4. PEST Analysis (Factor Affect Business)
Political factor and economical factor (in our opinion both are related to each other as the our economics is the result of politics)
“The car prices in Australia fell 2.8 per cent in 2014 according to the ABS, even though the dollar depreciated 15 per cent, but it shows that the main reason was not about the dollar.
It was the fact that so many people are losing their jobs as a result of the closure of car industry. The modern auto factories employ robots and people are not necessary anymore.
Inflation began in the December quarter, but the prices of clothing, computers, TVs, cars, fuel and pharmaceuticals all fell. Meanwhile, Australian costs all went up. Wages rose 3 per cent and real estate prices rose almost 10 per cent”