularized in the last two months, firefighters have been battling the fires since September of 2019. Since the start of the fires, more than 15.6 million acres of land have burned, and the fires are not expected to stop for at least another month.

In an increasingly connected world, people and businesses are more likely to have contact with other countries.  It is important to be educated on the status of industries around the world, and what makes up the economies of the countries that may be encountered through trade and business expansion.  Today we’re going to look at some of the strongest industries in three areas of the world: Asia, Europe, and Australia.

Tourism is vital for the success of many economies around the world. There are several benefits of tourism on host destinations.  Tourism boosts the revenue of the economy, creates thousands of jobs, develops the infrastructures of a country, and plants a sense of cultural exchange between foreigners and citizens.

As climate change increasingly becomes a bigger issue, investors and companies are looking for ways to minimize their environmental impact with regards to greenhouse-gas emissions. Investors such as Aviva Investors and Aegon Asset Management are encouraging restaurants and food companies to reduce their carbon footprint and redefine their supply chain to be more environmentally friendly. Especially in the United States, this is a controversial period for this issue. Analysts are expecting climate change to be a key issue in the United States 2020 presidential election. It will be a tough negotiating point between all parties involved.

Recently, Hurricanes Irma and Harvey slammed into the coasts of the Caribbean and southern parts of the United States. These destructive tropical storms caused billions of dollars worth of damage combined and displaced millions of families. JP Morgan recently estimated that the insurance industry could lose $10 to 20 billion from Hurricane Harvey alone.    

Australia's central bank recently cut interest rates from 1.75% to 1.5%, a direct consequence of the country's faltering job market and record-low inflation. The Reserve Bank of Australia hopes to boost the labor market as well as induce economic growth via this interest rate cut. After a decade-long mining boom, the Australian economy gradually shifted towards less commodity-dependant growth, helping the nation avoid a recession. Unfortunately, there are many indicators that Australia's gross domestic product (GDP) is losing momentum. Economic growth of 1.1% in the first quarter of 2016 has been largely attributed to the dominance of net exports. Analysts suspect such exports to contribute minutely to overall economic growth. Data from the Australian Bureau of Statistics reported the country’s trade deficit rose to $3.2 billion ($2.4 billion) in June, while exports declined 1%, and imports increased 2%.

The Aussie real-estate market is an increasingly mercurial frontier for investors and home-owners alike. Housing markets are no stranger to high rates of default and bad debt, but Australia’s uniquely volatile real estate business has been steadily oscillating toward bubble status since 2001. The whole world was crippled when America’s housing bubble, launched to dangerous heights by massive collateralized debt obligations and junk bonds, eventually exploded in a manner that shook the global economy. Australian default rates are nothing short of shocking and have narrowly avoided causing American 2008-esque crashes in the past several years. The uncertainty from this part of Australia’s economy adds fuel to its fire, but other times it serves to strengthen its own currency and outperform other sectors of the global economy. But everything has a cost, and though Australia might not be facing the immediate risk of a bubble, a slow and painful demise is usually in store for those who mistake healthy credit margins for insurmountable housing debt.

A month ago, I wrote about how the Volkswagen Emissions Crisis could affect the German Economy. Recently in Australia, Bannister Law filed two class action lawsuits in federal court on behalf of Australian citizens who purchased the defective Volkswagen vehicles. More than 100,000 cars in Australia had been sold with software that manipulated pollution controls.

Information Communications Technology (ICT) spending in Australia is forecasted to grow to $49,452.6 million by 2016, according to new research from International Data Corporation. While the market is growing exponentially, Australia is currently facing a shortage of skilled workers in its ICT sector. As I dug deeper into the labor force issue, I found that the future outlook for the Australian ICT industry does not seem as positive as the growth forecast indicates.

With the March 31st application deadline quickly approaching for countries interested in joining the Asian Infrastructure Investment Bank (AIIB), Australia is rethinking its prior decision not to apply. The investment bank, led by China, recently added the United Kingdom, France, Italy, and Germany as members, even though the United States has issued warnings about the bank. The decision by these four major European countries to join the bank against United States wishes has led Australia to reconsider its position on AIIB, and look to possibly invest up to $3 billion in the AIIB.

After eight years of negotiation, China and Australia finally drew a free trade deal on last Monday. This agreement signals a transformational change in the economic relations between China and Australia because trade tariffs in dairy, beef, and horticulture products will be completely eliminated within the next couple years. Without a doubt, it will greatly facilitate the trade between these two countries. On the other hand, Canada, one of Australia's main competitors, is now worried about its exports to China.

Australia foreign policy debate has begun to take focus on two of the largest economies: The United States, a century long ally, and China a major trading partner. As China’s economy continues to grow and its need for natural resources increases, Australia will need to find a way to manage and balance its relationship between the two rival countries.

Harnessing the energy in shale has created a boom in the markets with enough momentum to alter the global energy industry altogether.  The controversial drilling technique involves fracturing shale formations using water, sand, and other (undisclosed) chemicals to access natural gas.  Entrepreneurial potential coupled with technological innovations from both the public- and private-sectors attract investment to either resource rich regions or competitive hedging projects for returns.

Since the governmental reforms and the economic reforms that Australia underwent in order to make their country more relevant in global trade, China and Australia have maintained strong trade relations. Since 2008, Australia has more than doubled its trade with China. This is due to less strict trade regulations, lower taxes on exports, and a less conservative economy. Once these reforms were made, Australia transformed from a independent, isolated and small economy to a more internationally competitive economy with a more export oriented background.

For a country that has a deep and prosperous mining heritage, Australia was shocked by the latest report from its Resources Minister Martin Ferguson: the resource boom, one of the largest engines in Australia's economy, was over. The statement came following BHP Billiton's announcement that there has been a 35% dip in profits and postponed plans to expand the nation's Olympic Dam mine. There have also been considerable concerns in the country that the weak global economy might also decrease the demand for coal, metal ores, and other commodities. For foreign investors and Australian economists alike, a slowdown in the prosperous mining sector will surely leave a noticeable dent in Australia's economic growth.

What happens when you mix a close proximity to fast growing nations and an abundant supply of natural resources? An impressive economic boom, but a fear of being highly dependent on a few key nations. Australia is currently enjoying not only a very lucrative demand for its natural resources from China and India, but is also becoming a tourism hotspot for the people of China.

The auto manufacturing industry in Australia has seen brighter days. The once supreme car industry used to flourish with seven major auto manufacturers. There are now only three (Ford, Toyota, and General Motors Holden), and their future in the nation is uncertain. The industry is propped up by government support and in need of a revival. Is the industry holding onto false hopes of prosperity? Or is it going to show its typical resilience and bounce back from another punishing year?

Starting July 1, 2012, the biggest polluters in Australia will have to pay a pollution tax. The tax, AD 23 (USD 25) per ton will be charged to companies that produce at least 25,000 tons of carbon dioxide per year.

Widespread use of the Internet has led to a decline in the prevalence of traditional brick-and-mortar businesses, and this disparity will continue to shift as more people worldwide are provided with Internet access. Buying online is simply more convenient, and most of the time more affordable than traveling to a physical location and purchasing a good or service. Even more convenient, however, is the ability to conduct business and make purchases while on-the-go. With an increasing number of smartphones sprouting up all over the world, making purchases has never been easier. Mobile commerce is a trend we can expect to see entire business strategies built around. 

Generally, when something is put to a vote, the most popular vote wins. This is not the case for the Kraft Foods Australia product, Cheesybite. If you don’t know what Cheesybite is, it is a jar of caramel-brown, salty, gooey yeast paste (also known as Vegemite, an immensely popular Austrailian spread), that is mixed with cream cheese. Sounds appetizing, huh? Well to many Australians, it is. In a recent New York Times article, Bill Granger, a well known Sydney chef, said that Vegemite is “One of the only foods that is unique to Australia, and people see it as being quintessentially Australian.”

Now-a-days, Starbucks isn’t the only place you can go to grab a cup of joe. McDonald’s McCafés can now be found all over the globe offering a multitude of delicious, caffeinated beverages. This coffee chain was created in Melbourne, Australia in 1993. Ten years later, in 2003, it grew to be the largest coffee shop brand not only in Australia, but in New Zealand too!

The rising stock of Twitter and Facebook as valuable business assets is a surprise to nobody, but just how big of a role they play may be overlooked. Australia, which is currently going through a tourism slump due to the global economic downturn and the swine flu epidemic, is getting a bit of help from social networking giants Twitter and Facebook.

The managing director of Tourism Australia, Geoff Buckley, asserts that Twitter and Facebook are helping to pull the Australian tourism industry through the recession. “Tourism Australia’s activities on Twitter and Facebook are connecting people around the world who have visited Australia and getting them to share their experiences with a community of travelers who are equally passionate about our country.”