What Is The Impact Of Mnc On Australia

The current conclude that JAEPA will able to give more chance for MNC’s to being set up in Australia. People who agree and disagree with MNC gave view on the Free Trade Agreement (FTA) but at the end the government will decide the decision. As found that the total two way trade was $70.65 billion. There are few MNC like Daiso, 7eleven, and Toyota. Therefore, there are some impacts on MNC’s on Australia being host country and Japan is the home country.

Australia tax revenue will increases because taxes are one of the parts where MNC gets benefits. Most of the MNC will reduce the import, export or custom duties to increases international trade. Thus, taxes are the area to increase revenue, which show increase from 32500 to 37500 million from

The existing MNC company will take the high risk to invest in. As a result of the huge amount of fund, Australia’s mining sector successful attracts large amount foreign direct investments to Australia hit highest $57525 AUD million (trading economics). China invested the largest amount in mining sector in Australia . China’s the largest strength in global manufacturing lead to give high business confident to the ongoing company. The present china MNC’s has fasten the speed to establish an Australia-China Joint Research Centre for mining purposes as it is use to do research and development of mining sector. This research and development process will provide Australia scientific, accurate , technology suggestion. With the research and development procedure many investor from other country especially China investors have a very high expectation in this mining industry

Even though 7Eleven increases the retail store from 350 to 600 in 2014 to 2015 but research found that 7eleven only pay $10 per hour , which underpaid their worker as minimum wages is $17.29 (DIAGRAM 2). The government will set a minimum wages to protect the worker from being exploited. Law is reenforce by clamp down on the working visa.

Conclusion

In conclusion, JAEPA would rise the current Japan MNC’s in Australia. Although MNC’s in Australia would stimulate the technological transfer and government tax, these advantages are to balance various disadvantages that produce by MNC’s. Hence, the government should direct the MNC’s to the right economy path and restructure the agreement so that the negative impact will be minimise.

Overall conclusion

In the mere future the Free Trade Agreement and Multi National Corporation will expand more than a country’s GDP as found that Toyota Motor’s GDP is higher than the middle and low development country like New Zealand, India, and Niger . Toyota motor’s GDP is 263 and Niger is only 8. As a result, this can show that (FTA) and (MNC). There is a saying that “Free trade with China is the key to a better future for region” so, Australia become better as the livestock Australia forecast that their sector will get advantage by $11 billion over the next 10