With continued bad press on the ‘Eurozone’ are there still market opportunities? Of course there are precautions that must be taken when stepping into this high risk market. Several things must be considered to effectively assess possible Eurozone opportunities for Australian exporters.
An internal analysis of the Eurozone appropriately measures the strengths and weaknesses of the market. Due to consistent financial turmoil there are distinct weaknesses presented throughout the European Union. The weight of debt on European banks is severe while bank lending is at an all time low. Excessive government debt has developed a strain of uncertainty from a policy perspective and created pressure for improvements on regulation or even a possible Eurozone break up. Constant chaos in the Eurozone has left business and consumer confidence at an all time low from a domestic standpoint. However, despite the Union’s weaknesses there is a sense of strength within European society. Citizens of the Eurozone are ready for change and quite keen for growth. With consistent disappointment from an internal perspective, society is looking elsewhere for financial stability.
From an external perspective there are several opportunities that exist within the Eurozone. Because all internal help is currently being focused on the banking system, assistance in other regions of the market must come externally. This is where Australian exporters can potentially step in to take advantage of multiple opportunities. Buyouts, outsourcing, mergers and acquisitions are just a few of the opportunities presented in the Eurozone. High skilled European workers are willing to work for lower salaries due to the poor employment market. Companies on the verge of bankruptcy are willing to sellout at extreme costs. European businesses and consumers are now looking internationally for future growth although this can be a problem when they look towards Australia.
The question is: Can Australian exporters provide the light at the end of the tunnel for the European debt crisis? Hear more on this topic and discussion of several other opportunities for Australian exporters at this year’s Economic Road show hosted by EFIC and the Export Council of Australia. For further details and registration click here
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-Melissa Baker, International Project Co-Coordinator, Export Council of Australia
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