International Accounting: Risks, Mitigation, and Government Grants

This report delves into the complexities of international accounting, focusing on the key risks associated with overseas operations. It identifies political, legal, operating, and currency risks that companies like Crown Resorts Casino face. The report then explores the impact of these risks on international companies, highlighting strategies like hedging and political risk insurance to mitigate potential losses. Furthermore, it outlines the support provided by the Australian government, specifically through Austrade and the Export Market Development Grant (EMDG), to assist businesses in expanding their operations globally. The report emphasizes the importance of understanding these risks and leveraging available resources to ensure successful international ventures, referencing relevant literature on risk management and international trade.

INTERNATIONAL
ACCOUNTING

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 risks 4
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
promotion opportunities around the world related to money, credit, allowed innovation,
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.
There will be opportunities on a regular basis as you enter another market, 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 values in 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.

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.
Provides and reimburses trade promotion costs to qualified small and medium-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.
Export Market Development Grants (EMDG), 2020; Available online through:
<https://www.austrade.gov.au/Australian/Export/Export-Grants>
TradeStart, 2020; Available online through: https://www.austrade.gov.au/Australian/How-
Austrade-can-help/Trade-services/TradeStart
COST OF EXPORTING GOODS, 2020; Available online through:
https://www.abf.gov.au/importing-exporting-and-manufacturing/exporting/duty-drawback-
scheme