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Interest Rate Changes In The Australian Wine Industry

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Introduction

As an emerging nation of immigrants, compared with the old world wine producing countries, Australian brewing way is different, beside of follow strictly the traditional way to brew wine and also use the advanced brewing technology and modern winemaking equipment. In addition, Australia stable climatic conditions enhance the quality of their wines each year.

Since Australian wine particular emphasis on the regional characteristics, it influence the products come with special characteristics. In just 200 years, grape planting technology in Australia has made vigorous development, the production of wine is up to 1 billion liters and it has exported to the world more than 800 million liters.

Porter’s National Diamond Analysis …show more content…

Generally, if a country interest rates increase, the currency exchange rate tends to increase; and when a country currency rate cut is likely to devalue the country's currency. Forecasts for next year shows that the Australian dollars are poised for tumbles as policy makers consider interest-rate cuts to spur growth. Interest-rate cuts not only can stimulate Kraft Foods Group’s business. The economic growth can increase employment rate and to improve people's consumption which is a good news to the business too. Hence, exchange rate movements will cause the import and export commodity price changes, thus affecting a country's import and export trade. Currency depreciation of a country can increase exports business. Thus it can enhance Kraft Foods Group’s wine business to another …show more content…

Above is a list of the biggest North American food and beverage companies ranked according to annual sales. From the data above can see that food and beverage industry in America has extremely strong competition. In order to survive in this highly competitive market, the ability of Kraft Foods Group itself cannot be doubt. However, this can also enhance the Kraft Foods Group firm efficiency to enter the Australian market.

The US scores below average on the Uncertainty Avoidance dimension. Low degree of uncertainty avoidance in society, people are more receptive to the uncertainty in life and able to be more tolerant of ideas or opinions from anyone. In addition, they don’t want to take things as they are and more willing to try something new or different. Coordinate of the employee is a key criterion of success project. As the chief executive officer of Apple Inc. said in 2013 , “Our most important resource is not our money, our intellectual property, or any capital asset. Our most important resource — our soul — is our people.” The low uncertainty avoidance characteristic of the employee are more likely to bring Kraft Foods Group to another succeed because they are willing to take risk and jump at the

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