Home Grown Business-Role of ethics in global business decisions /FTA's

Question 1

What is a home-grown Business?

Answer 1

a business that has designed products in Australia and produced them domestically.

Question 2

A successful domestic business has the following benefits, when looking to international expansion:

Answer 2

1) Marketing strategies have been** tested** domestically.

2) Established distribution channels and practices.

3) Products are already developed and produced.

4) Established business systems in communication, administration and continuous improvement.

5) Domestic success provides the revenue for expansion.

Question 3

what are benefits for countries where home grown businesses are located ?

Answer 3

1.Greater sales of home-grown products overseas leads to greater profits for the business and these profits staying in Australia.

2. Greater sales leads to **more employment **in the home country
3. Increasing the** reputation of Australian produced goods **in the international market.
4. increases in taxation collection from businesses too due to greater profits from more sales

Question 4

benefits of protecting domestic markets/homegrown business…

Answer 4

helps secure stability and safeguard economies into the future.

Question 5

why should we protect Domestic business from International markets /imports ?

Answer 5

to preserve our domestic market and avoid the consequences of domestic market failing. therefore.
Aust will place a number of protectionist measures to ensure that domestic markets are protect from imports/international markets

Question 6

having a home-grown brand allows for businesses to ……

Answer 6

establish and leverage productive business practices before heading into international markets. Homegrown, businesses, expanding internationally, deliver benefits to Australian households, government and society as a whole.

Question 7

ethic business

Answer 7

Companies are expected to act ethically.Ethical businesses behave as “good global citizens” and use their economic and social influence to contribute to society, uphold social values and raise living standards both domestically and globally.

Question 8

Role of ethics in global business decisions ,include ?

Answer 8

1.Environmental responsibility

2.Outsourcing

3.The use of offshore labour

Question 9

what to do we mean by environmental resposibility ?

Answer 9

the ethical obligation of organisations to act in ways that protect and preserve the natural environment.

Question 10

How can businesses be environmentally responsible?

Answer 10

1.Reducing use and waste

2.Recycling resources (water, energy, paper)

3.Measuring carbon footprint

4.Using carbon offsets

5.Companies may also ensure their inputs are environmentally sustainably sourced.

Question 11

what are the benefits of sustainable businesses ?

Answer 11

**Reduced Costs **
- Using resources efficiently leads to lower costs.

**Staff Loyalty **
- Natural lighting, heating and cooling creates a healthier working environment

**Public relations and image **
- Puts a positive light on the business
- Appeals to consumers values
- Can attract investment

Carbon Trading
- Emission Trading Sche

Question 12

what does sustainability aim to do?

Answer 12

aims to meet the needs of corporate stakeholders today, while seeking to protect and preserve resources and the environment for the future. it is about balancing profit with protecting the environment.

Question 13

overall message for environmental responsibility …

Answer 13

businesses have regulations they have to follow to ensure they act sustainably. They may circumvent regulations and go against social values and norms if they value profits over the environmental damage.

Question 14

what do we mean by outsourcing?

Answer 14

Outsourcing involves an organisation identifying activities that can be given to another organisation (the vendor) to perform on their behalf.

Question 15

what service can we outsource?

Answer 15

1.Manufacturing

2.Market research

3.Administration

4.Customer service operations

Question 16

why should a company outsource ?

Answer 16

1.A company does not have the skills or expertise to complete a task themselves

2.Lower costs

3.Management can focus on core business activities

4.Avoid costly investments in tech (info, manufacturing)

5.Improving customer focus

Question 17

Key considerations to outsourcing…

Answer 17

Companies must consider their impact on workers and their bottom line (exploitation vs profits).

Businesses must also consider the ethics of replacing domestic jobs with offshore jobs.

Question 18

overall message for Outsourcing .

Answer 18

it moves potential Australian jobs overseas. This is action taken by a company in order to lower costs, focus on core activities, avoid costly investments, improve focus on customer service and allow for an expert to complete the services properly.

Question 19

what are the ethical issues of offshore labour?

Answer 19

1.exploitation of low income workers in developing countries. 2.This can lead to the creation of sweatshops in third world countries.

Question 20

an example of offshore labour is sweatshops ,they have ethical issues as they have the following conditions ….

Answer 20

1.Long work hours

2.Poor pay

3.Unhealthy conditions

Question 21

what are the negative impacts of offshoring ?

Answer 21

1.Decrease in Australian employment – people lose jobs.

2.Customers resenting having to deal with offshore customer service staff.

3.Difficulty in managing staff in another country.

Question 22

why would companies invest in Offshoring?

Answer 22

to lower their cost of running a business

Question 23

what unethical practises happens in Australia?

Answer 23

employers may replace these workers with younger cheaper workers.
Young people can lose their job when they reach adult age and receive the adult wage

Question 24

overall, what does offshoring do?

Answer 24

it creates ethical issues in that workers in developing nations can experience low pay, poor conditions and long hours. There are also ethical issues in Australia, as domestic workers lose their job. This can create brand awareness issues in Australia

Question 25

Syllabus Point

Host country and home government incentivises intrenational trade by using?

Answer 25

1.Grant
2.Tax

Question 26

why might government be interested in developing exporters’ capabilities?

Answer 26

1.Gvt have interest in stimulating exporters ability to engage in global business, as this will help the economy to thrive
2.Governtments can get money from exports
3.exporting more can support Australia’s Reputation as a high quality exporter which may lead to greater foreign invenstment.

Question 27

The government looks to increase Australian exports by…….?

Answer 27

providing financial assistance which can be in form of grants, that provide money to businesses developing their exports, or reducing of costs, through the use of tax incentives to allow businesses to spend their money on developing their business.

Question 28

how can the economy grow through domestic exporters?

Answer 28

exporters will be sending Australian products to overseas markets, and bringing money back into Australia. This can help grow the national GDP (Gross Domestic Product).

Question 29

what are Grants ?

Answer 29

Financial assistance used to encourage Australian business to develop their exports

Question 30

why would The Gvt Incentivise trade through grants and how do Grants help exporters?

Answer 30

1.Gvt offers financial assistance to foster exports
2.this money incetivies exporters by reducing the costs of building exports

Question 31

what are tax incentives .

Answer 31

1.They are tax breaks that encourage or discourage certein business decisons by exporters.
2.Reducing taxes help businesses by giving them more money to spend on production for export.

tax is a significant expense

Question 32

Examples of tax Incentives .

Answer 32

1.Exports can be exempt from the Goods and Services Tax (GST), allowing for a more competitive price.
2.Duty Drawback scheme, allows exporters to claim refunds on customs duty they have paid.
3.The ATO offers tax incentives for Research and development

Question 33

Define Free Trade Agreement.(FTA)

Answer 33

an international treaty between two or more economies that reduces or eliminates certain barriers to trade in goods, services and investment.

Question 34

Features and roles of FTA.

Answer 34

All free trade agreements remove barriers to trade.

FTAs are **agreements **between economies.

FTAs are negotiated over a long period of time.

FTAs seek to benefit all parties.

Bilateral free trade agreements are made between two countries. (Bi = 2)

Regional free trade agreements are made between two or more countries (region/location)

Question 35

The 2 types of FTAs

Answer 35

ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA)

Australia New Zealand Closer Economic Relations Trade Agreement (ANZCERTA)

Question 36

what are keypoints of the ASEAN Australia New-Zeland Free Trade Agreement(AANZFTA) agreement?

Answer 36

1. Elimination of at least 90% of all tariff lines Between memebr countries (all goods are now cheaper).

2.Movement of** goods will be facilitated through more modern and flexible rules** , and** simplified customs procedures ** (less red tape, allows for faster & cheaper trade).

3.Lower barriers to trade of service(**deregulation of the supply of services **) allows for countries to gain new access to services

Question 37

What Does ANZCERTA stand for ?

Answer 37

Australian New Zealand Closer Economic RelationsTrade Agreements.

Question 38

who is involved in ANZCERTA?

Answer 38

Australia and New Zealand signed the agreement in 1983.
It covers all trans-Tasman trade (this just means trade between Australia and NZ)

Question 39

What are the Features points on ANZCERTA?

Answer 39

• removes all tariffs and restrictions on imports and exports between the 2 countries
• Minimise gvt industry assistance,export subsidies and incentives to ensure level playing field (minimal grants and tax incentives for Australia and NZ businesses, dropping protectionism measures between the two)
• Food standards are standardised

Question 40

overall what does the ANZCERTA FTA Eencourage?

Answer 40

it encourages AUS and NZ to level the trading playing fiels .this leads to increase trade and investment between the two nations.

Question 41

what are the benefits of FTAs?

Answer 41

1.Greater economic activity and job creation.(GDP)
2.Wider range of competitively priced goods and services/more choice and lower prices
3.Australian businesses can receive foreign investment
4.Promote economic integration/Interanational cooperation
5.Developing nations experience growth.
6.increased Production and effieciency

Question 42

overall ,message on FTAs benefits.

Answer 42

FTAs encourage** connections between countries. The increasing flow of trade and investment leads to greater variety of goods and services at a reduced price**. Increasing opportunities for all nations involved leads to greater economic growth

Question 43

what are the challenges of FTAs for Australian Businesses?

Answer 43

1.Short term unemployment/economicaly
2.Australian businesses are now greatly affected by economic downturns in other countries.
3. International markets are not a level playing field. ( unfair competition factors in export market
4. Developing or new businesses now have a greater challenged getting established.(due to more competition and protecting policies exsting