Adding on, certain international businesses that are lurking for employees, might move to Australia, as …show more content…
Inflation Rate Likewise, to the problems risen regarding international business because of unemployment, the same situations businesses need to endure, when the inflation rate rises. This is because the purchasing power of an individual is reduced, as the amount of goods or services they would be able to buy is reduced in quantity. For instance, “if the inflation rate is 2% annually, then theoretically a $1 pack of gum will cost $1.02 in a year” (Hayes 1). As mentioned previously, when the cost of living increases in Australia, those businesses that sell expensive products will not be able to make grand amounts of profits, as the poor and middle class will be frugal and careful with their spending (Hayes 1). Furthermore, the inflation rate being higher than usual, would scare away potential international businesses as they would recognize that Australians are probably already having trouble making ends meet, so establishing a business there which would cost millions of dollars, would be useless. In contrast, those international businesses that are already very rich and have cheap products, would find Australia as a gold mine as there are many potential consumers who would love to save money and purchase cheap