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An Australian business is planning international expansion - HSC - SSCE Business Studies - Question 21 - 2010 - Paper 1
Question 21
An Australian business is planning international expansion. (a) Describe ONE legal influence that this business might have to consider in its choice of market. (b)... show full transcript
Worked Solution & Example Answer:An Australian business is planning international expansion - HSC - SSCE Business Studies - Question 21 - 2010 - Paper 1
Step 1
Describe ONE legal influence that this business might have to consider in its choice of market.
Answer
One legal influence that the business might have to consider is trade regulations. These regulations can include tariffs, import/export restrictions, and compliance with local laws that govern the sale of goods and services. Trade regulations can greatly affect the cost of doing business in a foreign market. For instance, if a country has high tariffs on imported goods, the cost of entering that market may increase substantially, making it less attractive for the business to expand there.
Step 2
Explain how this business might respond to ONE social/cultural influence in an overseas market.
Answer
The business might respond to local customs and consumer behavior in the overseas market by tailoring its marketing strategies. For example, if the target market has specific cultural holidays or social customs, the business can create promotional campaigns that align with these events. By doing this, they not only show respect for local culture but also increase their market relevance and customer engagement. Understanding cultural nuances can help the business adapt its products or services to better fit local tastes and preferences.