Issues in Global Business and Strategic Concepts Essay - 1

Issues in Global Business and Strategic Concepts - Essay Example In this paper, the proponent provides the necessary recommendations for the government to consider in order continue expand Australia’s leading role in mineral extraction in the world. Keywords: mining, mineral extraction, Australia Table of Contents Executive Summary 1 Introduction 3 Industry Gross Value Added 4 The Value of Exports 5 Operating Profit Before Tax 6 Mineral Production 7 Assessment of Mineral Extraction to Australia’s Economy 8 Domestic Issues 8 International Issues 9 Conclusion/Recommendations 10 References 12 Appendices 14 Introduction One cannot deny the fact that Australia is one of the countries with largest mineral extraction industries in the world today. It holds abundant supply of natural resources allowing it to generate a great opportunity to supply the world market as it is capable of providing affordable minerals of its own and efficient than other producers. This places Australia in the point of absolute advantage (Zhang, 2008). Furthermore, this sets Australia in the position to possibly be the unbeatable leading player in the global mineral commodities in the long run. This maximizes its potential to comparative advantage (Mudd, 2010). This information must be specifically appealing to the Australian Government, because in totality this has significant impact on its economic growth and development. Recently, Australia has continuously gained investor confidence because of its competitive business climate as revealed through its surging high foreign direct investment (FDI) inflow which doubles over five years to 2012 (Australian Trade Commission, 2013). This report is presented to the Australian Government which provides the actual assessment of the contribution of mineral extraction activity to Australia’s economy, and consideration of domestic and international issues that need to be addressed in order to maintain and expand Australia’s current position as the leading producer and exporter of minerals such as iron ore, coal and gold. The implications of these issues for Australia’s future are also included. Therefore, the work at hand provides the remarkable economic figures that will present the actual data prior to the analysis and assessment of the contribution of mineral extraction to Australia’s economy. In addition, the prevailing domestic and international issues that at some point may have strong contributions to the actual capacity of Australia to maintain its current position as a leading producer and exporter of minerals will also provide the bases of the actual recommendation for the Australian Government. Industry Gross Value Added Industry gross value added (GVA) is the contribution of an industry to the country’s gross domestic product (GDP). Based on the Australian Bureau of Statistics (2012), the total production of Australia’s Mining Industry as measured by the GVA showed a positive direction from year 1989 until 2010, which was clear ly indicated by increased of 6% between 2008-2009 and 2009-2010, a double increase of percentage between 1989-1990 and 2009-2010. As shown in Figure 1 in the Appendices, the graph taken from the site of Australian Bureau of Statistics shows the actual GVA of Australia’s Mining Industry in terms of volume. The information in Figure 1 reveals not just about the volume of production, but the associated positive