Export Finance and Insurance Corporation (EFIC) have launch the results of their annual GRi (global readiness index). The GRi, which surveyed over 900 Australian businesses in March this year, provides an insight into the ‘going global’ experiences of Australian companies – their drivers, destinations and the barriers they are facing.
Highlights of the 2010 EFIC GRi:
- Offshore expansion is a strategy to increase market share and serve local markets, rather than to cut the cost of goods to be shipped back home. ‘Increasing revenue/market share’ was cited by 86% of respondents as a reason for expanding offshore and 81% said their offshore operations aimed to ‘serve the local market’.
- Australian companies are focussed on overseas expansion. Seventy-eight per cent of companies with offshore operations plan to expand them and 26% of respondents without offshore operations plan to expand offshore.
- ‘Old’ markets are as attractive as emerging markets. Of the five top offshore locations for Australian companies, the traditional markets of North America (30%) and Europe (26%) rank equally with the rapidly developing markets of South East Asia (30%), New Zealand and Pacific (28%) and China (27%). This suggests Australian companies consider a range of factors when choosing where to invest. Despite the risk of persistent macroeconomic weakness in traditional markets, these large, prosperous, transparently regulated and easily accessible markets remain attractive investment destinations.