International Trade Relations: Mechanisms, Factors, Methods, and Problems

INTERNATIONAL TRADE RELATIONS
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International Trade Relations
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International business environment
The concept of globalization has increased business operations in today’s world. It is majorly
attributed to the advancement in technology. In organizations operating as international
companies, there is usually commercial transactions between the involved countries, thereby
crossing political boundaries. It is critical, therefore, for such businesses to understand the
international business environment in which they operate (Hill 2008). Australian $ International
Holdings Limited (AIH), is an Australian international company that deals with investment. It
would, therefore, be an ideal investment company for the client of the Altinvest company. Any
global business environment can either offer significant probable returns or risks depending on
the country’s political, social, legal, and social-economic stability. AIH company is located in
Australia, but it operates in other global nations such as America, United Kingdom (UK), and
New Zealand (Statements 2009). Australia takes pride in the strong economy it has been
experiencing for a couple of years now and also the stable political environment. Its proximity to
Asian Pacific key markets as well makes the Australian a perfect place for overseas investors.

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The business environment of America, UK, and New Zealand, as well, is quite stable that makes
the AIH company keep on growing every year.
AIH recent trends (value and volume of activity)
AIH aims to offer its investors with dividends returns and also enhance their capital growth. Net
assets of AIH by 30th June 2017, was approximately $4.5M while the net asset value by 22nd
March 2018 for a wholly paid share was $ 3.06. At AIH there is well-diversified as well as
strategically balanced portfolios. Most of the obtained shareholder funds are usually invested to a
medium-term and long-term period in international Australian companies. Its investments are
facilitated by several schemes such as the Burrell World Equities (BWET), where it invested
about 56% of all its assets on June 30th, 2017. 22% was invested in Burrell Australian Equities
Trust (BAET) while 11% was invested in BSMaRT-Burrell Smallcap, Midcap and Resources
Trust (Hudson 2014). Its Dividend Reinvestment Plan allows the shareholders to acquire their
shares either in parts or full amount. AIH invests in various banks all over the world and also
operates in different industrial sectors such as energy, financials, materials, exchange funds,
health care, telecommunication, consumer staples, real estate investment funds, and managed
funds.
Mechanisms that regulate international trade
International trade is regulated by various mechanisms that ensure a fair ground for the trading
partners. For instance, World Trade Organization (WTO) guarantees stability, security, and
certainty in the trading process. WTO sets regulations that oversee business operations between
trade partners. Additionally, there is International Trade Commission (ITC) and International
Trade Commission (ITC) mechanisms that regulate trade among the partners (Caddel 2014).