Challenges and Considerations for Positive Social Impact in Trading Across Borders

This report discusses the challenges that companies face when trading across borders, including international company structure, foreign laws and regulations, international accounting, cost calculation and global pricing strategy, universal payment methods, currency rates, language and cultural differences, political risks, worldwide environmental issues, finding low-cost payment solutions, selecting the right target market, and supply chain management and labor risk. Additionally, the report outlines considerations for creating a positive social impact, such as understanding the unique assets of the company, generating social impact and improving growth, assigning adequate resources to social impact programs, setting goals and measuring outcomes, and using social media to push CSR.

Business Project

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
B. Various challenges the company need to consider when trading across the borders..............3
C. Considerations that the company need to consider when trying to create positive social
impact...........................................................................................................................................7
PART 2..........................................................................................................................................10
Considering the Theoretical tools which enhances the business of the company:....................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Business projects are the concepts which helps the business to achieve their business
objectives and to manage the strategy of the business strategy. There are many times of business
projects that are internal projects, administrative projects or functional project. The business
project should have an executive summary and proper body and conclusion which helps to make
the effective project for the student. There must be proper management of the business projects
because it helps the company to know its goals and objectives. The project manager must check
and review the project of the company in order to maintain the productivity and profitability.
These projects are the collections of different tasks. The main characteristics of the projects is
that it always has some uniqueness in preparing for task. For every specific task a different
project is prepared and the person must follow that pattern written in the task. It makes easier for
the person to do that project by following the pattern of the task. There should be quality of
project made by the organization. Project management is the wider concept in order to mange the
projects of the business. These are the actions which helps to use the proper resources in order to
develop and solve the need in order to get financial gain. Rio Tinto is the multinational company
situated in United Kingdom. It basically produces iron ore, diamonds, gold and uranium. This
company was founded in 1873 which active in mining. It is the second largest company doing
business of metals and mining corporation. The company has done merger and acquisition and
has grown in the market. There are more than 45,000 employees in the organization in the year
2020. It is an Australian company having its headquarters in Melbourne. This report will outline
the various challenges that the company should consider while trading across the borders.
Further this report shows the considerations that should be considered by the company while
trying to create positive social impact on the business organizations. This report also shows the
appropriate theoretical tools by considering that what the company should consider enhancing
their business.
PART 1
B. Various challenges the company need to consider when trading across the borders
Trading of goods across the border refers to process of movement of goods across the
borders. Its is very important for the countries to trade the goods and services across the world.
The movement of goods are done because it helps to trade the goods in those areas which gives
more benefit to the company (Asongu and Odhiambo, 2019). Various types of goods are traded

to the another countries in order to gain more profit. The company only trade the goods in those
countries where the transportation cost is cheaper. Sometimes the organization do this trade for
the tax evasion which is illegal for the company to do so. Trading makes the organization to
increase its reputation and profitability by trading in the international market. The company must
consider the various challenges while trading across the borders are as follows:
1. International Company Structure: The international structure of the company
must be very proper and specific. If the company want to expand its business
across the borders than they must be ready for the challenges to be followed by
them in trading the goods. Rio Tinto is the best effective multinational company
having proper company structure. It has a diverse global presence, so the
company must consider this challenge when trading across the borders. The
company structure in the international market is very important.
2. Foreign Laws and Regulations: As growing and trading in different countries the
company must follow the rules and regulations of that country. The company
must ensure the local laws and regulations of the country where it is trading.
Focusing on the legal requirements of the business is the main of the company in
order to successful in the international business (Chang, Iakovou and Shi, 2020).
It is the great challenge that the organization must consider in order to trade
globally and gain global advantage. The organization must also consider the legal
requirements of the countries by focusing on the tax implications to the trading
laws the company must focus on the laws and regulations.
3. International Accounting: The accounting of the business in doing the
international business is the most crucial and important thing that the company
must consider in order to trade globally. Mitigating to the risk the company can
increase its revenue while trading across the borders. The cited organization must
have good accounting policies in order to trade in the global market. The main
aim of the company should be focusing on the tax efficiency while making the
international accounts of the business. In order to maintain the good and proper
accounts the company must not do tax evasion.
4. Cost calculation and global pricing strategy: Deciding of price of the products
and selling that product in the international market is the biggest challenge for the

company. The organization must decide the best price for their products in order
to earn good profits from selling that products. The cost must include the cost of
production, labour, marketing, distribution and also must include the margin that
helps the organization to earn god profit. The company must focus on this
challenge when trading across the borders. If the company is launching any new
product than they must use the best strategies in order to earn the profit from the
new product.
5. Universal Payment methods: As growing in the technology the payment system
become easier for the company in trading in the global market. The company
must accept the different payment methods in order to receive the payment from
the creditors. If the organization is not using different payment methods than they
will not able to receive the payments from the traders with whom they are trading.
Sometimes it creates the risk because online payment may creates problem in
receiving the big amount.
6. Currency rates: It is one of the important challenge that the company must
consider in order to trade across the borders. Checking the exchange rates of the
countries is the main strategy for trading globally (Bernard and Moxnes, 2018). It
decides the profitability of the company by monitoring the exchange rates of the
countries. Rio Tinto must check the currency or exchange rates of those countries
where they are trading in order to earn good profit. The organization must
consider the fluctuating and unpredictable exchange rates which helps the
company to mitigate the future risk.
7. Language and cultural differences: It is very important for the company to think
that they are the local seller while selling the products in the different countries.
There must be proper and effective communication should be done by the
company in order to survive in the global market. The cross-culture environment
and language skills are the core aspects of the company must consider while
trading across the borders. The organization must focus on the cultural differences
of the different countries where they are trading and must sell their product
according to that. The communication must be verbal with the traders, as non-
verbal communication may break the deals with the traders.

8. Political risks: It is the greater challenge that every company must focus on while
trading across the borders (Challenges Faced in E-Commerce Cross Borders
trade and How To Overcome Them, 2021). If the company is emerging with
global market than they must follow the legal requirement of that particular
country. Managing of the political risk is the greater aspect so the company must
consider this factor while trading in different countries. There are many issues
related to the policies and practices of different countries while emerging in the
global market. Growing in the economic nationalism in the global market is very
broad concept in doing the international business.
9. Worldwide environmental issues: The risk related to the environment and change
in the climate are the key factors which may affect the products of the company
while trading in the international market or across the borders. The organization
must focus on the environmental factors while trading in the global market. It can
create and develop the good environmental sustainable models for their business.
By implementing those models in their business the organization can compete in
the global market. The company must be aware about every country
environmental issues and regulations which may affect the growth of the
company.
10. Finding low cost payment solution: The company must sell its products and
services which cost low to the company. They must select those countries where
the transportation cost is low as compared to the other countries in the world. If
the organization is thinking of selling its products in global market they can use
the virtual bank account in order to maintain the cost payment system while
trading across the borders. By receiving the amount from the global market the
company can withdraw that amount from the bank in its local currency. Trading
across the borders can be the leap point for the company to earn more profit.
11. Selecting the right target market: In order to trade in the international market the
company must first choose the right market. It must choose those markets which
will be cheaper for the company to trade with. The company must focus on the
cost like product cost, marketing cost, distribution cost etc. By focusing on these

cost than the cited organization decide the market which will able to make their
product profitable in those markets.
12. Supply chain management and labour risk: When the company has to sell its
products across the border the company may face this challenge (Rodríguez‐Rosa,
Gallego‐Álvarez and Galindo‐Villardón, 2019). The long supply chain of the
company makes the trading complex which would result in decrease in the
reputation of the firm. For growing in the global market the company must have
proper and adequate labours in order to produce the best products. The cited
organization must focus on this challenge and should have proper supply chain
management and have good labour which increases the productivity in order to
increase the trade in the global market.
C. Considerations that the company need to consider when trying to create positive social impact
Social impact is a broad concept that helps the business on individual or on communities
terms. The impact on the businesses related to social aspects may affect the every level of the
company. It is basically related to the employment issues which are good working conditions,
hiring the good employees and growing their career and paying the fair remuneration to the
employees (Kiani, Nazari and Shahbazpour, 2019). It also includes that how the organization is
interacting with the communities in which they are operating. The organization must have good
social impact which makes their employees encouraged and motivated. Having positive social
impact ensures the company to have good beliefs and values, the company can tackle with the
problems, the company must do social good for the right reasons and company must also ensure
that this social impact has a great impact on the profitability of the business. The social impact is
the integral part which helps the company in having the growth strategies, cultures and values.
There are some considerations which the company must consider in trying to create a positive
impact which are as follows:
1. Understand the unique assets of the company: The company must first identify
the unique assets of the company. By identifying the best assets it makes the
company to increase its productivity. The cited organization can train and develop
their employees in order to have good human resources in the company. For
example, the company can launch the new social impact strategy after considering
the experience and skills of their employees and making their employees the

unique assets of the company. This will help the employees of the company to get
motivated by having the proper training which enhances their knowledge in doing
the work of the organization. By making the employees the best and unique assets
it encourages the employees and by this company can create the positive social
impact on its business.
2. Generate social impact and improve growth of the company: Generating and
fulfilling the social responsibility of the company is as hard as generating the
more profit in the business. The cited organization must have the sustainable
profit while creating a positive social impact on the business. This helps the
company to improves its growth in the competitive market. The company can do
mining by focusing on the environment which makes the organization to grow in
the market. The company can increase its growth by selling its products at the
affordable prices. The organization can also support the non-profit organization in
order to create positive social impact on the business. It should generate the social
impact and promotes the growth of the organization simultaneously.
3. Assign adequate resources to social impact programmes: If the company is
focusing on creating the social impact programmes, the company must assign the
adequate resources to the corporate social responsibility activities. The employees
of the company should be sure and focused related to the CSR activities. By
focusing on the activities it makes the company to have successful execution of
social impact programmes (Rawhouser, Cummings and Newbert, 2019). There
should be team work in order to develop and achieve the goals of the
organization. If the company is more focused on the brand and quality than they
must rely on the marketing team for creating the positive social impact on the
organization. They should place a team which must be responsible for executing
the task related to social responsibility.
4. Set the goal and measure its outcomes: The company must set the goals for
doing the social impacts programmes as same as they set goal for doing the
business activity. This set goals helps the company to be more focused on the set
plans and programmes and achieve the planned goal of the company. The cited
organization must set the goals in order to have the great and positive impact of

the social programmes on the business activity. The organization must check and
measure the success of the social impact programmes on the continuous basis
which makes the organization to know about on which strategy the company
should focus more. The company can use the objectives and key results system to
check the performance of the social impact programme and its impact on the
company's goal.
5. Company can use social media to push CSR: As increase in the technology, the
digital media is becoming very popular and useable to the people. It makes the
direct link between the organization and its customers (6 Tips for Your Business
to Make a Strong Social Impact, 2021). The organization can use different
platforms of the social media which helps the company to share the initiatives of
the corporate social responsibility. By integrating the social responsibilities with
the digital media, the cited organization can increase towards the sustainability
and it can enhance the value of the products of the company. It can promote the
corporate social responsibilities activities by using the social media platforms and
by this they can attract the more customers towards their product.
6. Company should celebrate the success: Positive social impact programmes gives
the company great satisfaction. If the company has achieved the social
responsibilities, this can have the positive impression of the company on the
customers from the different areas. After earning the good profit the organization
should celebrate their success and then take initiative in the corporate social
responsibilities activities. The organization should try to create a positive social
impact that makes the company to utilize the assets effectively. It also helps the
company to analyse its long-term goals in order to maintain the brands of the
products. The company should get the positive impact from the customers side
and from other individuals too.
7. Company can create social impact committee: The company must create a
committee related to the positive social impact which is basically called social
impact committee (Appel and et.al., 2020). The members of the committee
depends upon the size of the organization. Basically there are five to eight people
in the committee which is consisted of the top and mid-level management and

some people of the company who can handle the activities related to social
impact. The council of the committee will help the committee to serve the
feedback from the customers and from employees too. The organization can
create this committee in order to create the positive social impact on the business
activities. The council of the organization should align with the social impact in
order to survive in the competitive market.
8. Empower the employees:While developing relationships with the external
environment, the company must also work with the management team, human
resource team, legal counsel of the company and other individuals which creates
the new policies which empower employees to work on the activities. The
organization must empower their employees in their work which makes them to
be more effective in their work and also focus on the CSR activities of the
company. The employees of the organization must work with the legal counsel
and human resource management which helps them to be more passionate
towards their work and society. The company must consider this in order to create
a positive social impact.
By considering the above factors the organization can create positive social impact. This
helps the company to have a good supply chain management. By having the positive impact it
increases the company's values by fulfilling the responsibilities related to the society. In order to
have a good impact on the organization has to be more focused on their work and should ensure
the there must not be lack of resources to take the initiatives in the corporate social
responsibility. The organization must consider the unique assets which makes the company to
have a great and positive social impact. This makes the company to increase its profit and
maintain reputation in external environment.
PART 2
Considering the Theoretical tools which enhances the business of the company:
Rio Tinto is the world second largest mining and metals multinational corporation
producing the iron ore, copper, gold and uranium, titanium. Various theoretical tools being used
by Rio Tinto for enhancing their business includes ;
 Social media management and mobile marketing tools: These tools are used by the
Rio Tinto, nowadays the digital connectivity has been defining about how the worlds has

adapted the digital communication tools and also helps in upgrading the traditional ways
of working. Social media marketing and the mobile marketing tools will help in
marketing globally. (Elgazzar, El-Shahawy, and Senousy, 2022). This gives the long-
lasting effects on the future transport and working of the company.
 Digital transformation and technology tools : In recent times it has seen that the rapid
digitalization of the work will boost the medium term global economic productivity and
the growth. And increased online focus helps to accelerate on the wealth towards the
global digital platforms. In addition, the development and the cost reduction technologies
is targetting the building back better and also advancing the greenery. Which promises to
give the global energy and potentially the positive future climatic outcomes. In mining
sector the advanced technology plays an important role in addressing the productivity
growth and the challenges. (Di Vaio and et.al., 2021). This is the core element for Rio
Tinto which generally focusses for the best solution and enhances the business through
the partnerships with the technology producers and across the value chains.
Safety, business integrity, health, and the green house emission tools : These tools has
been adopted by the Rio Tinto for sustainably development in the risk management and
improving the opportunities for safety, integration and green house emission.
 The capital economic tools: Rio Tinto manages the liquidity and financing structure of
the enterprise for sensitively analysing the tools. Tool monitors and determine the
appropriate financial requirement. The company has used these tools by ensuring the
treasury policy which outlines the principles and the management practices
(Sheremetyeva and et.al., 2021). These also helps in capital allocation process supported
by the investment committee.
 Equipment management /maintenance tools : This tools is being used by the company
manager in managing the quality and equipments. The tools help to maintain the low cost
production, and provides the profitable commodity through the price cycles. Furthermore,
helps to diverse the portfolios of the commodities globally, and also allows marketing
facing the sales, marketing and trading the resource unit in the groups.
 Quality control and inspection tools : The company is hiring the attractive and best
people for managing the quality and inspection of the products. These tools help in
investing in the leadership and talent management. Also, maintaining the quality of the

products and doing inspection in the safe working environment which is performed by
the skilled member and Which helps in enhancing the business in the broader aspects.
 Using strategic partnership tools: These tools which helps Rio Tinto in establishing the
marketing positioning the company uses the strategic tools which helps them to engage in
the partnership and also explore the ways to improve the environmental performance,
strategic partnership allows in actively participating in the governance structures which
promotes the joint ventures, also align the company with the strategic policy and the
group policies.
 Smart innovation tools: Rio Tinto uses the tools of smart innovation and launching the
valuable metals from mining of the waste and creating the new products from the waste.
These tools help the company to create the sustainable and useful products and helps the
customer to reach the sustainable goals. A critical mineral is used to extract the mineral
which is being used in the clean technologies from the wastage of rocks (Vandenbrande
2021). The company manager has also innovated the for health and safety programme the
Waipa bauxite team, has designed the custom-made mechanical arm, which helps to open
and close the tailing of valves, this innovation resulted in reducing the risk injuries. These
all tools will help the managers of the Rio Tinto for enhancing their business to its full
potential.
CONCLUSION
From the project report it can be concluded that the business projects must be the
executive summary with proper body and conclusions. Projects mainly are the functional,
administrative, and the internal projects. The project has the uniqueness in making. The
multinational company Rio Tinto operating in the metals and mining operations which produces
diamonds, iron ore, uranium. The trading challenges being considered by the Rio Tinto includes
the international company structure, foreign laws and regulations, international accounting, cost
calculations and pricing strategy, universal payment methods, currency rates, language and
cultural differences, political risks, worldwide environmental issues, finding low cost payment
solutions, selecting the right target market and supply chain management and the labour risks,
After considering the challenges faced in trading will help the company in finding the proper
structure in international market, also provides the help for tax efficiency, also helps to analyse
the fluctuating currency rates and the unpredictable exchange rates for minimizing the future

risks, the political issues being identifies for growing in the economic environment. After
considering the various positive social impacts the company must understand and identify the
unique assets of the company, the company should also set the goals, empowering the
employees, generating the social impact and improving the growth of the company, manager
must use the social media to push CSR and it should also assign the adequate resources for
impacting the social programmes.
The theoretical tools used by the Rio Tinto for enhancing their business includes Social
media management and mobile marketing tools, helps in marketing globally and upgrading the
traditional ways of working which gives the long- lasting effects on the future transport and
working of the company; Digital transformation and technology tools increases the online focus
which helps to accelerate on the wealth towards the global digital platforms and also helps the
Rio business through the partnerships with the technology producers and the value chains; The
capital economic tools monitors and determine the appropriate financial requirement. Further
more the Equipment management /maintenance tools helps to maintain the low cost production,
and provides the profitable commodity through the price cycles for the business; the innovation
and strategic partnership tool will help the company and allows in actively participating in the
governance structures which promotes the joint ventures, also align the company with the
strategic policies.

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Online
6 Tips for Your Business to Make a Strong Social Impact. 2021. [Online]. Available through:
<https://www.smallbizdaily.com/business-make-strong-social-impact-programs/>
Challenges Faced in E-Commerce Cross Borders trade and How To Overcome Them. 2021.
[Online]. Available through: <https://www.shiprocket.in/blog/cross-border-trade-
challenges/>