The paper "Comparing How Governments of Australia and France Make Industry Policies" is a good example of a business case study. The vibrant manufacturing industry has been seen by many governments as a crucial part of a prosperous economy. Industry policy is any form of active, monetary or administrative support by the government to the industry. Additionally, it is also referred to as government instructions, laws and regulations. Industry policy is a standard that is meant to encourage or discourage economic investments within a given industry. The Australian government has had a supportive industry policy for the manufacturing industry.
The government has developed its industry policy by the introduction of tax concessions and facilitated investments. Examples of the protectionist aspects of industry policy are trade barriers, tariffs and quotas. These policies increase costs and reduce the number of imported goods and services. On the other hand, post-protectionist policies improve success, competitiveness and market share. Industry policy has been changing due to the financial crisis facing the world. This has led to a higher focus on industrial (horizontal) industry policies rather than the sector-based (vertical) industry policies.
The vertical policy is also referred to as anticipatory model; its aim is to protect the industry from the effects of free trade policies. This paper aims at comparing how the governments of Australia and France make industry policies. It also analyses the influence of interest groups in the red wine industries of both countries. France is among the most industrialized countries globally. That is why it is categorized under the G8 group of countries. In 1999, about 19.3 per cent of France’ s GDP was contributed to by the manufacturing industry (Gene & Gene 2012).
Therefore, the French economy has transformed from a rural economy into a world economy. This has mainly been contributed by the implementation of civil law in policymaking (Hayden, 2010). Australia has also been developing although it still applies the customary law in its industrial sector. The transformation of the two countries has been attributed by industry policies that have been implemented by the government and other interest groups. Manufacturing is a major sector in the Australian economy because it forms 10 per cent of the country’ s total employment.
The manufacturing sector is stable although the employment levels fluctuate during and after recessions (Australian Government: Department of Innovation Industry, Science and Research 2010). Australian and France industry policies have several similarities. For example, Australian trade policies aim to open markets to trade, minimize trade barriers and facilitate easy access to Australian goods and services. This is similar to France’ s trade policy which encourages innovation. This is achieved by improved government’ s policies, rules and regulations to improve productivity and innovation. Therefore, both countries’ industry policies are motivating to investors.
However, industry policies in both countries can impose demotivating regulations or policies. Examples of motivating policies are export promotions, tax holidays, development of infrastructure, exemptions from tariffs and provision of health care. These policies are innovative in nature and as a result, they create industry renovation, international competitiveness and support to the public sector (Henderson & Cockburn 1996). On the other hand, demotivating policies are increased interest rates, privatization and changes in institutions. Such policies discourage investment and competitiveness in the manufacturing industry.
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