Australia is a very exciting market for business. Not only has it been on an upward trend in terms of adoption of technology, but it also has some progressive laws supporting business. The country is nevertheless pretty distinct in cultural terms.

While most of the practices in Australia are similar to the West, a few subtle practices are unique. Here are some cultural tips you should consider if you are planning on doing business in Australia.

No need to mention your academic qualifications

Australians generally do not emphasize their academic qualifications during conversations. In fact, they barely mention them during general conversations. Doing otherwise might invite taunts your way.

Needless to say though, academic qualifications are taken seriously if you are looking for a professional job. Having great credentials will also influence the level of esteem that you will be accorded in the business realm.

Punctuality is important

It is part of Australian culture to observe time. If you have proposed to have a business meeting at a particular time, it will be expected that you will arrive at the stipulated time. Because of this, it would be advisable for you to show up a couple of minutes early in case you are going for an important business meeting. Even outside formal occasions, Australians also observe punctuality in everyday circumstances.

Australians have a collaborative culture

Another important tip for success when doing business in Australia is to take advantage of the group dynamics. Australians are very collaborative in decision-making processes. This influences the general worth ethic of the country.

The prevailing trading psychology is also anchored on the basis of consultation. You should, therefore, be patient enough to allow for an all-inclusive process when doing business in Australia.

Opinionated discourse is not a problem

Australians do not shy away from giving strong opinions. In fact, they find it entertaining when somebody gives their views about issues. Whether you are having business or informal discussions, therefore, do not be afraid to give your views on issues.

As a business person, you will find this culture to be beneficial to you. If you have reservations for anything, you will not be castigated for sharing it with Australians.

Cynicism is common

You might also notice that Australians tend to be quite cynical especially when powerful or wealthy individuals are involved. While it is normal to be proud of wealth or power in many other cultures around the world, Australians do not particularly fancy those in positions of wealth and power.

Instead, there is a general tendency to have respect for those who seem to be of average means. For this reason, avoiding circumstances that portray you as a wealthy or powerful person will be of great advantage to you.

Australians value pragmatism especially when it comes to marketing campaigns

It is part of Australian culture to expect direct and concise sales techniques. If you are trying to push certain products to the Australian market, make a point of pointing out the benefits of that product as well as some shortcomings. Doing so will be appreciated as a balanced selling technique. Aggressiveness when it comes to sales is also not appreciated in Australia. People tend to look for the vital parts of the sales campaign and making it too aggressive will discredit it.

Women are underrepresented in business but their input is valued

Another important cultural tip you should be aware of is that there is a general push to have more women in business. In recent years, Australians have made huge strides as they seek to have the business environment more balanced. While men generally occupy the larger share of the business community, women have been getting into business in much larger numbers in recent years.

This is because of the ongoing cultural shift towards encouraging more and more women leaders in business. You can, therefore, expect to find Australians being enthusiastic about topics that center around women entrepreneurship.

There are indeed many other things that Australians do which might be considered peculiar in the rest of the world. The above though, are the main cultural tips you should take along with you especially if your focus is on the Australian business world.

Australia is a welcoming country that has continued to receive investment from overseas and setting up camp in this country is bound to be a worthwhile adventure.

Just like other economies in the world, the Australian economy is affected by the exchange rate. The exchange rate of the Australian dollar in relation to other currencies in the world can affect the economy either directly or indirectly. In direct terms, the exchange rate determines the value of the goods and services produced locally relative to those that are produced in outside markets.

In indirect terms, the exchange rate has an effect on economic factors that might influence the policy on local production. In overall, the exchange rate has a huge effect on the balance of payments.

At any given time, the Australian dollar is valued at a particular price. If the price of the Australian currency gains over another currency in relative terms, then the Australian dollar is said to have appreciated.

If the opposite is true, then the currency is said to have depreciated. The exchange rates are thus fundamental when trying to understand the economy.

The direct effects of exchange rates

Exchange rates affect the prices of goods locally. The depreciation of the Australian dollar will be followed by a change in the price of locally produced goods. In effect, when the Australian dollar loses value, then the goods produced locally will have a lower price when compared to those that are produced in overseas markets. Visitors to Australia will be able to exchange fewer units of their currency to get the Australian dollar.

People holding foreign currencies will also pay less for services in Australia. If the Australian dollar strengthens, however, Australians will find it much easier to pay for services while in foreign countries. The demand for local currency at the forex market will also be affected by a change in the value of the Australian dollar.

The indirect effects of exchange rates

Just like with the direct effects of exchange rates, the indirect effects of exchange rates are closely tied to the prices of goods. Inflation has a close relationship with the changes in exchange rates. The indirect effects of exchange rates on the Australian economy will be highlighted by:

• The labor market and the general economy
• Interest rates and inflation

Effects on the labour market

To start with, a devaluation of the Australian dollar will lead to the increase in demand for Australian goods. This is because the goods will appear to be cheaper for overseas consumers. There will be increased competitiveness for locally produced goods and the market export will become more attractive.

The level of imports will also reduce as Australian consumers will find goods produced overseas to be more expensive. The local import market will thus shift their attention to locally produced alternatives.

The effects of these changes will be felt in the labor market where the demand for more workers will be apparent. Less demand for overseas goods will create the need for vibrant local industries. Skilled manpower will, in turn, be needed in these industries and this will drive up the employment levels.

The labor market will thus become attractive. An appreciation of the Australian dollar will cause the opposite of this to happen.

Effects on interest rates and inflation

A depreciation of the Australian dollar will result in higher priced overseas goods. This will lead to inflation. Other than that, the increased local demand and employment levels will also ultimately lead to inflation. Excessive inflation might call for a monetary policy change. Since it takes time for these effects to occur in a typical economy though, the adjustment might not be quick.

Firms that sell goods first have to run out of stock before they reconsider their prices. Consumers also take time before they change their habits and so on. The effects thus take a few years to be fully evident.

The balance of payments

Finally, the effects of exchange rates are most important when it comes to the balance of payments. The overall value of goods will change when the exchange rates change. If the currency has depreciated, for instance, the short-term direct effect on the balance of payments will a widened account deficit as a result of decreased net exports.

On the contrary, the indirect effects will diminish the account deficit in the short-term. The long-term effects are, however, the opposite. In general, the changes in the exchange rate will not only affect the consumer market but also the current account and the liabilities of the country to foreign governments.