A Report On The Biggest Foreign Investment - 1371 Words

This essay is the analysis of one of the biggest foreign investment in Australia in mining sector. In analysing the case, essay explains how the relationship between government and business can be seen in this investment deal. This investment deal has gained much attention in Australia as it may have substantial environmental effects. This investment will have the sole control of a foreign company and will have big environmental effects, so has come under scanner. The first part of the essay explains the overview of the case and second part of the essay discusses the theoretical concepts that can be associated with the case. The recent investment of Adani Group (An Indian Energy Company) in Australian mining sector will have the control†¦show more content†¦The business-government relationship has three major elements: competition, cooperation, and Coopertition. These elements can be seen from the game theory (study of strategic decision making) perspectives where the effects of these elements on each other can be improved. The relationship between government and business is highly dependent on how the government can provide the stable set of rules for business, so business can adapt to the changing conditions and can act within the rules. For example the competition paradigm of business-government relationship can be seen in financial market where government does not allow the merger of four major banks of Australia (Chaudhri, Samson Kerin, 2000). In the era of globalization where business are competing to attain the bottom line, it has become very important to provide business an environment of set rules and regulation so they can operate in longer term and the cost of adapting the new rules is not very high. If government changes the business rules frequently, it makes the country an undesirable destination for companies (Hampson Morgan, 1998). Adani will have the control over the mine for next sixty years, which is good attempt by government to provide an environment to the company to