Pestle Analysis.docx

The country we chose for our PESTLE analysis is: Australia Political factors Australia is a federation of six States which, together with two self-governing Territories, have their own constitutions, parliaments, governments and laws. Usually called the Federal Government or the Commonwealth Government. However, State and Territory governments are also based on the same principle of parliamentary government. https://www.aph.gov.au/About_Parliament/House_of_Representatives/Powers_practice_and_pr ocedure/00_-_Infosheets/Infosheet_20_-_The_Australian_system_of_government Australia’s political stability, transparent regulatory system, and sound governance frameworks underpin its economic resilience. Ranked in the global top five on the Index of Economic Freedom, Australia’s effective governance provides multinationals with a safe, secure business environment. Australia offers:    

a business environment that is ranked 15th out of 190 economies for ease of doing business a robust regulatory system noted for its stable institutional frameworks and strong finance and banking regulations competitive rates for office space and the remuneration of professionals a quality of life that is rated the seventh highest in the world.

https://www.austrade.gov.au/international/invest/why-australia/business Property rights are robustly protected, and the strong rule of law mitigates corruption. Expropriation is highly unusual, and enforcement of contracts is reliable. The top income tax rate is 45 percent, and the flat corporate tax rate is 30 percent. Australia’s regulatory environment is one of the world’s most transparent and efficient, and is highly conducive to entrepreneurship. It takes only three procedures to launch a business. The labor market is well supported by the modern and flexible employment code. Government policies do not significantly interfere with foreign investment. Foreign firms compete on equal terms with domestic banks and other financial institutions in Australia’s highly developed and competitive financial system. https://www.heritage.org/index/country/australia Australia is a strategic actor in the Pacific-Asia region, which means it is an important partner to allow the introduction of Colombia in this region. The work of the Colombia Embassy in Canberra (Australia) contributes to identify and seize new opportunities in different political matters, commercial and investment collaboration. Some of the main topics that are part of the political agenda between these countries are education, environmental matters and sustainable mining. .

Considering the political factors and the diplomatic relationships between Colombia and Australia we can say, that there is not significant obstacles when it comes to immersion and investment in this country. http://australia.embajada.gov.co/colombia/asuntos_politicos Economic factors The economy of Australia is one of the largest mixed market economies in the world, with a GDP of AUD$1.62 trillion as of 2015. Australia's total wealth is AUD$6.4 trillion. In 2012, it was the 12th largest national economy by nominal GDP and the 17th-largest measured by PPP-adjusted GDP, about 1.7% of the world economy. Australia is the 19th-largest importer and 19th-largest exporter. The Australian economy is dominated by its service sector, comprising 68% of GDP. The mining sector represents 7% of GDP; including services to mining, the total value of the mining industry in 2009-10 was 8.4% of GDP. Economic growth is largely dependent on the mining sector and agricultural sector (12% of GDP) with the products to be exported mainly to the East Asian market. Despite the recent decline of the mining boom in the country, the Australian economy has remained resilient and stable. Australia has a low rate of unemployment with a 5.6%. it has an inflation rate of 2.0% and an FDI flow of $46.4 billion Australia tiene una economía bien diversificada, impulsada por la fortaleza de sus servicios y las industrias de recursos naturales y mineros. Australia se sitúa entre las cinco economías más libres según el Índice de Libertad Económica 2016 (publicado anualmente por la Fundación Heritage y el Wall Street Journal), detrás de Hong Kong, Singapur, Nueva Zelanda y Suiza, proporcionando un ambiente ideal para los negocios.

El Índice de Libertad Económica mide la capacidad de los individuos de tener bienestar económico como consecuencia del trabajo Social factors Australia doesn’t have one uniform national culture because the country is made up of so many different cultures thanks to waves of migration following European colonization in the late 18th century. The warm Australian climate is typically conducive to an outdoor lifestyle, meaning many Australians will spend large amounts of time either at the beach or in parks or participating in sport. Much social life in Australia is based around food and drink. There is a thriving cafe and restaurant culture throughout Australia, even in some small towns. Of course, there is always the barbecue tradition. Australians have a huge amount of choice when it comes to food, thanks to its many

cultural groups. There are restaurants, grocery stores and even supermarkets that specialise in food from regions all over the world. Many Australians will at some stage travel overseas and some travel regularly all over the world. Like our language, government and other major features, Australia's main religion, Christianity, was inherited from the English. Although migration and other changes to society have brought many other religions to the country, Australia is often described as 'secular' (meaning most Australians do not lead a strictly religious lifestyle). See image 3 Conclusion Overall, Australians have a lifestyle that is very similar to that of other developed countries like England and America. There is quite a lot of freedom for both women and men to choose where they live and whether they want to have families or remain single. Many people have opportunities to travel or study and social values allow women to enjoy sport and public life in much the same way that men do. As a wealthy, democratic country, most Australians enjoy fairly comfortable lives. Technological factors Australia is known for adopting new technologies at a faster rate than most other countries in the world; for example, it entered the new millennium with one of the highest rates of internet access in the world. Scientists and researchers from Australia have been responsible for many major breakthroughs and technological developments around the world. In fact, Australia boasts eights Nobel Prize recipients—not bad for a country with a population of about 19 million. The growth of technology in Australia has had several important results; it has increased opportunities for innovation and design; helped various industries make improvements in their already existing establishments, and helped them to improve the quality of their goods. The technology growth has also helped to improve Australia’s economy, as it is now one of the leading countries in the world for importing and exporting goods.

Legal factors Australia is a representative parliamentary democracy with three levels of government: federal, state and territory, and local. This multilayer governance system affects a number of sectors and industries that foreign investors may seek to invest in, including natural resources, infrastructure, commercial real estate, tourism and manufacturing. This legislation exists to protect consumers, the environment and the community, as well as to promote fair trading and competition. There are very strong legislations regarding: competition laws (fair trading), consumer laws (contract terms, consumers rights, product safety…), product liability regulation, environmental legislation, privacy laws (how businesses access and store personal information). There are free trade agreements and import regulations.

Australia has very strong regulations that protect intellectual property. These regulations are designed to encourage innovation and protect businesses that develop intellectual property. Australia has tax agreements with more than 40 countries. These tax agreements, aim to prevent double taxation and promote cooperation between international tax authorities. Environmental factors Australia is the sixth largest country in the world. Its ocean territory is the world's third largest, spanning three oceans and covering around 12 million square kilometers. Australia is one of the most urbanized and coast-dwelling populations in the world. More than 80 per cent of Australians live within 100 kilometers of the coast. There are a large number of legislative instruments and regulatory bodies that govern environmental regulation in Australia. Australia has a federal legal system with environmental matters primarily regulated at a state and territory level. The regime varies between each state and territory. We need to be aware of the impact that our business might have on the environment, knowing this, we need to ask for the appropriate license and permit to act. Our concerns in the environmental factor would be: 

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To manage the carbon footprint in aviation. The Australian civil aviation contributed to a total of 22 million tons of carbon dioxide emissions. Australia is actively working through ICAO (International Civil Aviation Organization) to develop goals and practical measures for reducing aviation emissions. Also works to improve fuel efficiency. Aircraft noise. Even though it is inevitable by its product, there are legislations to manage its impact and also airport curfews to follow. Safeguarding airports and the communities around them. For this

Incurring in the offense of any of this regulations can result on penalties either criminal or civil financial for the company.