International Business Law
This file has for main goal to analyze risk factors of Australia. We have conducted a study of legal, political, cultural and financial risks.
Australia is the 15th largest economy in the world . Australia's GDP is one of the highest of all countries and services take a major part in it with 70% of the GDP. United States of America are one of Australian's major partners and are representing the largest investor. We have seen that law of Australia is different to the others due to its common law. Australia is also a country very stable in term of politic and it is an opportunity to catch for companies. This is moreover, the country with the lowest risk of political instability rated to 9.24 .
Australia is suggesting many opportunities to enter its market for foreign companies in huge performing sectors as the aircraft industry, electrical, vehicles, pharmaceutical...
We have seen that to succeed in such a market, being present on a local level is better. One of the best ways of entering this market is to hire an agent. Another way is to have a partnership or a subsidiary working with a local distributor who already knows the market. In another hand, being present in Australia allows a company to have a secured position in a country with "lower risks" and use the country as a base to reach Asian markets more easily. This is the case for European companies for example.
In this file, we considered many options available to enter the market with partnerships, acquisitions, joint-venture or trade.
[...] In these cases, WTO was in charge of resolving the issues. It gives more credit to a country for investing on it and for Australia this is just a consequent opportunity. WIPO, World Intellectual Property Organization is again created by the United Nations and is made in order to create a protection and promote it around the world. This organization delivers different patents, conventions protecting brand names, products or trademarks. This law reinforces the protection of different countries in terms of economical factors. [...]
[...] After analyzing the country's opportunities and threats for doing business, we are going to analyze the different methods for entering the Australian market. It exist many market entry strategies as joint-venture, partnerships, acquisitions It can be also a direct exportation to a local distributor or more simply being present in the country thanks to a subsidiary. There are market opportunities which are really more concrete for precise sectors as aircraft industry. Finally, we can talk about the geographical situation of Australia which is making some issues to companies. [...]
[...] The main law is the Constitution of Australia. It is the way that Australia is directed and it builds the government of the country. To explain in few words, Australia is separated in States and each State is governed by its own jurisdiction. It consist that laws edited by the parliament and it help to take concrete decisions where the laws are themselves not précised. Common law is not rigid but it is not always the best solution to issues. [...]
[...] Conclusion Thanks to this case study, we analyzed the different risks that we have to face in Australia. Implementing a new strategy and choosing a form of business to tap on a market is very difficult and must be a reflected decision. Australia is one of the most secured countries of the world. Foreign investments are growing up and all companies are turning themselves to this country to succeed. In fact, Australia offers guaranties but it is also a plat-form, as a Hub to reach the Asian Market in terms of geographical situation. [...]
[...] Regarding to the legal risks we analyzed, there are organizations present in Australia to consider. FIRB, Foreign Investment Review Board is taking care of each foreign investment and provides general information on Australian policies and laws. In order to tap on the market, there are already known success ways. Local sales structure if required many times to succeed. It can be done with an agent or a local distributor. The methods to consider: The main forms of business to consider are: - Agent or distributor - Licensing and transfers - Joint ventures - Alliances - Subsidiaries Sole traders Policies are regulating this type of business. [...]
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