GLC8AL LINkS

Apprec|at|on an upward movemenL of Lhe AusLrallan dollar (or any currency) agalnsL anoLher
currency
8|cu|tura| able Lo appreclaLe and undersLand Lhe buslness pracLlces and cusLoms ln a hosL counLry
and speak Lhe language of boLh home and hosL counLry
Cu|tura| d|vers|ty Lhe mulLlLude of lndlvldual dlfferences LhaL exlsL among people
Deprec|at|on a downward movemenL of Lhe AusLrallan dollar (or any currency) agalnsL anoLher
currency
Lcommerce Lhe buylng and selllng of goods and servlces vla Lhe lnLerneL
Lqu|t|es (shares) ownershlp enLlLlemenLs ln a company
Lta||er goods and servlces sold Lo anoLher counLry (le amazoncom)
Iore|gn a|d flnanclal and Lechnlcal asslsLance by governmenL and nongovernmenL (prlvaLe)
organlsaLlons from developed (hlgh lncome) naLlons Lo developlng (low lncome) naLlons
Iore|gn exchange rate Lhe raLlo of one currency Lo anoLher lL Lells how much a unlL of one currency
ls worLh ln Lerms of anoLher
G|oba||sat|on a Lrend LhaL sees people goods money and ldeas movlng around Lhe world fasLer
and more cheaply Lhan before
Imports goods and servlces boughL from anoLher counLry
Inte||ectua| property properLy LhaL ls creaLed by an lndlvldual's lnLellecL a song poem novel eLc
Internat|ona| trade Lhe buylng and selllng of goods and servlces beLween naLlons
Labour standards Lhose condlLlons LhaL affecL a buslness's employees or Lhose of lLs suppllers
subconLracLors or oLhers ln Lhe producLlon chaln
Managed (|nvestment) fund money from a large number of smaller lnvesLors ls pooled LogeLher
and managed as one large lnvesLmenL porLfollo by a professlonal lnvesLmenL manager
o||t|ca| r|sk any pollLlcal evenL whlch resulLs ln a drasLlc change Lo Lhe counLry's buslness
envlronmenL and whlch ulLlmaLely has a negaLlve lmpacL on buslness operaLlons and proflL
Subs|dary a company conLrolled by anoLher company
1ransnat|ona| (mu|t|nat|ona|) corporat|on (1NC) a large buslness organlsaLlon LhaL has a home base
ln one counLry and operaLes parLlally owned or wholly owned buslnesses ln oLher counLrles


DNI1 81 1he g|oba| consumer
ourclng producLs lnLernaLlonally
lmproved Lechnologles and communlcaLlons have changed how consumers shop eople wlll also
browse producLs on Lhe lnLerneL llke a caLalogue
1rends Lowards a global markeL
1he developmenL of mass communlcaLlons has lncreased Lhe unlformlLy of consumers around Lhe
world 1he same producLs are dlsLrlbuLed around Lhe globe
urchaslng producLs lnLernaLlonally onllne shopplng
4 commerce (onllne shopplng) has become Lhe mosL commonly used meLhod of
purchaslng producLs from overseas
4 1he lnLerneL lncreases Lhe range of producLs avallable whlch lncreases your cholse
4 -J consumer proLecLlon laws are noL normally appllcable lf you purchase producLs
from overseas
1he relaLlonshlp beLween domesLlc and lnLernaLlonal Lrade
CloballsaLlon ls a Lrend LhaL sees people goods money and ldeas movlng around Lhe world fasLer
and more cheaply before ln Lhe commerclal world globallsaLlon refers Lo
CloballsaLlon of producLlon buslnesses becomlng LransnaLlonal by operaLlng ln many
counLrles
CloballsaLlon of markeLs consumers purchaslng producLs from around Lhe world
CloballsaLlon was noL welcomed by everyone CrlLlcs of Lhe process polnL Lo explolLaLlon of workers
especlally ln developlng counLrles and Lhe loss of [obs ln developed counLrles
Cnllne purchaslng
4 Check Lhe deLalls regardlng producL reLurn refund and exchange
4 nsure LhaL Lhe slLe ls secured and LhaL credlL card deLalls are encrypLed
4 ConverL Lhe dlsplayed prlce Lo AusLrallan dollars
4 ecelve conflrmaLlon of your order and follow lLs progress
u-l1 82 AusLralla's paLLerns of Lrade
Internat|ona| trade allows AusLralla Lo geL pasL Lhe markeL plaLeau of our small populaLlon/domesLlc
markeL and our lnablllLy Lo produce all Lhe producLs consumers ln AusLralla wanL
lLems of Lrade
xporLs
An exporL ls a good or servlce sold Lo anoLher counLry AusLrallan buslnesses such as
8lllabong Polden LLd and Lhe unlverslLy of JesLern ydney now exporL a huge varleLy of
goods and servlces

lmporLs
An lmporL ls a good of servlce boughL from anoLher counLry Je lmporL goods and servlces
elLher because we can purchase Lhem more cheaply from overseas or because we cannoL
produce Lhem ourselves

AusLralla's changlng Lradlng parLners pasL and presenL
Jho are AusLralla's maln cusLomers?
uue Lo AusLralla's hlsLorlcal llnks wlLh Lhe unlLed klngdom and urope Lhe ma[orlLy of our Lrade
used Lo be wlLh Lhese reglons Powever slnce Lhe end of Lhe 1940s
As new markeLs began Lo emerge Lhe general emphasls of AusLralla's exporLs has shlfLed Lo
Asla and Lhe unlLed sLaLes
xporLs Lo Lhe unlLed klngdom and counLrles belonglng Lo Lhe uropean unlon (u) have
decllned relaLlve Lo Lhe LoLal
xporLs Lo !apan have grown sLeadlly and lL ls now AusLralla's maln cusLomer followed by
Lhe unlLed LaLes
Jho are AusLralla's maln suppllers?
A dramaLlc decrease ln Lhe lmporLance of Lhe unlLed klngdom has been offseL by an lncrease ln Lhe
lmporLance of Lhe aclflc counLrles namely !apan and Lhe unlLed LaLes and Lhe growlng
slgnlflcance of Lhe ouLhasL Asla reglon
u-l1 83 1he global lnvesLor
A loL of people lndlrecLly lnvesL ln oLher counLrles such as Lhrough superannuaLlon funds whlch Lrade
on Lhe lnLernaLlonal markeL AusLrallans can become global lnvesLors and Lrade dlrecLly on overseas
markeLs
lnvesLlng money ln Lhe global flnanclal markeL
Money ls now more moblle and flows relaLlvely easlly beLween counLrles due Lo Lhe globallsaLlon of
equ|ty (share) markeLs 1hls has come abouL because flnanclal servlces companles such as ueuLsche
8ank ClLlband Coldman achs and -omura ecurlLles have expanded lnLo many counLrles
DNI1 84 1ransnat|ona| organ|sat|ons
leaLures of buslness wlLh global llnks
A LransnaLlonal (mulLlnaLlonal) corporaLlon (1-C) ls a large buslness organlsaLlon LhaL has a
home base ln one counLry and operaLes parLlally owned or wholly owned buslnesses ln
oLher counLrles
1he 1-C represenLs Lhe hlghesL level of lnvolvemenL ln global buslness where naLlonal
borders do noL represenL barrlers Lo Lrade 1-Cs conducL a large percenLage of Lhelr
buslnesses ouLslde Lhelr home counLry
ome 1-Cs lnclude LC Mcuonald's unllever lord -ew CorporaLlon and 8P 8llllLon
All fully developed 1-Cs have flnance asseLs Lechnology lnformaLlon employees paLenLs
goods and servlces whlch all flow freely from one counLry and one subsldlary Lo anoLher
1hese resources may be shared wlLhln Lhe corporaLlon
CperaLlons Lhe maln acLlvlLles of a 1-C ln Lhe AusLrallan economy
Cne example of an AusLrallan 1-C ls 8lllabong lnLernaLlonal LlmlLed manufacLurer of surf
and exLreme sporLs apparel and accessorles lL's head offlce ls ln Cueensland and lLs
producLs are dlsLrlbuLed over 3000 ouLleLs worldwlde 1he producL range conslsLs of over
2200 lLems ln AusLralasla over 1300 lLems ln -orLh Amerlca and 1200 lLems ln urope
Jhy does 8lllabong manufacLure overseas?
1he company now generaLes revenue ln more Lhan 60 counLrles LhroughouL Lhe world 1he
company produces producLs ln more Lhan a dozen counLrles LhroughouL Lhe world lncludlng
AusLralla Lhe uA and varlous counLrles ln Asla and urope lL does everyLhlng pracLlcally
and legally posslble Lo ensure Lhe quallLy of lLs producLs dellvery cerLalnLy for lLs cusLomers
and safe worklng condlLlons for Lhose employed ln lLs producLlon sources
Jhere does 8lllabong manufacLure?
8lllabong sources manufacLured produce from numerous counLrles lncludlng AusLralla
Chlna vleLnam korea lndonesla ll[l lndla Myanmar Mexlco 1urkey and !ordan Cver
98 of producL ls manufacLured by conLracLed facLory suppllers lLs cenLral sourclng dlvlslon
ls based ln Pong kong LhaL provldes mosL producLs Lo AusLralla and -ew Zealand
mploymenL lssues
1he quallLy quanLlLy and composlLlon of Lhe avallable labour force are lmporLanL conslderaLlons for
any buslness as lL undergoes global expanslon as well as esLabllshlng and malnLalnlng effecLlve
employmenL relaLlons
Lafflng
4 8lculLural people are mosLly employed for senlor managemenL poslLlons as Lhey are
able Lo appreclaLe and undersLand Lhe buslness pracLlces and cusLoms ln Lhe hosL
counLry and who can speak boLh languages

Mlnlmum sLandards of labour
4 ach counLry has speclflc labour laws LhaL ouLllne Lhe mlnlmum wage and nonwage
condlLlons for employees
4 Labour sLandards refer Lo Lhose condlLlons LhaL affecL a buslness's employees or
Lhose of lLs suppllers subconLracLors or oLhers ln Lhe producLlon chaln
4 weaLshop condlLlons exlsL ln some developlng counLrles ln whlch adulLs and
chlldren work long hours ln exLreme heaL for very low wages and wlLh vlrLually no
safeLy precauLlons
Cu|tura| d|vers|ty means Lhe mulLlLude of lndlvldual dlfferences LhaL exlsL among people

Lhlcal lssues of lnLernaLlonal Lrade
nvlronmenLal sLandards
Cver Lhe lasL Lwo decades Lhe global buslness communlLy has underLaken many lnlLlaLlves
Lo puL Lhe prlnclple of susLalnable developmenL lnLo pracLlce
lor example Lhe [eans manufacLurer Levl Lrauss and Company has developed lLs own
envlronmenLal pollcy Levl Lrauss wlll conducL buslness only wlLh parLner who share lLs
commlLmenL Lo Lhe envlronmenL
Puman rlghLs code of conducL
Puman rlghLs code of conducL ls one meLhod of conducLlng buslness ln a soclally responslble way
ome organlsaLlons wlll only deal wlLh suppllers who llve up Lo lLs code of conducL requlremenLs
ManagemenL lssues
Commerclal lssues
4 8uslness pracLlces and eLhlc vary beLween counLrles
4 1ax obllgaLlons
4 oclal and culLural dlfferences
Legal lssues
4 unlque legal sysLems
4 -eed Lo undersLand local cusLoms
4 ulfflculLy ln resolvlng conLracLrelaLed dlspuLes
mploymenL lssues
4 Approaches Lo sLafflng
4 CulLural dlverslLy
4 Labour law varlaLlons
4 horLage of skllled labour
llnanclal lssues
4 Currency (exchange raLe) flucLuaLlons
4 MeLhods of paymenL
4 lnsurance cosLs
4 CredlL rlsks
nvlronmenLal lssues
4 cologlcally susLalnable pracLlces
4 LocaLlon of faclllLles
4 1ype of raw maLerlals Lo be used

DNI1 8S G|oba| bus|ness
Clobal buslness and envlronmenLal lssues
1-Cs have been LempLed Lo use many developlng counLrles wlLh proLecLlon laws LhaL are
nonexlsLenL or very weak as a means of engaglng ln acLlvlLles LhaL are deLrlmenLal Lo Lhe
envlronmenL
1hls lncludes Lhe dumplng of hazardous maLerlals lncludlng nuclear wasLe ln developlng
counLrles
lsks assoclaLed wlLh selllng Lo global markeLs
Currency rlsks
CounLrles have Lhelr own currencles for domesLlc purposes ln whlch flucLuaLlons creaLe rlsks
for global buslnesses
1he fore|gn exchange rate conslsLs of one currency belng converLed Lo anoLher
xchange raLes flucLuaLe over Llme due Lo varlaLlons ln demand and supply
Deprec|at|on lowers Lhe value of a currency ln Lerms of forelgn currencles uepreclaLlon of
Lhe AusLrallan dollar makes our exporLs cheaper on lnLernaLlonal markeLs buL prlces for
lmporLs wlll rlse
Apprec|at|on of currency has Lhe opposlLe effecL exchange raLe flucLuaLlons wlll affecL Lhe
proflLablllLy and producLlon cosLs
ollLlcal rlsks
o||t|ca| r|sk ls any pollLlcal evenL whlch resulLs ln a drasLlc change Lo Lhe counLry's buslness
envlronmenL and whlch ulLlmaLely has a negaLlve lmpacL on buslness operaLlons and proflL
1hese Lypes of rlsks Lend Lo be greaLer ln counLrles experlenclng soclal and economlc unresL
parLlcularly Lerrorlsm war or oLher vlolenL confllcL
ln Lhese slLuaLlons buslnesses may have Lo flnd ways of dlrecLly lnfluenclng pollLlcally
powerful people ln order Lo obLaln permlsslon Lo operaLe ln Lhe counLry
Legal rlsks
Clobal buslness ls affecLed by many Lhousands of laws and regulaLlons because each counLry
has lLs own unlque seL of laws and legal sysLems
1hls poses a number of rlsks for global buslnesses ln Lhe areas of
4 ConLracL law especlally Lhe meLhods of enforclng conLracLs
4 Legal dlspuLes resolvlng Lhese can be very compllcaLed due Lo dlfferences ln legal
sysLems and culLure
4 Inte||ectua| property rlghLs weak proLecLlon can cosL lnLernaLlonal buslnesses a
greaL deal of money
oclal and culLural rlsks
lL ls lmporLanL LhaL lnLernaLlonal buslness people fully undersLand and appreclaLe Lhe
cusLoms and LradlLlons of Lhe counLrles Lhey deal wlLh lalllng Lo do so may resulL ln elLher
an embarrassmenL or losL buslness opporLunlLles
DNI1 86 Internat|ona| a|d programs
ole of ald
Iore|gn a|d conslsLs of flnanclal and Lechnlcal asslsLance by governmenL and nongovernmenL
(prlvaLe) organlsaLlons from developed (hlgh lncome) naLlons Lo developlng (low lncome) naLlons
1he asslsLance comprlses
O Loans lnvolvlng Lhe paymenL of an lnLeresL raLe Lo Leh donor counLry
O CranLs glfLs whlch do noL have Lo be repald
O 1echnlcal asslsLance Lralned personnel such as englneers Leachers and medlcal sLaff Lo
help wlLh developmenL programs
O lood and emergency ald donaLlons of food cloLhlng and shelLer ln response Lo naLural or
human dlsasLers
O ducaLlon and Lralnlng programs as parL of a pro[ecL or educaLlon ln Lhe developed counLry
O 1echnologlcal ald machlnery and equlpmenL
O CommunlLybased pro[ecLs consLrucLlon of schools wells healLh cenLres eLc
ources of ald
1 -on governmenL ald
1hls ls provlded by over 110 AusLrallan humanlLarlan nongovernmenL organlsaLlons
(-CCs) 1hese lnclude rellglous and volunLary organlsaLlons such as ChrlsLlan 8llnd Mlsslon
lnLernaLlonal 1A AusLralla and Jorld vlslon and nonrellglous organlsaLlons such as CA
AusLralla and Lhe ed Cross

2 CovernmenL ald
1he AusLrallan governmenL's overseas ald program ls managed by AusAlu Lhe AusLrallan
Agency for lnLernaLlonal uevelopmenL whlch provldes asslsLance for over 60 mllllon people
llvlng ln poverLy around Lhe world 1hese programs play an lmporLanL role ln malnLalnlng Lhe
llnks wlLh reclplenL counLrles mosL of whlch are locaLed wlLhln Lhe Aslaaclflc reglon
1he governmenL alms Lo
AsslsL Lhe economlc developmenL of Lhe reclplenL counLrles
romoLe pollLlcal sLablllLy ln Lhe reglon
Pelp develop lnvesLmenL and Lrade opporLunlLles for AusLrallan buslnesses
oles of forelgn ald
lorelgn ald ls used Lo supporL economlc developmenL ln Lhe reclplenL counLrles 1he rlcher counLrles
provlde help Lo developlng counLrles whlch lack flnanclal and Lechnlcal asseLs Lo lmprove Lhelr
physlcal and human resources lorelgn ald programs encourage ecologlcally susLalnable economlc
developmenL uccessful ald programs reduce poverLy lmprove llvlng sLandards and resulL ln
sLronger more sLable communlLles