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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 significant legal influence that an Australian business must consider when choosing a market for international expansion is compliance with local regulations. Each country has its own set of laws regarding trade, taxation, labor, and environmental standards. For example, if the business plans to expand into the European market, it must comply with the General Data Protection Regulation (GDPR), which governs data protection and privacy for individuals within the European Union. Non-compliance can lead to hefty fines and restrictions on operations.
Step 2
Explain how this business might respond to ONE social/cultural influence in an overseas market.
Answer
In response to social and cultural influences, the business might adapt its marketing strategy to align with local customs and consumer preferences. For instance, if expanding into a country with a strong focus on sustainability, the business may emphasize eco-friendly practices in its operations and products. Additionally, utilizing local languages and cultural symbols in advertisements can help build a connection with the target audience. This cultural sensitivity shows respect for local traditions and can enhance brand loyalty, ultimately leading to better market acceptance and success.