The world has grown into a global village, and the need to look beyond the borders of a nation as far as investments are concerned is dire. Different considerations come in handy when planning to invest in global markets, and this is because of the diversity of customers and investors in the global markets. Different approaches and strategies associated with the process of making decisions and running organizations help an organization to woe customers and to excel in the competitive global markets. The proposal will look into all areas that are relevant to investing in the global markets and the ways to overcome the possible challenges. Some of the areas of concentration will be pricing, laws, marketing, and the business environment.
Shipping is an essential aspect while investing in the global markets because the goods must be transported from the manufacturer to the intended customers (Zhang, Podobnik, Kenett, and Stanley, 2014). The products will be shipped to other nations using different shipping companies which operate in the country. The two possible organizations that will be used are FedEx and G4S. The two shipping organizations have been operational in the country for a long time, and they have established a good relationship with other organizations (Alizadeh, Kappou, Tsouknidis, and Visvikis, 2015). Therefore, it is evident that their services will be paramount to the business. The products will be shipped in 20FT containers, and the first destination will be the United Kingdom. The price of shipping will sum up to $1,878.
The business is aimed at selling its products to different nations, and that means that it will not be affected by Australian GST law. The Australian GST law which was changed in July this year concerns the imports and not the exports (Sinning and Hasan, 2016). However, it could affect the prices indirectly. If the business needs raw materials which must be imported, then the prices will be affected by the tax, and that means that the products will be sold at a relatively higher price.
Nations have different trade agreements and laws (Picciotto, 2017). For example, there are nations which have established duty-free entry of products from other countries. In the case the products will be shipped to countries that have good trade agreements with Australia, the prices will be relatively low. However, if there are nations which have implemented a law similar to Australian GST, then the prices will be high, and this is because of the 10% tax on imported products.
2. The purpose of a “Freight Forwarder” and how it could help in my business
A freight forwarder is a person or company that makes sure that the products leave the manufacturer and reaches the customers without the manufacturer being physically present to monitor the whole process. The purpose of a freight forwarder is to link the products of the company with the consumers (Jacobs, 2015). A freight forwarder will be essential to the business, and this is because he or she will help in reaching the potential customers. Freight forwarders are professionals and experienced, and therefore they are likely to deliver better services as opposed to the company using its delegation to reach its customers. At the same time, they save the company the cost of travel and time.
3. Setting up an international campaign with both Google and Facebook
The internet has given rise to new strategies of reaching customers, and that is why Google and Facebook will come in handy to market the products to the international customers. In 2017, the number of people who were using Google was more than 2 billion all over the world. Google brings people from all walks of life together through the internet, and that means that Google would be an appropriate tool to reach a wider audience (Dempster and Lee, 2015). Two different methods will be used to enhance the campaign on Google; the first method is Google Ads and the second is Prioritized search.
In Google Ads, the company receives advertisements from the customers and presents them to the users in the form of videos or pictures. The company has given the customers a choice to choose the targeted audience. It is for this reason that the company would use this tool to reach the targeted customers in their respective locations (Dempster and Lee, 2015). The second method which is a prioritized search is effective as well. In this method, the company makes sure that when the users search for products with a similar name to that of the advertiser, the site and products of the advertiser appear first. Therefore, it means that many customers get to know more about the products.
Facebook is a social media platform that has transformed into an effective and global marketing tool, and it has more than 2.23 billion subscribers all over the world (Cox and Park, 2014). Many organizations that are investing in the current global market have Facebook accounts that help them to market their products and also to hear from their customers. A business Facebook page will be opened where the company will state its mission, vision, and values. The company will then post its products on the page and later promote the posts to reach more customers in different areas. Like Google, Facebook also gives the users an opportunity to choose their area of location and the targeted audience, and that will come in handy when it gets to the aspect of reaching a diverse population.
The best approach when it comes to partners has an accountant who takes care of the financial commitments and records. The advantages of doing so are that conflicts between the partners on financial matters are eliminated, and an accountant is a professional, and so he or she will also provide professional advice to the business partners. The average cost of hiring a competent accountant in Australia is $89,658, and that means that in the first year, the company will have to part with $89,658 which will take care of the accountant’s salary (Graham, 2017). The laws call for all Australians to be transparent while filing their tax. At the same time, they must have the knowledge to do so and if not, they ought to consult a knowledgeable person. The government also calls for the citizens to note the difference between a business tax and personal income tax. A business person should, therefore, consider filing tax returns from the business and the salary as well.
Three most significant financial documents should not be lost in business. The first document is the income statement. The income statement helps an organization to know if the company has a potential to make profits or not. The balance sheet is the second financial document that is essential to keep in business. The balance sheet helps to know the assets and liabilities of a business (Rodrigues, Cristo, Ferreira, Fernandes, and Carvalho, 2015). Without it, an organization cannot know its assets and financial positions. The third essential financial document is the statement of cash flows. An organization is run by cash, and it is critical to track the cash flow of a business. The document helps to know if the company is spending wisely or there is cash that is leaving the company without statements on where it has been taken.
5. Risk and reward in the international markets and economics with types of economic systems likely to be encountered internationally for my business
In the international space, risk and reward are common. Risks are associated with the decision of a company entering into the international market (Satchell, Bacon, Firth, and Corr, 2018). The risks are a possibility because the company ventures into a new market that might not be predictable. The risks might be operational or financial. A reward is associated with the benefits that a company receives after venturing into a market and starts making profits. A reward is as a result of successful operations and benefits and in most cases associated with increased profits. Economics can be defined as how societies utilize their limited resources (Kagel and Roth, 2016). Economics concentrates on the production, distribution, and consumption of goods and services. The economic system that the business is likely to face in the international business world is the market economic system (Filatov, 2014). The market economic system is the best to venture in because the government does not control the markets thus giving organizations a chance to advance and to be diverse when it comes to manufacturing and supplying products in the market. Regulated markets tend not to be as profitable as free markets, and this is because the governments control the markets. The case is worse to international investors because they are treated as outsiders, and that means that the barriers to trade are more as compared to those of local traders.
References
Alizadeh, A.H., Kappou, K., Tsouknidis, D., and Visvikis, I., 2015. Liquidity effects and FFA returns in the international shipping derivatives market. Transportation Research Part E: Logistics and Transportation Review, 76, pp.58-75.
Cox, T. and Park, J.H., 2014. Facebook marketing in contemporary orthodontic practice: A consumer report. Journal of the World Federation of Orthodontists, 3(2), pp.e43-e47.
Dempster, C. and Lee, J., 2015. The Rise of the Platform Marketer: Performance Marketing with Google, Facebook, and Twitter, Plus the Latest High-growth Digital Advertising Platforms. John Wiley & Sons.
Filatov, V.V., 2014. Theoretical questions of formation and development of the market economic system industry innovation. II Science, Technology and Higher Education, 30, pp.124-128.
Graham, T., 2017. Present at the Creation: Economists and Accountants in International Trade Law Practice. The Use of Economics in International Trade and Investment Disputes, p.47.
Jacobs, A., 2015. The effects of the concentration in the liner shipping industry on the services provided by ocean freight forwarding companies (Doctoral dissertation).
Kagel, J.H. and Roth, A.E. eds., 2016. The handbook of experimental economics, volume 2: the handbook of experimental economics. Princeton university press.
Picciotto, S., 2017. Rights, responsibilities, and regulation of international business. In Globalization and International Investment (pp. 177-198). Routledge.
Rodrigues, J., Cristo, M., Ferreira, J.Z., Fernandes, D. and Carvalho, A., 2015. Multi-Entity Polarity Analysis and Detection of Subjectivity in Financial Documents. Journal of Information and Data Management, 6(2), p.130.
Satchell, L.P., Bacon, A.M., Firth, J.L. and Corr, P.J., 2018. Risk as reward: Reinforcement sensitivity theory and psychopathic personality perspectives on everyday risk-taking. Personality and Individual Differences, 128, pp.162-169.
Sinning, M. and Hasan, S., 2016. GST reform in Australia: implications of estimating price elasticities of demand for food. In ACDE Trade & Development seminars, Crawford school of public policy, Arndt-Corden department of economics, tax and transfer policy institute, Australian National University.
Zhang, X., Podobnik, B., Kenett, D.Y. and Stanley, H.E., 2014. Systemic risk and causality dynamics of the world international shipping market. Physica A: Statistical Mechanics and its Applications, 415, pp.43-53.
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