This article discusses the key risks associated with overseas operations and their impact on international companies. It also provides ways to avoid these risks. The Australian government's support in the form of key grants to companies is also mentioned.
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INTERNATIONAL ACCOUNTING
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Table of Contents a) Key risks associated with overseas operations............................................................................3 b) Impact of overseas operational risks on international companies and ways to avoid such risks4 c) Support given by Australian government in the form of key grants to companies.....................5 References........................................................................................................................................6
a) Key risks associated with overseas operations The Australian government agreement which is based on liberal democratic values is based on strict tolerance, the right to free speech and communication, and the status of the law. Australia has political, legal and administrative practices comparable to those of the UK, the US and other liberal voting-based systems. Organizations with global exchanges need to manage business opportunities in their neighborhood, but in addition there are a number of business promotionopportunitiesaroundtheworldrelatedtomoney,credit,allowedinnovation, transportation, peers and this is just the beginning. . These risks can undermine global business development, but accessible tools exist to limit the impact of these risks on business. Therewillbeopportunitiesonaregularbasisasyouenteranothermarket,but differentiating these risks upfront and establishing measures to address them can help limit their impact on performance for overseas businesses. Some of the key risks that Crown Resorts Casino with overseas operations are exposed to are as follows: Political Risks: Uncertain political world can hinder business disruption in a number of ways. Exchange bans could affect product transport, common war or political malice could affect the safety of workers and supporters. Political tensions can lead to lack of pay, seizure of property and resources, and barriers to revenue movement. Legal risks: Legal requirements and cycles can change fundamentally across a number of business sectors, so direct your research and find legitimate guidance in understanding your legal situation. Some common law enforcement areas include neighbor contract law, IP patent registration and pre-requisites, risk laws, negotiated objective measures, and operational welfare and safety laws. Operating risks: Exporters need to feel comfortable with the climate of new sectors of work, as this can be completely different from Australia’s working conditions. Some important things that need to be paid special attention to are the mechanical and working relationship strategies, allowing for import regulations and pre-requisites. Currency risks:This risk is associated with trading in different currencies between two companies of different country; due to fluctuation in exchange rate and impact on international transaction. Company can get on the safe side by picking up valuesin Australian dollars only or
by contacting an anonymous trading office that will allow you to get exchange rates and import a fence from the introduction your money. Unknown business risk usually relates to credits and debts owed for benefits that are or will soon be in power. Unusual exchange rates are in constant flux, so groups of foreign-created facilities may be forced to replace at lower-than-expected rates. b) Impact of overseas operational risks on international companies and ways to avoid such risks At the stage where an association chooses to participate in global funding exercises, it takes more risks with opportunities. The primary risks associated with organizations participating in global resources include unfamiliar business risks and political risks. From time to time, these problems can make it difficult for organizations to maintain a stable and stable income. In this article, we will explore ways organizations can reduce the impact of the risks they face by working together globally. The impact of foreign exchange risk could be in the form of huge losses to the company due to fluctuations in the rate of currencies. While the impact of political risk could be in the form of rejecting all business contracts between two Australia and other foreign country due to some political dispute or taking the deal as abolition of law. Some of the ways by which these risks could be mitigated are as follows: 1.Hedging:It is process in which company could mitigate their risks by adopting different techniques such as future and forward purchasing options. In this method, risk is minimized by making contract between two international companies at the time of making transaction. In this contract, a fixed currency rate based on past performance is agreed by both parties. Hedging doesn’t guarantee for zero risk of losses but it helps in minimizing the overall risk. 2.Political Risk Insurance: Companies may also choose to obtain political risk protection to protect their assets and valuable claims from specific government activity. Organizations around the world often outline in their 10,000 annual filings with the U.S. Securities and Exchange Commission (SEC) the moves they will make to reduce the political risk they face in foreign countries.
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Protection from political threats encourages these organizations to form and develop their organizations around the world even in strange or precarious working conditions. Security groups can buy insurance that covers insurance in the event of war, psychological violence, employment problems, a shortage of flexibility and trade restrictions. c) Support given by Australian government in the form of key grants to companies Austrade provides assistance to Australian organizations willing to trade overseas. This help invokes guidelines to work together in global business sectors, assist in global market selection and differentiate validation of relevant connections around the world. Export Market Development Grant (EMDG), administered by Austrade, provide budget assistance on demand and customary exports. The plan strengthens a wide range of initiatives and initiatives, including the travel industry and the price of innovation and defense capability. Providesandreimbursestradepromotioncoststoqualifiedsmallandmedium-sized organizations. Fare Finance Australia provides financial assistance to help Australian exporters overcome budgetary constraints as they expand their business overseas. Fare Finance Australia is the administration's tariff credit agency. They help organizations win, fund and ensure they make profits in exchange or overseas. They work directly with exporters and their banks to provide promotions, securities, bonds and guarantees that can be used to address export problems. Pay up to $ 150,000 depending on half the cost of certified tariff advertising, under the trade rule on promoting Australian items, measures, administrations, skills and brands. The main problem can include guaranteed expenses for the last 2 years related to cash. The plan is low- funded at $ 150 million and the longest premium is tied closer to $ 50k.
References Kwak, D.W., Rodrigues, V.S., Mason, R., Pettit, S. and Beresford, A., 2018. Risk interaction identification in international supply chain logistics.International Journal of Operations & Production Management. Gheasi, M. and Nijkamp, P., 2017. A brief overview of international migration motives and impacts, with specific reference to FDI.Economies,5(3), p.31. Williams, O. and Chase, H., 2019. Strategic Market Share Analysis of Opportunities and Risks for Australian Pharmaceutical Companies.Journal of Strategic Management,3(4), pp.33- 44. ExportMarketDevelopmentGrants(EMDG),2020;Availableonlinethrough: <https://www.austrade.gov.au/Australian/Export/Export-Grants> TradeStart,2020;Availableonlinethrough:https://www.austrade.gov.au/Australian/How- Austrade-can-help/Trade-services/TradeStart COSTOFEXPORTINGGOODS,2020;Availableonlinethrough: https://www.abf.gov.au/importing-exporting-and-manufacturing/exporting/duty-drawback- scheme