The markets may keep a close watch on exchange rate fluctuations, and make investment decisions accordingly, but recent research shows most Australian exporters do not let exchange rate fluctuations affect their business plans.
Austrade chief economist Tim Harcourt said Australian exporters had historically proved able to adjust well to floating exchange rates. In fact, he said, the floating exchange rate had been an overall strength for economic policy in Australia.
“According to research by Austrade and DHL, whilst most exporters regularly monitor the exchange rate, only 20 per cent believe that it will affect their decision to further invest or expand their overseas operations,” Mr Harcourt said.
“Surveyed exporters see the moving exchange rate as a fact of life of operating in a global economy and make their decisions based on long-term plans and building strong relationships with clients, customers and business partners.
“Austrade research shows many potential exporters have all the right attributes, economically speaking, yet they don’t have the confidence or attitude to take the first step.
“This is when a bit of export coaching and marketing advice can turn these potential exporters into fully fledged global businesses.”
Meanwhile, Mr Harcourt said new Australian Bureau of Statistics figures revealed that, out of the 42,194 Australian exporting businesses in 2005-06, New Zealand remained Australia’s top export destination, even though Japan was our most lucrative export market in dollar value.
“Figures show 17,394 Australian businesses exported to New Zealand in 2005-06. This indicates that many exporters actually find exporting across the ditch relatively easy and that Kiwiland is a good nursery to start with when learning the craft of exporting,” he said.
“Despite these figures, while New Zealand attracts over 17,000 exporters and Japan only 3,634, the value of exports to Japan was over $31 billion, whilst exports to New Zealand were worth under $9 billion.”
