Chapter 2 (Home-grown business)

3 major points to know about this chapter are:

  1. The incentives for international business
  2. Global business ethics
  3. Other ethical dilemma

The incentives for international business

Austrade:

  • administers government’s Export Market Development Grants (EMDG) scheme for new and existing international businesses
  • financial assistance in the form of a reimbursement of up to 50% of expenses incurred on eligible export promotion activities
  • businesses that have less than $50 million per year and incur at least $15000 of eligible export expenses are eligible
  • providing information about international markets and trends
  • arranging meetings with potential clients and partners
  • providing ongoing support and information

Export Finance and Insurance Corporation (EFIC) Export Finance Guarantee:

  • a facility between EFIC, a bank or other financial institution and a foreign business partner
  • provides a guarantee to the bank for the buyer’s payment obligations
  • secures finance and minimises the risk of payments not being made between businesses in different countries

Home-grown benefits

For a businesses to have international success they must have a strong base. A business can use a strong domestic foundation to expand overseas. Marketing strategies can be tested, products developed and distribution  channels established. Domestic success also establishes business systems in communication, administration and continuous improvement.

Global business ethics

  • Offshore labour
  • Environmental responsibility
  • Reduced costs
  • Staff loyalty
  • Public relations and public image
  • Carbon trading
  • Outsourcing
  • Dumping
  • Fair trade

Other ethical dilemmas

  • Bribery
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