Issues in Global Business and Strategic Concepts Essay - 2

Issues in Global Business and Strategic Concepts - Essay Example Being a major contributor to the economic growth process, Australian mineral extraction sector supports a better quality and standard lifestyle of the citizens. Nevertheless, the research also revealed that there are also few noteworthy negative consequences caused by the increasingly expanding functioning of this sector, affecting especially the indigenous people and the environmental stability of the continent. Table of Contents Executive Summary 2 Table of Contents 3 Introduction 4 Contribution of Mineral Extraction in Australian Economy 4 Benefits and Advantages of Mineral Extraction to Australian Economy 8 Domestic and International Issues in Australian Mining 10 Conclusion 12 References 13 Introduction Australia is world renowned for its rich and unique natural vegetation, cultural diversity and democratic stability in comparison to other developed nations, which makes it one of the strongest economies in the world (The Associated Press, 2013). Apart from these characteristics, Australia is also appreciated in the global realm for its abundant and diverse natural resources, which has since long been attracting the foreign investors. It includes an extensive collection of copper, gold, uranium, coal, iron ore, natural gas and renewable energy sources (Central Intelligence Agency, 2013). Australia, with a Gross Domestic Product (GDP) of AUS$ 1.57 trillion and a wealth of AUS$ 6.4 trillion, can be considered as one of the world’s biggest capitalist economies (Central Intelligence Agency, 2013). In rewarding the economy with its leadership position in the global platform, on the basis of its GDP growth, its mineral extraction sector can be regarded to have a major role. For instance, the mining sector in Australia signified approximately 19% of its total GDP as on the fiscal year 2011-2012 (Colebatch, 2012). In Australia, mining ores have a major contribution in boosting up the economy’s growth prospects in comparison to other mineral extraction functions. Based on the above facts it can be affirmed that having low inflation, low government debts, low unemployment rate, highly skilled workforce and a high quality education system, Australia has emerged as the fastest growing regions in the world (McHugh, 2010). Contribution of Mineral Extraction in Australian Economy Major active mines in Australia include the Olympic Dam and Super Pit Gold Mine. Large quantities of minerals are extracted here, which includes iron ore, nickel, aluminium/bauxite, diamond, uranium, silver, gold, copper, zinc, coal, petroleum and natural gas among others. For instance, in 2008, Australia was counted as the world’s third largest supplier of iron ore after China and Brazil, with a supply of 332 million metric tonnes (Jorgenso, 2010). Additionally, Australia was also attributed as the world’s 2nd largest producer of Nickel in 2006 after Russia (Louthean, 2007) and world’s largest producer of Bauxite/Aluminium in 2011 (Bray, 2012). In case of gold, Australia is referred as the 2nd largest producer in the world, after China (McHugh, 2010). Similarly, like gold, Australia is also the 2nd largest producer of Zinc, after China contributing 14% of the total world production of the Zinc (Tolcin, 2010). Correspondingly,