An Australian MNC has subsidiaries in France, China, Canada, Turkey Essay

An Australian MNC has subsidiaries in France, China, Canada, Turkey and Vietnam, Indonesia and South Africa. With particular reference to legal, political, eco - Essay Example nent â€Å"down under† that expounds on European legacy with a democratically free market economy that just adopted economic reforms in 1980s contributing to its current robust economy. With a Western-style capitalist economy, output had risen beyond the internal needs so that raw materials and agricultural products lead the export sector of Australia. Low inflation, reforms and strong ties with countries like China coupled with conservative fiscal policies have maintained a very strong economy boasting of a $642.1. billion GDP purchasing power parity (CIA, 2006) and a 2.6 percent 2005 growth rate estimate. Australia’s GDP per capita is $32,000 as of 2005 (CIA, 2006). In order to necessitate different approaches to the establishment of an Australian multinational corporation’s (MNC) subsidiaries and their on-going operations in countries like France, China, Canada, Turkey, Vietnam, Indonesia and South Africa, various legal, political, economic and cultural issues must be addressed. Following are a country-per-country exploration on tackling business in consideration of the country’s environments, needs and other issues: Zitta Jewelries Corporation established in 1978 is one of the clienteles of Climax Mining Limited of Australia with vast connection and outlets all over the world, or among country capitals and major cities. Zitta either supplies raw materials such as gold, silver, copper, precious and semi-precious stones to jewelry manufacturers all over the world but they also distribute finished jewelry products, with their own exclusive jewelry shops in France, Canada, China, Turkey, South Africa, Vietnam and Indonesia. It employs about 350 persons all in all. Likewise, Zitta also outsource products from various countries especially where subsidiaries exist and leverage this products in all other outlets. Zitta both supplies raw materials to a subsidiary, or either source out raw materials from the subsidiary country when allowed. This way, each