Why Australia Needs To Be A Branch Economy

Australia is unique. Economically it is an advanced economy that is geographically isolated. Unlike other countries, it lacks adjacency to its trading partners. Unlike large, resource rich countries, Australia is economically powerful on a per capita basis. This presents a dilemma for MNCs. MNCs that invest in Australia are doing so because of the resources available in this country. Because these resources are part of a global network that would be unavailable to a local operation. No investment in Australia is just to gain ‘market’ access. Australian subsidiaries must prove their worth as a major contributor to the MNC network.