1. What are some issues facing Australia? What is the climate for doing business in Australia today ?

Australia’s economy ranks among the 20 largest in the world, with a per capita GDP on par with the four dominant West European economies.
Business in Australia is conducted in a transparent, well regulated and politically stable environment. The judiciary is open, independent and accessible. The climate is superb and living standards are high.
The 2011 World Bank Doing Business report judged Australia to be the second most straightforward and affordable country to start up a business and in the top 10 countries in terms of overall ease of doing business.
The Australian labour force is highly educated with a strong multicultural background. Approximately 42% of Australia’s working age population has a university degree, diploma or trade qualification. Of the approximately 21 million people in Australia, more than 1.4 million are fluent in a major Asian language and more than 1.2 million are fluent in a major European language.
The Australian Government’s trade policy combines multilateral, regional and bilateral approaches. Australia pursues every opportunity to open up global markets for exporters and to encourage investment flows across all sectors. As part of this commitment, the Australian Government has negotiated special access for Australian suppliers of goods and services to key export markets through free trade agreements (FTAs). The results of this policy have become particularly apparent in recent years, with Australia making significant advances in its pursuit to enhance trade by completing FTAs with ASEAN, New Zealand, the USA, Thailand and Singapore and other significant agreements with China, Malaysia and Japan

2.What type of organizational structure arrangement is the MNC going to use in setting up its Australian operation ?

Because the country is so large and the population spread along the coast and to Perth in the west and because of the free spirit cultural values of the Aussies the home office of an MNC feels compelled to give the manager of Australian operations full control over decision making.This manager will have a small number of senior level managers brought from the MNC's original country, but the rest of the personnel will be hired locally.The office will be given sales and profit goals, but specific implementation of strategy will be left to the manager and his or her key subordinates onsite.

3.Can this MNC benefit from any of the new organizational arrangements , such as joint venture , the Japanese concept of keiretsu , or electronic net works ?

The experience of the people being sent to Australia will be particularly helpful in developing market. The experience and knowledge will be used to garner a commanding share of this expanding market.

4.Will this operation be basically centralized or decentralized ?
For sure it will be centralized because it relies on one individual to make decisions and provide direction for the company.