Firm-level perspectives on business relations between Australia and the European Union
Australia’s foreign trade and investment activities are disproportionally focused on the UK, whereas Canada and the USA direct their trade relations to other EU Member States. The disproportional focus of foreign investment from Australia on the UK can be explained by the lack of experience and erudition regarding the characteristics of the business environment of the EU Member States. Similarly, firms with limited international experience may have deliberately chosen to conduct business activities with nations that have similar business environments. Only a relatively small share of Australian firms engage in international business. Those that engage in business in Europe perceive it to be easier to deal with the UK rather than other EU countries. Whilst Australian markets have greater parallels with the marketplace in the UK, there is yet no empirical evidence that explains the perception of the business environments of continental Europe and Australia.