Question

Compared to Singapore, South Korea, Hong Kong and Malaysia, what are the advantages Australia has in promoting as an International Financial Centre (IFC)? Provide examples.

Answer 1

Australian economy will be having an edge in promotion of International Financial system as compared to other countries mention here because-

A.Australian dollar is strongest currency among all these currency mentioned here and much more reliable currency than other currencies of Singapore and Hong Kong and Malaysia.

B. Australian economy is a much more developed economy than the economies of Hong Kong and Singapore and South Korea and Australian economy has the highest gross domestic product among all these economies so it will be promoting a lot of foreign direct investment and attracting a large foreign investors because of size of the economy.

C. There will be much more transparency in the governance of International Financial centre in Australia as Australian government will be promoting the good governance.

D. Australian government is always promoting fair and equitable equity markets and it will be promoting international financing centre by preparation of favourable rules and regulation which will be helpful in attraction of foreign direct investment into the Australian equity markets.

E. There would be lesser political intervention in this international financing sector in Australia because Australian economy is known to be much more independent to the business organisations than other economies.

it can be exampled that there is high liberty to the business organisations in Australia and one can see that there is a large amount of interventions in Hong Kong from Chinese government, so Australian government will be preferable to the investors.