2.1Economic Environment 2.1.1 Economic environment definition The economy pertains to the income, expenditures and resources that affect the cost of running a business or household, such as, GDP, labor force and unemployment rate (Kerin, 2008, p74). 2.1.2. Economic environment facts and impacts Netherlands is a small, wealthy trading nation. With the social culture facts in Netherlands, the nation GDP is ranked 23rd at purchasing power parity. Household's income is at an average of 45,820 Euros (EUR). There are about 2.5% household got lowest income and with 10% highest is around 22.9% in the whole population (Central Intelligence Agency, 2012). Therefore, instead of targeting all the market, Australia should focus on those 22.9% high income people (3.08 million people) to direct their marketing activities as they have stronger purchasing power. Hence, unemployment rate in 2011 is 5.2% compared to 2010, it decreased 0.3% (Central Intelligence Agency, 2012). With this fact, the people got job in Netherlands more than before also the average of the income will increase. It will have certain spending power and for Australia business got chances to create the market in Netherlands that will make the profit. Furthermore, Australia business needs to think about the high foreign exchange for the business with the 0.7107 Euros (EUR) per US dollar in 2011(Central Intelligence Agency, 2012). When the business promotes the products to Netherlands, needs to think about the price that with the high exchange to Australia dollar. 2.2 Social culture 2.2.1 Social culture definition The social forces of the environment include the demographic characteristics of the population such as ethnic group, language and its value. Changes in these forces can have a dramatic impact on marketing strategy (Kerin, 2008, p63). 2.2.2 Social culture facts and impacts Social culture is necessary for the business that develops in a foreign country. Australia ha