Australia’s Asian business orientation: investor and intermediary

Considers the significant shift of Australian business investment from Europe and the USA to the Asian region since 1992. Reveals that over 65 per cent of manufacturing, 90 per cent of infrastructure, and some 90 per cent of services investment, committed or under consideration in the last three years, involves projects in regional states. Survey findings suggest the need to locate operations close to customers is the primary motive, followed by the growth of particular markets. Lower labour costs have also been a factor. In recent years, Australia has also sought to position itself as a regional headquarters location ‐ and has been particularly successful in the telecommunications and software sectors. Finally, Australia has sought to attract regional firms seeking bases in, or experience of, Western environments. Argues that all these developments mark changes in business strategies and in the public policy environment. This realignment of activities creates new opportunities for international managers as it poses an array of new strategic and operational issues for Australian managers. These implications have yet to be reflected in management research.