Shifting sands in the regional business environment in Australia

Abstract

In recent years, there have been major changes in the global location of economic activity. As the emerging economies assume greater shares relative to the advanced economies of the world, local and international businesses are poised to reposition their engagement portfolios. Globalisation and shifting political and economic landscapes are contributing to significant changes in populations, urbanisation, resource utilisation, technology, the internationalisation of production locations, and stakeholder attitudes. In a highly globalised trade and investment environment, attention needs to be given to how businesses can benefit from geographically dispersed activities. The world is much more connected through trade and movements in the capital, people, and information. With the evolution of communication networks, there is now greater connectivity. The rise and role of non-profit organisations and civil society groups are exerting pressure on business enterprises to comply with international standards of human rights and labour laws. Trade and finance have long been part of the globalisation story but, in recent decades, there has been a significant shift. Instead of a series of lines connecting major trading hubs in Europe and North America, the global trading system has expanded into a complex, intricate, sprawling web. Asia is becoming the world’s largest trading region. ‘South-South’ flows between emerging markets have doubled their share of global trade over the past decade. Each year Australia brings in around 180,000 skilled migrants to run its economic activities. The challenges of the post-global financial crisis have forced businesses and countries to be innovative, and the links forged by technology have ushered in a dynamic new phase of globalisation, creating unmatched opportunities and, yet at the same time, provoking unexpected volatility.The impact of COVID-19 on businesses has devastating outcomes. Business impacts of COVID-19 include business revenue, operating expenses, and employment. A study in July 2020 on 2,500 businesses shows that 47% reported a decrease in revenue and 54% are surviving due to cash support by the government. The majority of businesses suffer as the demand for their goods and services is reduced. Consequently, many businesses reported that they have reduced staff hours or let staff go. COVID-19 has resulted in some of the greatest supply chain disruptions ever experienced in Australian food and agriculture – affecting trade into both domestic and export markets and challenging producers to employ creative freight and operational strategies. The most commonly reported impacts of the COVID-19 pandemic are a lower demand for goods and services, cash flow issues, and having to change business practices. Nearly one-third of businesses have reduced staff since the onset of the COVID-19 pandemic. The cases in this book will analyse the impact of the COVID-19 pandemic on business in various sectors of Australia focusing on regional and national businesses. © 2022 selection and editorial matter, Quamrul Alam, Robert Grose.