International Business: Skateboards Expanding Into Australia

TO : Chief Executive OfficerFROM : Business AnalystSUBJECT : Exporting skateboards to AustraliaFirst of all , we should cite some of the reasons why Australia would make a good amplification foodstuff . In this sense , the most important shargon to be relateed is the minimal governmental and economical risks associated with the Australian market . Australia has a pluralistic , parliamentary society , with a democratic governmental corpse and rotation into power of the different political parties . In economical terms , the Australian economy has certain as a market economy for a presbyopic period of time and br the policies that the Australian government atomic number 18 implementing encourage a solid , fetchable economic produce , foreign investment and expansion We are not keep back to experience in Australia any large drops in the study currency , risks of nationalization or expropriation etcOn the other hand , from the kindred macroeconomic perspective , we have to investigate the number of authority targeted clients . According to the characteristics of our product , their socioeconomic characteristics would include young heap , with medium to high income levels , with an interest towards sport and being trendy and inline with the modern fashionFrom many points of views , Australia fulfils many of these characteristics . The population between 0 and 64 years of age covers 86 .9 of the population , which would involve that the Australian population is relatively young from this perspective .

additionally , in terms of income , the GDP per capita amounts to 31 ,900 (2005 est ) and given the scattering of income in developed countries , we can assume that the level of income is clean high to sustain a argument such as selling skateboardsAll these elements mentioned here would sustain the idea that the Australian market would be a good market to expand the business into given its large potential , stable economical and political system etcIn terms of risks to be considered , we should first of all mention the financial risks associated with such an international expansion . The problem is that the skateboards interchange onto the Australian market are sold in the topical anaesthetic currency (Australian Dollar ) and this is subject to fluctuations in value gibe to the pressures in the international currency markets . If the Australian Dollar willing devalue as compared to the US Dollar , the net gains for the companionship , in absolute terms , will decrease . This is as well cor think with the fact that the company s production be are all associated with the US DollarIn this sense , we may suggest hedgerow as the best method to reduce currency risks of the character reference previously described . Hedging would mean investing in coming(prenominal) contracts on the market so as to remainder the risk of a devaluation of the Australian Dollar . In this cross case , this would mean purchasing US Dollar future contractsOther operational costs we need to consider are related to problems such as transportation cost and inventory costs . In to minimize these we suggest a information system that would be able to coordinate all these different elements and to sustain the efficiency of the supply...If you want to get a full essay, come in it on our website: Ordercustompaper.com

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