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Political environment in Australia is quite stable which essentially is a requirement for an over sees company thinking for a foreign investment. The reason why this is necessary is because a stable political environment ensures security for the investor, ensures stable economic policy, stable trade policy and stable foreign policy. A company would never like to invest in a country where the political environment is of a violent nature and there is a security threat to both the life of the employees and also the investment itself.

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Therefore Australia proves to be quite an attractive place for investment with respect to security (Rivers, 1989). Moreover, with stable trade and foreign investment policy, the company will be able to predict its future and plan for future investment and development more accurately without keeping a provision and fear of uncertainty of the changing political environment and subsequently trade policy.

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For example it is seen that in countries where there is no stable government policy, companies do find problems with the foreign and trade policies when one government allows some export and bans the other and when the other political force takes the power, a certain commodity is banned for imports and the other is opened (Filatoff, 2004). Thus the company would find any difficulties in Australia in this matter.

Investment opportunities in Australia are also quite attractive because the country encourages foreign direct investment and provides incentives to these companies in shape of cheap infra structure and technical help in setting up the business. Although Australia does takes steps to safeguard its local industry, but, at the same time it encourages foreign competition in the country because this will lead to transfer of technology, more efficient use of resources and thus the benefit of the consumers at the end of the day which is the aim of every government across the globe.

In this part of the paper, the president of the company will be addressed to look over a few suggestions based on the entire discussion regarding the environmental factors influencing business and investment in Australia. These suggestions will basically focus on what should the management do to make a feasibility report of the investment project and what should be the main focus areas of the research and survey analysis (Kayser, 2005). The first recommendation for the president is to make a feasibility team and send them to Australia in order to analyze the current market, economic and environmental factors themselves.

Information about competitors is necessary because the company should know about what are the competitors doing in the market and what are the main segments that are targeted by these firms. Secondly, in order to know about the consumer preference, a market survey team should also be sent to Australia with a questionnaire especially designed to evaluate customer preference in the following areas: What sport do they mostly prefer? On what professional level do they play? How often do they buy or change their equipment? What brand do they prefer?

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Kylie Garcia

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