Issues in International Business

Running head: ISSUES IN INTERNATIONAL BUSINESS
Issues in international business
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1ISSUES IN INTERNATIONAL BUSINESS
Table of Contents
Introduction:...............................................................................................................................2
Discussion:.................................................................................................................................2
Recent news regarding the trade and investment in Singapore:................................................2
International relations between Singapore and Australia:.........................................................3
Identification of trade barrier imposed by Singapore on Australia:...........................................3
Evaluating the strength of banking system in Australia:...........................................................3
PESTEL analysis of Singapore:.................................................................................................4
Analysis of other emerging factors for the expansion of Cole’s business in Singapore:...........5
Summarizing and ranking of the identified risk:........................................................................6
Recommendation on the entry strategy of Coles in Singapore:.................................................7
Conclusion:................................................................................................................................8
References list:...........................................................................................................................9

2ISSUES IN INTERNATIONAL BUSINESS
Introduction:
The report is prepared to conduct an in depth research on Singapore for the expansion
of Coles business. For this purpose, the report intends to develop and propose the suitable
strafe that would provide the firm with greatest chance of success in international market.
The risk faced by the destination country that is Australia has been analyzed by developing
the risk table that ranks the risks identified. In addition to this, the PESTLE analysis of the
company has been conducted that helps in identifying various other factors relevant for the
business. The later part of report demonstrates the recommendation on the appropriate mode
of entry of Coles into Singapore.
Discussion:
Recent news regarding the trade and investment in Singapore:
The EU Singapore free trade agreement intends to virtually remove all the tariffs
between the Singapore and Australia in five years and would open up the procurement market
of the destination country. Singapore in this regard would be implementing the core labour
rights conventions and sustainable management of fisheries and forests. The investment
protection agreement would replace the bilateral agreements between the host and home
country. Furthermore, it is forecasted that the supermarket of Australia would grow to SGD
9.9 billion by 2023 and will be the third largest market for grocery in Asia with a high spend
per capita and string economy (Chiu 2018). The important channel for the ongoing store
expansion in the country is the fair price supermarket along with the strong growth in
convenience channel. It is estimated that the supermarket will be the main grocery format in
the country. Therefore, the top priority of retailers should be to grow the sales value of the
supermarket.

3ISSUES IN INTERNATIONAL BUSINESS
International relations between Singapore and Australia:
One of the most closest and comprehensive relationship of Australia is its bilateral
relationship with Australia which is based on various aspects such as education, defence,
trade and tourism and commonwealth along with the similar strategic outlook of the two
countries. These two countries signed the joint declaration on the comprehensive strategic
partnership that would deepen the existing areas of cooperation. The central pillar of
economic relationship of Australia with that of Singapore is based on Singapore Australia
free trade agreement which intends to address the commercial interest issues. The SAFTA
(Singapore Australia Free Trade Relationship) is to be upgraded under its third review that
would reflect an increasingly competitive, global and competitive business environment.
Such review would also further integrate these two economies by providing business
certainty and locking in access to the trade and investment into future (austrade.gov.au 2018).
Identification of trade barrier imposed by Singapore on Australia:
The ability of business and companies in Australia to penetrate in the Singaporean
market is affected by a range of regulatory conditions and barriers. Companies in Australia
are not able to take the full advantage of Singaporean financial service market because of the
restrictions on the operations of financial service providers of foreigners (Tsang and Yamanoi
2016). The trade barriers can be further classified as tariff and non tariff barriers
Evaluating the strength of banking system in Australia:
The financial system of Singapore is well regulated, supervised and highly developed
and the entire financial system is overseen by the monetary authority of Singapore.
Progressive and sound financial system has been established in the country over the past five
decades with the government actively engaged in the reforms and financial liberalization.
The well developed capital market of Singapore has contributed the country to become