Established foreign subsidiary attitudes to the environment: an Australian perspective

This article identifies the environmental factors that impact on established foreign subsidiaries operating in Australia. A survey of 356 foreign Multinational Enterprise (MNE) subsidiaries from North America, Europe and Japan operating in Australia revealed that infrastructure, agglomeration, investment location image, government support, input costs, government costs, safe environment and market size were the critical factors that impact on subsidiary attitudes to the environment in which they operate. Attitudes to the Australian environment revealed that the foreign MNE subsidiaries consider Australia to have a safe environment for investment. However MNEs subsidiaries had a negative attitude towards government costs and the degree of post investment government support being received. Discernable differences were evident in these attitudes among Japanese subsidiaries and those subsidiaries involved in manufacturing. The key considerations for Australian governments is to highlight the safe environment Australia offers, alleviate high taxes and bureaucratic hurdles for conducting business, and provide more government support post the initial investment.