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Global Economies Each Region In The World Case Study

Global Economies Each region in the world has a different economic policy guided by various fundamentals and policies in place. Members of a region may dictate how the business in that particular region is conducted. Several factors therefore have to be considered by businesses and countries when they want to engage in business with one another. When doing business, a critical analysis of the host country in terms of the macroeconomic dynamics is of great importance to evaluate how they affect business and also taking into account the barriers, tariffs and regulations of trade that may affect the exportation of goods and services.

Certain regions have trade blocks that govern the rules of doing business; such regions enforce barriers to protect the economies of the member countries and to bar foreign investors and importers from providing goods and services to compete against their respective domestic...

Some countries have heavy duties charged against imports for finished products while raw materials which benefit their local industries are waivered to encourage local productions and for the development of the infant industries.
For purposes of this paper, the focus is on Australia which has one of the best economies in the world. Australia is ranked thirteenth best economy with its per capita income being ranked as one of the best in the world. Its human development index is also one of the best compared to other major economies of the world with its national performance in areas such as the economic freedom, education, protection rights, health and quality of life in general still ranked high. It has one of the best organized governments with clear structures and a working constitution that governs and protects the citizens. Geographically it is one of the largest countries with six…

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For purposes of this paper, the focus is on Australia which has one of the best economies in the world. Australia is ranked thirteenth best economy with its per capita income being ranked as one of the best in the world. Its human development index is also one of the best compared to other major economies of the world with its national performance in areas such as the economic freedom, education, protection rights, health and quality of life in general still ranked high. It has one of the best organized governments with clear structures and a working constitution that governs and protects the citizens. Geographically it is one of the largest countries with six states namely; South Australia, New South Wales, Queensland, Tasmania, Victoria and Western Australia (Ralph Kelly, 2012).

Australia generally is a wealthy nation with a population of about 22.2 million; its major cities are ranked as the most livable cities in the world. The Australian dollar (AUD) which is its main currency is stronger than the U.S. dollar (USD) and the exchange rate is 1 AUD equals to 1.03810 USD an indication of a good economy for foreign investment (XE, 2012). A stronger domestic currency is good for the importers but unproductive for the country's exports in the International markets as they become expensive and less competitive. The barometer predicts a decrease in the value against the USD by 2013 with a strong performance before the 2013 down drift. Different categories of business operators expect AUD/USD to go as high as $1.06 and weaken to $1.02 by 2013 onwards (Commonwealth Bank 2012).

Australia's annual economic growth for the last 15 years is 3.6%, the GDP growth rate estimates for 2011-2012 according to World Bank ranges from 3.2% to 3.8% which is a positive indicator. The International Monetary Fund report has also indicated that it is the world's best performing advanced economy, a status that is expected to prevail in the next two to three years. The year 2012 has had a growth rate of 3.1% therefore with all the fundamentals constant, a forecast of 3.3% increase is expected in 2013. The inflation (CPI) for Australia is 2.8% while the interest rate ranges between 3-6%.The interest rate forecast remains constant as sources reveal, the rate has been constant at 3.25% for the last three consecutive months being backed up by the domestic indicators. Inflation is also expected to remain
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