Australia, being one of the leading trade partners with China, hold a strong relationship with the country benefiting our businesses and economy: they are essential for our success in the leading years to come. Today I will be talking to you about the market capitalist economy and its purpose, the ChAFTA and how it benefits both us and China, the increase or decline of exported goods, and the success of Carman’s Fine Foods and how they maintain a competitive advantage in China’s economy.
A market capitalist economy is an economy that doesn’t evolve the government, rather businesses operate in a market, producing goods and services for the consumers’ needs. Australia manages the economic problem of scarcity by allowing businesses to exchange …show more content…
Prices are determined through the willingness of the consumer. Producers identify the most cost effective methods of production, later sold to consumers with the money to pay for the goods and services. Currently Australia is the number one global export of iron ore and concentrates (by value) (Trade, 2017), exporting 51,708,295 (A$m) of in years 2016 – 17 to China alone, with a percentage growth of 33.4% over the past few years (Trade, 2017). Iron ore is an essential part of the world’s current infrastructure, being a key component in the production of steel: steel being used to make buildings, bridges and all kinds of machines. With that Australia is currently the 6th largest global exporter of gold (Trade, 2017) with export numbers reaching 11,160,274 (A$m) in years 2016-17, with percentage growth reaching heights of 99% over previous years. Gold is used for the production of jewellery, currently a huge market in China. In addition to iron ore and gold, Australia is …show more content…
At the age of 18 Carolyn Creswell bought a small muesli business for $1000 currently proving to be one of Australia’s most successful businesses. Carman’s Fine Foods has and will maintain a comparative advantage in China, easily explained through the use of the porter’s model: a model developed by Michael Porter used to determine how and why a company may have a competitive advantage. In order to be competitive a company must have the resources and capabilities that outmatch that of its rivals. Carman’s fine foods is equipped with the resources of their reputation. They are a family owned Australian muesli business that export high quality and respected products globally. They hold capabilities, allowing them to focus on the production of healthy snacks and meals for the whole family, in comparison to other companies forced to hide their fowl ingredients for sales. Furthermore you could argue that Carman’s Fine Foods has a cost advantage and a differentiation advantage. They strive to sell premium products priced higher than the competition, as their major consumers are high income earning women aged 25 to 54 (Foods, 2017) with an interest in healthy and quality food products. In addition Carman’s key strengths have always been in appealing packaging design, with 57% of all consumers being aware of the brand due to the effective packaging (Foods, 2017). According
A market capitalist economy is an economy that doesn’t evolve the government, rather businesses operate in a market, producing goods and services for the consumers’ needs. Australia manages the economic problem of scarcity by allowing businesses to exchange …show more content…
Prices are determined through the willingness of the consumer. Producers identify the most cost effective methods of production, later sold to consumers with the money to pay for the goods and services. Currently Australia is the number one global export of iron ore and concentrates (by value) (Trade, 2017), exporting 51,708,295 (A$m) of in years 2016 – 17 to China alone, with a percentage growth of 33.4% over the past few years (Trade, 2017). Iron ore is an essential part of the world’s current infrastructure, being a key component in the production of steel: steel being used to make buildings, bridges and all kinds of machines. With that Australia is currently the 6th largest global exporter of gold (Trade, 2017) with export numbers reaching 11,160,274 (A$m) in years 2016-17, with percentage growth reaching heights of 99% over previous years. Gold is used for the production of jewellery, currently a huge market in China. In addition to iron ore and gold, Australia is …show more content…
At the age of 18 Carolyn Creswell bought a small muesli business for $1000 currently proving to be one of Australia’s most successful businesses. Carman’s Fine Foods has and will maintain a comparative advantage in China, easily explained through the use of the porter’s model: a model developed by Michael Porter used to determine how and why a company may have a competitive advantage. In order to be competitive a company must have the resources and capabilities that outmatch that of its rivals. Carman’s fine foods is equipped with the resources of their reputation. They are a family owned Australian muesli business that export high quality and respected products globally. They hold capabilities, allowing them to focus on the production of healthy snacks and meals for the whole family, in comparison to other companies forced to hide their fowl ingredients for sales. Furthermore you could argue that Carman’s Fine Foods has a cost advantage and a differentiation advantage. They strive to sell premium products priced higher than the competition, as their major consumers are high income earning women aged 25 to 54 (Foods, 2017) with an interest in healthy and quality food products. In addition Carman’s key strengths have always been in appealing packaging design, with 57% of all consumers being aware of the brand due to the effective packaging (Foods, 2017). According