The Challenges Businesses Face in Australia and in the World - Case Study Example

Business versus politics Name institution “Business in Australia would be better served if more politicians had business experience rather from coming from legal or academic backgrounds or just being professional politicians.” Introduction In every corner of the world, business forms the core system that supports the economy of the nation (Chebankova, 2010, p.25). To this end, it has become the responsibility of all and sundry is in ensuring that the business environment is well protected. A number of challenges face the world of business, especially in Australia. This paper aims at examining the challenges that businesses face in the world, using Australia as a sample case study. It is noted that politicians play a huge role in the facilitation of the growth or provision of the environment conducive for the conduct of business. politicians are embarked with the task of designing policies that could either make or break the world of business (Lux et al 2011, p.224). it is important to have politicians who are business oriented and who believe that the strength of the nation is catered for by having economic strength in the first place. This paper shall examine and establish whether it is more served to have politicians have business experience rather than coming from a political experience and legal backgrounds. Business situation in Australia Australia has managed to effectively place itself as a big exporter of agricultural produce and energy. The agricultural products comprise of wheat and wool from many sheep in the region. Energy is in form of coal and natural gas in its liquefied form. The USA, Japan as well as China constitute one of the largest export markets of the products from this country. The Australian people are industrious in nature and as such, the business acumen has been captured and nurtured to enable the nation progress into becoming a business icon in the world. Despite these achievements which have come about in a relatively short time period, the potential for Australia is still so massive that if well exploited, the country could be on its way to achieving the same level of economic strength, goodwill and power that are synonymous to a powerful economic set –up. The question then lingers in what could be the actual reasons that hinder this great potentially economic strong country from blossoming into the greatness that awaits it. The answer to this question is explored through the discussion in the ensuing paragraphs. Politics versus business in Australia In Australia, the business dynamics intertwine with the selfish and sometimes misguided interests of politicians in this country. Just like any other nation of the world, politics plays a great role in the running and setting up of policies, standards and even precedents in every nation (Jackson, 2006, p. 2; Tang, 2009, p.1) . The political strength of nations is a phenomena that determines where the countries will be heading in the form of economic power. In other words, the politicians design and pass policies that are meant to either uplift or clip the economy of the nation. However, in Australia, being a constitutional democracy that recognizes and embraces the will of economic strength, the politicians try and make policies that are in line with this. For instance, one of the most important economic factor in every nation is the capability of the nation to attract and maintain foreign domestic investors (March, 1962, p.665). In Australia, the legislators know this quite well. Through the formulation of policies that invoke the desire to invest in the nation, the politicians ensure that the foreign domestic investments are always present in their country (Niehaves et al 2012, p. 350). This is achieved through a number of ways as shall be described in the ensuing sentences. One of the major ways is through lobbying for the establishment of more and more investment opportunities in the nation. The country chooses ambassadors strategically and in a manner which gives them the goodwill to market the nation to other investors out there. In this format, the politicians ensure that the investors flock to the country and bring the necessary and most required foreign exchange. Another way of doing this in this country is by ensuring that the legislators pass policies that are friendly to the world of business (Sonnenberg, 1989, p. 56). for instance, they have lessened and made easy the process of acquisition as well as conduct of business in the country. The removal of bureaucracy has paved the way for the establishment of more businesses in the region for both the local as well as other foreign investors. This has shown that there is a cohesion between the politicians and the business world. However, it should also be noted that sometimes business matters and business dynamics in the region are not handled in the efficient of manner because of the politicians lack of the business acumen and experience. Most of the politicians playing in the political setup of Australia do not have a business background. This forms one of the biggest challenges that businesses in the region face. The business people in the region, both local and foreign need to operate in an environment where they feel appreciated and that their needs are well taken care of. This follows that the government of the country should ensure that it sensitizes its own people to allow for creation of such an environment where business could be conducted in a free and fair manner. Despite the notion above that most politicians in the country have no business background or even experience, with the majority stemming from the legal platforms or acting a professional politicians, not all lack this important acumen. It is worth noting here that there are some politicians who hold offices with some notable political clout in the country. These are people who have a background that is different from the common norm, that is legal and political. Albeit few, these politicians appear to have the economic matters of the country at heart. In the process of trying to protect their interests, they also influence the formulation of policies that are far reaching. This in turn affects other business men in the area. The concept of having a business experience Having an experience in the world of business is very important. It is even more so important to the politicians who are in positions in which they could effect changes through the advocacy and application of certain set rules to ensure that the businesses thrive (Bender, 1986, p.125. Politicians who have a background in business place a certain amount of value to the business world. For instance, it would be easier for a politician with a business background to support the abolishment of extraneous tariffs that would open the way for the creation of more opportunities in the business world. The policies that these politicians formulate in matters concerning business are extremely vital for the growth of deterioration of these businesses. People who have had a business experience have a definite advantage over those who have not (Brodsgaard, 2012, p. 625). These people know exactly what challenges that are present in the world of business. for this reason, they also find a niche in trying to establish how to get rid of these challenges and pave way for the development of business in the nation. The understanding of the intricate details of how the businesses in a nation like Australia contributes towards the development and the growth of the economy is important so as to enable these politicians make laws and define policies that are favorable to this end. Conclusion As much as having a legal and political background as politicians in the Australian country is of great importance, it is also important, as has been established from the discourse above to note that the politicians with a business background have what it takes to drive the economy of the country to even greater heights as compared to those who do not have this business experience. As shown, this stems from the fact that the politicians who have a sense and maybe a practical experience on business understand far too well the dynamics as well as the challenges that businesses suffer in the country. This understanding creates an avenue for these politicians to come up with policies that would enable them give a boost to the businesses of the day and subsequently lead to an uplift of the economy of the nation. As has been observed, there is no doubt that a country’s strength is measurable by the strength of its economy. and businesses fuel this strength. The politicians are the cogs who determine which direction the economy heads by passing of policies that either favor the development of business or decline of the same. As such, it is important to ensure that the politicians who are in the positions of power have an intricate understanding of the same. This is best brought forth through the selection and election of politicians who have heard an experience of running businesses so that they could use the same for the running and advancement of the economy. References Brodsgaard, K.E 2012. ‘Politics and Business Group Formation in China: The Party in Control?. The China Quarterly, Vol. 211, pp 624-648. doi:10.1017/S0305741012000811. Bender, T., 1986. ‘Wholes and Parts: The Need for Synthesis in American History’, Journal of American History, Vol. 73, No. 3, pp.120–151. Chebankova, E., 2010 ‘Business and Politics in the Russian Regions’ Journal of Communist Studies and Transition Politics, Vol.26, No.1, pp. 25-53. Jackson, C., 2006. ‘Business and Politics in Hong Kong’, Hong Kong online journal, retrieved 29th April 2013 from http://www.hkjournal.org/archive/2006_fall/jackson.htm Lux et al 2011 ‘Mixing Business With Politics: A Meta-Analysis of the Antecedents and Outcomes of Corporate Political Activity’ Journal of Management,vol. 37 no. 1 , pp. 223-247. March, J.G. 1962. ‘The business firm as a political coalition’, the journal of politics, Vol.24, No. 4, pp. 662-678. Niehaves et al 2012). ‘Business process governance: a comparative study of Germany and Japan’, Business Process Management Journal, Vol. 18, No. 2, pp.347 – 371. Sonnenberg, F1989. ‘Playing Politics—Vote No’, Journal of Business Strategy, Vol. 10, No. 3, pp.55 – 58. Tang, J., 2009. ‘Radical politics in Hong kong- can business make a difference?’ Hong Kong online journal, retrieved 29th April 2013 from http://www.hkjournal.org/archive/2009_fall/5.htm Read More