Regional Focus
australia

The grass is always
greener on the other side
(of the world)
by Anna Parkin, Director of Global Development, Melbourne Business School
in suburban streets, lawns once green have turned a golden yellow and on the farms,
the parched landscape is typical of a country suffering from severe drought. But to
prospective MBA students, Australia’s economic environment remains enticingly green.
The economy is holding packages late 2008 with fund injections into
In mid January 2009, the U.S. reported the worst industry and cash payouts for lower income
unemployment figures in 26 years at 7%. Interest earners and first home buyers, followed by an
rates were slashed to 0.25% in a desperate attempt investment partnership with the major banks to
to salvage what was left of a critically ill economy support the commercial property sector. The
and the same dire news was radiating from other government also moved to ensure liquidity in
economic powers such as the U.K. and Japan. financial systems and mortgage markets, and
Even China was not immune, with reports of introduced reform to regulate credit and
growth almost halved. Meanwhile, in Australia, international finance, it guaranteed deposits and
unemployment sat at a low 4.5% and the official wholesale funding of financial institutions, and
cash rate was 4.25%. most importantly, boosted the confidence of
Although there is dispute about the extent everyday Australians. Coupled with lower interest
of the crisis, most economists agree that Australia rates and tax cuts, this makes Australia one of the
is well placed to avoid the worst of it. There is no most liveable places in the world.
doubt that the economy will slow, but it’s unlikely
to go into recession. Australia has a growing The business scene is strong
economy with a per capita GDP that exceeds What are the differences between doing
most other developed countries and its proximity business in Australia and doing business in the
and professional ties with the Asia Pacific make it rest of the world? According to visiting MBA
an ideal location for managers in any industry. students from Stern to Melbourne Business
This cannot be said of any other major MBA School (MBS) earlier this year, Australian
market—the U.S. and Europe in particular. executives are forced to have a more global
Australia is in an enviable position to respond perspective, to be less phased by adversity and
aggressively and decisively to imposing threats. to be more accountable in their marketing
“The great advantage Australian efforts—and they appear to place more value
policymakers have on the fiscal front is that there on an equitable life-work balance.
Melbourne
is no concern about public debt levels becoming Australians think of the whole world as a
unsustainable, as is the case in much of Europe single market, unlike their overseas counterparts But isn’t Australia too far from the world’s
and the U.S., since we don’t have any debt,” says who think of it as separate markets, says Stern biggest markets to be of benefit to really
Mark Crosby, Associate Professor of Economics student Luis Sanz. Australians are exposed to ambitious MBAs? “Not at all,” says John Seybolt,
at the Melbourne Business School. different cultures’ needs and have an open mind MBS Dean. “Australia is inextricablylinked to
And Australia’s Federal government has to different ideas. This mindset encourages more global corporates, not only because many major
been proactive. Universally praised for its quick creativity in business because of the need to deal multinationals have offices here but also because
response, it announced the first of its stimulus with different consumer tastes. of extensive trade relationships with other
154 TopMBA CAreer Guide www.topmba.com

TopMBA CAreer Guide www.topmba.com 155
MBA_SPR09_pp_052-155.indd 154 17/2/09 15:20:35
Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98  |  Page 99  |  Page 100  |  Page 101  |  Page 102  |  Page 103  |  Page 104  |  Page 105  |  Page 106  |  Page 107  |  Page 108  |  Page 109  |  Page 110  |  Page 111  |  Page 112  |  Page 113  |  Page 114  |  Page 115  |  Page 116  |  Page 117  |  Page 118  |  Page 119  |  Page 120  |  Page 121  |  Page 122  |  Page 123  |  Page 124  |  Page 125  |  Page 126  |  Page 127  |  Page 128  |  Page 129  |  Page 130  |  Page 131  |  Page 132  |  Page 133  |  Page 134  |  Page 135  |  Page 136  |  Page 137  |  Page 138  |  Page 139  |  Page 140  |  Page 141  |  Page 142  |  Page 143  |  Page 144  |  Page 145  |  Page 146  |  Page 147  |  Page 148  |  Page 149  |  Page 150  |  Page 151  |  Page 152  |  Page 153  |  Page 154  |  Page 155  |  Page 156  |  Page 157  |  Page 158  |  Page 159  |  Page 160  |  Page 161  |  Page 162  |  Page 163  |  Page 164  |  Page 165  |  Page 166  |  Page 167  |  Page 168  |  Page 169  |  Page 170  |  Page 171  |  Page 172  |  Page 173  |  Page 174  |  Page 175  |  Page 176  |  Page 177