Economics For Global Decision 1

ECONOMICS FOR GLOBAL DECISION

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 Economics For Global Decision 2

Introduction

The main aim of this paper is to demeanor business growth analysis of McDonalds

Company with its primary business in Australia (Nkonya, Mirzabaev, and von Braun, 2016). The

company was looking on how to expand its branches to other countries like China and India, and

this is after noticing that the company has a consistent target market with abilities of business

growth and achievement in coming days. The purpose of this report is to analyze countries

capacities grounded on e-commerce facilities that can be offered to the McDonalds. Therefore,

these are the section that will be highlighting the demographic abilities of India and China

(Nkonya, Mirzabaev, and von Braun, 2016).

China

According to the census that was companies 2013 China has the population that is

projected to be more than 1billion people with the growth rate of more than 5.5% per year.

China's population is mainly made of young persons. And it covers more than 40% of the whole

population. Adding to that, the aged individual is second with more than 30 million persons who

are above 65 years of age (Parkinson, 2016). The Young population is aged between 14 to 40

years, according to population analysis from World Bank China, the growth population since

2000 to 2013 is about 70 million, and besides, it is an added advantage to impending investors

because China has the mixture of different tribes and races. The immigration rate has raised from

6 percent to 14 percent in last three years. The population is made up of natives, Americans,

Africans, Australians, complements among other individuals.

India

Since India is composed of a young population, it has industrialized regarding using the

internet with an outstanding outcome. The Indian government chose the usage of the internet not
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only in business but also in school for academic brilliance (Smith, and Yip, 2016). The growth of

electronic approach of Commerce has enhanced in the state. Less than 30 % of the population

uses internet as shown below:

5-10 year

This group of young people uses the internet to buy online games, playing games this is done by

the help of family members who are older than them, they use the internet to search hypothetical

materials and also uses it to communicate with family and friends.

11-18 years

This is the largest group that uses the internet. Most of them use the internet for academic

reasons, and also they use the internet to buy clothes among other things (Smith, and Yip, 2016).

They are the largest users of the internet in India according to the research they are more than 40

million people in this age group.

19 and above

These are the group that is well known as the prominent group regarding buying and selling of

goods and services using the online internet. Most of the individuals in this group have families

or married therefore they are dependable for the happiness of their family by purchasing of

clothes amid other things. Adding to that this group covers the wide range with more than 70

million individuals and are well educated through the internet, therefore, they are conscious of

the implication of internet usage.

McDonalds industry information

This is a holding company, and it is one of the 100 businesses that is registered in

Australians safety exchange. MacDonalds company is the essential business emphasis that deals

with delivery of economic and trade services to the upper, middle, and lower income earners in
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Australia and the same to other countries that they do their operations in. This company is well

devoted to growth and development via accountable trade business in Australia and other nations

that they have invested in (Smith, and Yip, 2016). The company has assigned the substantial

amount of resources and time to meet its ecological development viewpoint within the setting of

changing social needs and conservation of company client (Vale, 2016).

China analysis

McDonalds Company considers the proper phase of product and services that it offers

and this give the company chance to attend numerous customers sections. Though the rise of

interest rates in Australia will be considered as limited factors to consumers spending. Therefore,

it will shake revenue growth of McDonalds in the market (Parkinson, 2016).

Considerable range of product

The company gives a broad range of Goods and services. And it has offered the business

an unresolved customers sections. The sections have been separated into different segments such

as teen products, adult product, the children products and other dissection merchandises. Among

its competitors, the company services and products are in excessive numbers in that one can

easily find McDonalds product (Nkonya, Mirzabaev, and von Braun, 2016).

Strong performance:

Some years back the company has been accomplishing well with the esteem to its

supermarket separation that justifies about 70 percent of the MacDonalds company revenue, the

company a clear chance to do well in China since political and marketing framework are

accommodative to guarantee it performs.

India analysis

Increase in Fast Food and Food Market:

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The institution of a consumer to consumer electronic trade is the opportunity that the

company is planning to achieve in the coming days in India markets (Rogowski, John, and

IJzerman, 2016). The upsurge in both first food and food market is a chance that MacDonald

Company is hitherto adventure in India.

Opening of Online Ordering System:

The adapting of an electronic market through mobile is one of the prospects that the

company is previously exploiting in India market (Rogowski, John, and IJzerman, 2016). With

the innovation of internet in India and the large internet use in country, the company must

embrace mobile application that will inspire business two customers and enterprises to E-

commerce business types.

Increase in the Wage Increase

The McDonalds company is expecting that the upsurge of wage will automatically affect

both customers buying power and the company (Stern, N., 2016).

Rising Interest Rates

The increase in interest rate will affect the company, most of the banks have grown their

interest rates. Therefore, the company faces reduction of purchasing power in India (Waage,

Scherr, Jenkins, and Inbar, 2016).

Nature of Trade and Status

There exist trade between India, China to Australia. This can be seen from the export and

import of goods and services as indicated above. However, there are total different business

relationship between India and Australia as well as between China and Australia. It is clear that

the relationship that exists between India and Australia is great and there is also free trade

between the two countries (Hennicker, Janisch, Kraus, and Ludwig, 2016). The relationship
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between the two countries is considered as mutual as the country both countries get reliable

goods and services from each other. On the other hand, China and Australia do not have a mutual

relationship. There is no free trade between the two countries. The two countries does not offer

free trade this means that the countries are not able to bypass imports without paying levies or

taxes. It is also ideal to note that the two countries also have a poor trade relationship, which is

only based on tangible good as well as exchange of human resource.

Exchange Rate

The trade between the three nations is stable. However, this can be altered if there does

not exist stable exchange rate. The trade between India and Australia is often affected by the

exchange rate (Barthel, and Nickel, 2016) The goods and services are costly when introduced in

both countries. This means that imports are greatly affected by the exchange rate of Indian rupee

and Australian Dollar, here Australian Dollar stronger than the rupee and is also affected by

changes in major currencies. However, the trade between Australia and China is not affected by

the exchange rate because the exchange rates are considered stable.

Conclusion

It can be concluded that the trade between India, Australia and China is significant, but it

can only be affected by the exchange rate between the two countries as well as rate of inflation.

With such changes on board, it can be evaluated that the trade between the countries are

dependent on the mutual trade agreements between the countries (Trost, 2016).
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