Business in Australia

Résumé du document

This study is particularly important in our actual context because of the financial and economic crisis that is changing a lot of things in the environment. In fact it is essential to be aware of the different in politic, cultural, legal risks when a company wants to do business in a specific country. In this case, we decided to choose to analyze Australia. Besides, in this case we are going to talk and discuss about all the strategies for a company which wants to set up in this country, but also all the risks that it involves, because international business law is really specific from a country to another one.

Managers today have a problem. They know their companies must grow. But growth is hard, especially given today's economic environment where investment capital is difficult to come by and firms are reluctant to take risks. They have to do business abroad, find other revenue sources and that is why they have to consider the law enrolled in the different countries. As the result, an analysis of all the country's environment is crucial before entering a country to do business. It is not so easy to enter a market in another country; companies have to adapt their products and services, their policy and even sometimes their framework in order to have the right to do business in this country.

Extraits

[...] Analysis of Risk Factors in Australia 4 Legal Risks 1 Does the country have a common law or civil law system? Obviously, Australia has a common law based on the principal belief in the rule of law, justice and the independence of the judiciary as the Australian legal system. Build from the English common law, the main Australian law is called the Constitution of Australia and regulates the government. In other words, the country is divided in 6 states, all of them are governed by their own jurisdiction. [...]

[...] These attitudes are assumed to reflect the goals and philosophies of the company with respect to international operation and to lead the different management strategies and planning procedures with the regards to international operation: Ethnocentrism (home country orientation) Polycentrism (host country orientation) Regiocentrism regional orientation) Geocentrism world orientation) In fact, for the case of Australia there are no really language barriers because the official language is English. This is due to an old colonization of the British. Besides, the relationship with the United States reinforces the language in this country. The environment is favorable to do business and to negotiate, without cultural changes Does the country have a reputation for corruption and bribery? Concerning corruption and bribery we have seen previously that Australia is very stable politically. As we noticed in the classification of political instability risks in 2010, Australia represents the lowest risk. [...]

[...] The EU is the first foreign investor, at the level of in front of the United States and Japan.[8] Concerning the WTO (World Trade Organization), Australia is a member since January, 1st 1995. As we know, WTO is an organization helping the exchanges of goods and services between countries. This a key factor of success for Australia in order to do business abroad. It a primordial factor of deleting or reducing the main taxes, tariffs barriers regulating different countries to export. It helps the trade deals and is made also in order to protect each country's interests and resolve issues happening between countries from respective countries. [...]

[...] We can observe that Australia has a good position in order to do business. Obviously, some elements have to be taking in consideration before arriving in a foreign country, the culture is an important one. The culture is really important: understand the people, their habits, their culture and their religions can be the key of the success. International business is not an exception to these rules. International managers are asking themselves how they can cope with the new scope of operation today, and why not they can apply domestic strategies to international markets. [...]

[...] Australia is also a member of the WTO (World Trade Organization) since 1995. This membership represents a real asset because the WTO allows the reduction of a lot of tariff barriers and taxes, it is an advantage for the exportation of goods and services in other countries. The WTO helps Australia in terms of business and trade, the aim is also to protect each country member of the WTO from any risks, their interests and all the problems related to international trade. [...]