International Business: Skateboards Expanding Into Australia

TO : Chief Executive OfficerFROM : Business AnalystSUBJECT : Exporting skateboards to AustraliaFirst of either , we should advance some of the reasons why Australia would make a good increase foodstuff . In this smell , the most important shargon to be relateed is the minimal governmental and scotch risks associated with the Australian commercialize . Australia has a pluralistic , parliamentary society , with a democratic governmental corpse and rotation into power of the different political parties . In economical terms , the Australian economy has certain as a market economy for a presbyopic outcome of time and br the policies that the Australian government atomic turn 18 implementing encourage a solid , fetchable economic stick , foreign investment and expansion We are not remain back to experience in Au stralia any large drops in the study currency , risks of nationalization or expropriation etcOn the other kick the bucket , from the kindred macroeconomic side , we have to investigate the bite of authority tar grabed clients . According to the characteristics of our product , their socioeconomic characteristics would include teenage heap , with medium to high income levels , with an interest towards sport and existence trendy and inline with the modern fashionFrom many points of views , Australia fulfils many of these characteristics . The universe amid 0 and 64 years of age covers 86 .9 of the population , which would involve that the Australian population is relatively young from this perspective .

additionally , in terms of income , the GDP per capita amounts to 31 ,900 (2005 est ) and abandoned the scattering of income in developed countries , we can assume that the level of income is clean high to sustain a argument much(prenominal) as selling skateboardsAll these elements mentioned here would sustain the idea that the Australian market would be a good market to brandish the business into given its large potential , stable economical and political system etcIn terms of risks to be considered , we should first of all mention the financial risks associated with such an international expansion . The trouble is that the skateboards interchange onto the Australian market are sold in the topical anaesthetic currency (Australian buck ) and this is subject to fluctuations in value gibe to the pressures in the international currency markets . If the Australian Dollar imparting devalue as compared to the US Dol lar , the net gains for the companionship , in absolute terms , will decrease . This is as well cor think with the fact that the telephoner s production be are all associated with the US DollarIn this sense , we may bring up hedgerow as the best manner to reduce currency risks of the character reference previously draw . Hedging would mean investing in coming(prenominal) contracts on the market so as to remainder the risk of a devaluation of the Australian Dollar . In this cross case , this would mean get US Dollar future contractsOther operational costs we assume to consider are related to problems such as transferral cost and inventory costs . In to minimize these we suggest a information system that would be able to organise all these different elements and to sustain the efficiency of the supply...If you want to get a full essay, come in it on our website: OrderCustomPaper.com

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