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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
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,
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
Economics For Global Decision 3
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
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
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
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
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
Economics For Global Decision 4
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
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,
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
India analysis
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
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-
The McDonalds company is expecting that the upsurge of wage will automatically affect
both customers buying power and the company (Stern, N., 2016).
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,
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
Economics For Global Decision 6
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
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).
Economics For Global Decision 7
Reference
Barthel, R. and Nickel, D., 2016. Modelling the Effects of Global Change on Drinking Water
Hennicker, R., Janisch, S., Kraus, A. and Ludwig, M., 2016. DANUBIA: A Web-Based
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Waage, S., Scherr, S., Jenkins, M. and Inbar, M., 2016. A scoping assessment of current work on
payments for ecosystem services in Asia, Latin America and East & Southern Africa.
Forest Trends.
Stern, N., 2016. Economics: Current climate models are grossly misleading.Nature, 530(7591),
pp.407-409.
Rogowski, W., John, J. and IJzerman, M., 2016. Translational Health Economics.
Nkonya, E., Mirzabaev, A. and von Braun, J. eds., 2016. Global Assessment of the
Parkinson, M., 2016. Economics of power: Stepping towards a new global order. Griffith
Smith, P.C. and Yip, W., 2016. The economics of health system design.Oxford Review of