Role of Politics in the Australian Business Market Essay

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Role of Politics in the Australian Business Market

Politicians are the most influential members of any society. They make policies and decide on the many things that people go through. Policymaking is the basis for the sobriety and well-being of a society. Residents of any country must have sober and mindful politicians. This is because the politicians have a chance to influence every facet of the society. Australia is one such country where the political classes have a big say in whatever happens in the country. The democratic space in the Australian society is quite fair with everyone having a chance to air his or her views (Carey, & Lohrey, 1995, p.22). However, to some extent, people still trust the politicians on issues that touch on the societal common good. This paper gives arguments in support of the belief that business in Australia would be better served if more politicians had business experience.

Thesis statement: Australia would be better served if more politicians had business experience.

The role of politics in business: Australia

Business operations in a country are guided by policies that are made by those in positions of power. In this case, the political arena is very influential in the market growth. For instance, there are issues such as taxation, business permits, trade engagements as well as international trade fairs with other nations (Hayo, & Voigt, 2013, p.48). Notably, the politicians make policy ties with other nations as well as with businesses that are from other countries to be possible. As noted in the case, the Australian people will best benefit from a political class that is trained in business manoeuvres and other related aspects of the trade. This can happen if the electorates choose those leaders who are best known for business acumens and those who have demonstrated good business practices in their private life (Sutton, 2003, p.3). Such politicians will not just be making policies on baseless grounds but will be putting into consideration all the factors that surround the trade (Acemoglu, & Robinson, 2013, p.173). In all cases, they will be formulating policies from an informed point-of-view. Such kind of approach will see the business environment improving to such a good level, a near perfect business environment.

The determinants of profit making in relation to governance

A number of factors must be considered when for-profit ventures are being established. First, a business can best thrive when the country charges affordable interest rates. The charges should be low enough to encourage business but high enough for the government to collect satisfactory revenue (Solomon, & Flores, 2001, p.12). Secondly, the business class will require the help of the government in the construction of infrastructure that supper trade. Such basic requirements as road connections, telecommunication industry as well as energy provision among others are all very important in business development. These are services provided by the government and are helpful in making the business thrive. If the Australian politicians had a pure business background and that they are good at it, then the services that the government owe the business community would easily be met. The business would greatly benefit from their input in making policies that favour the installation and setting up of these services (Koukoulas, 2015. p. 31). People have always registered positive results when they deal with a cooperative government. For instance, with the coming up of good results from the business sector, the government will by extension benefit from the earnings. The occurrence of better profits means that the government will collect more income tax. The expanded businesses will also employ more people who will contribute more funds to the government in terms of income tax (Bowornwathana, & Poocharoen, 2010, p.306). The tax level that people pay increase with increase in their income, which comes about when the business in question expands in operations. These facts discussed here serve to demonstrate that the business fraternity in Australia and any other country depends on the government for its growth (Jones, 2011, p.2). It also shows that the benefits reaped are not one-sided but mutual. The political class will only see this in case they are from a business background. They will also find benefit in the success of the business class as noted above.

Globalization is also a factor that has been welcomed by business ventures in Australia and other countries of the world. The internalization agenda has characterized business in the modern world. Reasonably, most organizations have put branches in the international markets (Kelly, 1994, p.19).

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The reason for this has always been to increase the profit margins by venturing into new markets that offer better potential. Consequently, it has been seen that most companies make profits from external markets than from home markets. As seen in the world's major companies such as Toyota Company of Japan, profits from the external markets can exceed those of the local market. Toyota Company sells more of its cars in the overseas markets than it does locally in Japan. Australian companies cannot successfully venture into the international markets without the positive support of the political class (Kolodko, 2014, p.25). The politicians are responsible for making efforts to foster good relationships with other countries. It is a known fact that trade cannot happen between two countries, which do not enjoy good relations. For this reason, the politicians must come together and choose to market their country for the benefit of the traders (Acemoglu, & Robinson, 2013, p.175).

It is only when the politicians understand the world business dynamics. The Australian business people have everything to gain from a political leadership that understands their mandate as international relations builders. The managers will always insist that the political leaders formulate an international policy for them to be able to see through the business agenda on the international frontier ((Bussy & Kelly, 2010, p.289). Most importantly, the business class strives to have a well-represented team in the government that will be in charge of advocating for better trading terms with the outside markets. This also enables the businesses to learn from the international community through the government.

The business environment within the country is also highly dependent on the political environment. There are business conditions that are needed for the sober existence of businesses (Robison, & Ritchie, 2010, p.7). For instance, the taxes have a great influence on the kind of business that will take place in the industry. The business environment that is play is greatly influenced by the amount of levies charged in the form of taxes. For instance, with the introduction of more taxes, most businesses will shy away from the market. The contrary is true, where low tax rates will attract more business activity. As seen in most cases, businesses go for the cheaper option as part of the cost minimization agenda (Bowornwathana, & Poocharoen, 2010, p.304). This is made possible by a political class that is well versed in matters of business operations.

Arguments against

There is no guarantee that politicians who have been trained in business dynamics can represent the interests of the business class adequately and appropriately. It is a common phenomenon among many employees worldwide to use the power that they have been given for personal benefit. In most instances, the people who are elected to the post of leadership in the political arena end up instituting rules that are meant to favor their interests (Young, 2007, p.10). In no time, the people who suffer most are the ordinary business people wit little influence on policy making.

Another argument against the thesis is that business advocacy is a simple and plain concept that does not require the politicians to have training in business for them to authorize. The matters mainly deal with making the business environment conducive for all. This means that the business class can still benefit from the politicians who are not necessarily in the business class (Goldblatt, & Maidment, 2012, p.18). Politicians are always expected to show some willingness in working and creating favourable business environments. This will push them to advocate for the interests of the business people. In case of challenging and technical issues in the business, they can always consult the experts in the field. This means that the politicians who have a will to help in establishing a good business environment will not have the excuse of limited business training. This disqualifies the above assertion that business training is mandatory in political leadership (Bussy & Kelly, 2010, p.290).

Conclusion

Political leadership is the most influential form of leadership in any society. The input of the political leaders in policymaking and opinion shaping is immense. For this reason, it has to be harnessed to achieve the best results needed. For instance, the business class use politicians to propagate good policies that will ensure success in the sector. For instance, in Australia, the political class plays a very influential role in shaping business policy. This has made the business class to.....

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