Exports Of Wool And Woollen Commodities While Encouraging National Cul

Question: Exports Of Wool And Woollen Commodities While Encouraging National Culture. Answer: Introduction It is saddening that despite the large scale on which wool is produced and the low cost incurred; the woollen and worsted textile industry in Australia remains undeveloped. Wool is the second most exported agricultural produce from the country and makes up 11 percent of the total exports of farm products (Wool Producers Australia, 2016). Not only is Australia a major producer and exporter of natural fibres including wool; but textiles and clothing are a heavily protected sector in Australia. In fact, wool is counted among the most exported items in Australia. Historically speaking, Australia continues to export the raw product and not the finished goods. While more than 75 percent of greasy or non-processed wool is exported; only 5 percent of the total wool produced in the country is processed into the finished textile products within the country (Lloyd, 1989). The lack of development of this sector has been attributed to several factors, particularly the low demand for woollen products within the country due to the tropical climate prevalent here. Therefore, although the climate is perfect for rearing sheep for producing wool; not much has been done for the industry as there remains a lack of demand for the product within the country (Lloyd, 1989). This sorry state of affairs needs to be rectified on a war footing in order to ensure that the finished product may be exported in order to increase the forex earnings from this sector. This initiative would also contribute to a decrease in the import of finished products from this material. Aims And Objectives This study on the promoting the export of wool and woollen products in order to encourage the local economy and national culture is undertaken in order to understand the advantages that the country enjoys as a major producer of wool and the reasons why the industry remains in its infancy even after more than half a decade of open markets and globalisation. Background Research An increase in the actual level of protection extended to wool, woollen and worsted textiles would significantly decrease the share of imports of the finished product in the country (Lloyd, 1989). The lack of efficiency in the industry can be seen not only in the low level of security afforded to the substantially large production of wool; but also in the lack of infrastructure (Ville Boyce, 2006) which would help take advantage of the easy supply of raw material to manufacture the finished textile that can be exported with huge profits (Wilcox, 2015). All efforts that are currently geared towards increase the exports of greasy wool should now be concentrated on improving the export of finished products using wool. literature review The export of greasy wool and the import of the finished product is a matter of concern for Australia (Lloyd, 1989), despite the country being the first among producers of premium quality wool across the world (Wool Producers Australia, 2016). International trade and culture are closely linked since both are highly emotional issues albeit for different reasons. While trade shapes our sense of culture; national culture exemplifies the manner in which we conduct our international trade and maintain our relationship(s) with other countries (Cowen, 2009). The inter-organisational communication is of significance in the given situation (Ville Boyce, 2006). While the make or buy decision remains ambiguous and without any logical explanation (Peng, Zhou, York, 2006); the factors that influence the decision include factors like national culture (Cowen, 2009), governmental regulations (Wool Producers Australia, 2016), product complexity (Peng, Zhou, York, 2006), lack of adequate infrastruc ture(Ville Boyce, 2006) and market distance (Peng, Zhou, York, 2006). Significance Of The Subject Despite textiles enjoying a high level of security in the country; woollen and worsted products continue to remain neglected. This is indeed a sorry situation for a country that boasts of the highest production and export of wool in its raw state, globally. The reasons for this state of neglect can be traced back to the level of protection for woollen products and their demand within the country remains low (Lloyd, 1989). The decrease in imports of the finished products would coincide with a decrease in the export of greasy wool and an increase in the exports of finished woollen textiles (Wool Producers Australia, 2016). Research Question What is the correlation between national culture and international trade, particularly with reference to the export of raw wool, the import of finished woollen and worsted fabric? What is the potential for export of the finished woollen commodities? Is there any means by which the country can tap into the huge international market of woollen products through improving its infrastruture and internal processing of wool and limiting the exports to finished goods? Gnatt Chart Assessment Milestones Decide the broad area of the Project 23-July-2016 Identify the research topic 24-July-2016 Complete the background reading and research 24-July-2016 Complete literature review 24-July-2016 Preliminary investigation, if any 01-August-2016 Analysis and evaluation of data 12-August-2016 Preparation of final report 15-August-2016 Team Charter Team purpose The team will analyse the potential for improving exports of woollen commodities rather than greasy wool in the country. Duration and Time Commitment The total project is expected to last not more than 3 weeks. The daily effort has been shown in the schedule above. All members need to dedicate an hour each day at the least for combined effort and the balance may be done individually. Scope All matters relating to the export of wool are considered. Most of the data would be from secondary sources Members Expected results The potential for exporting finished products from wool as well as an estimate on the cost involved. Resources The University Library as well as online sources. Reporting Plan A daily report of all activities during the previous day must be given by each team member at the start of the daily meeting. This would be noted by the team leader, who would be maintaining the minutes of the meeting as well as a daily report. Deliverables A project report on the impact of national culture on improving the exports of woollen products in order to increase forex earnings for the country. References Cowen, T. (2009). Creative Destruction: How Globalization Is Changing the World's Cultures. Princeton: Princeton University Press. Lloyd, P. (1989). Textiles, clothing and fibres in Australia and New Zealand. Parkville: University of Melbourne. Peng, M. W., Zhou, Y., York, A. S. (2006). Behind make or buy decisions in export strategy: A replication and extension of Trabold. Journal of World Business, 289-300. Ville, S. P., Boyce, G. a. (2006). Investing in Inter-Organisational Communication: The Melbourne Wool Brokers Association. The Melbourne Wool Brokers Association, 171-197. Wilcox, C. (2015, May 8). The National Council of Wool Selling Brokers of Australia Inc : Newsletter. Retrieved from www.elders.com.au: https://www.elders.com.au/upload/NCWSBA%20Newsletter%20150508.pdf Wool Producers Australia. (2016). Wool trade. Retrieved from www.woolproducers.com.au: https://www.woolproducers.com.au/about-us/trade/