Unit 3: Strategic international business growth

4 dot points across 4 inquiry questions, in syllabus order. Each dot point has a focused answer, with exam-style questions and worked answers where available.

Management: how does a business assess and manage the risks of expanding into foreign markets?

Explain the financial risks of export markets (such as exchange rate, payment and political risk) and methods of managing them, and assess the feasibility of expanding into a foreign market

The financial risks of selling overseas (exchange rate movements, non-payment, political and legal risk) and how businesses manage them (hedging, letters of credit, export credit insurance, pricing in Australian dollars), and how to assess whether a foreign market expansion is feasible.

8 min read →

Environments: what drives international business development, and how do trade incentives and agreements shape it?

Explain the factors driving global business development, incentives for international trade, the role of free trade agreements, home-grown and home-developed products in global markets, and the role of ethics in global business decisions

Why Australian businesses expand overseas (saturated home markets, economies of scale, technology, demand in growing economies), government incentives such as Austrade support and export grants, how free trade agreements such as AANZFTA and ChAFTA lower barriers, how home-grown products compete globally, and why ethics matters in global decisions.

8 min read →

People: how do businesses manage change and cultural differences as they grow globally?

Explain the factors driving change in a global market, the reasons people resist change, how change can be managed using models such as Lewin's force field analysis and Kotter's eight steps, and cultural considerations in global business practice

What drives change in global markets, why employees and managers resist change, how Lewin's force field analysis (and unfreeze, change, refreeze) and Kotter's eight steps help manage it, and the cultural considerations (language, communication, hierarchy, time, negotiation, etiquette) that affect global business practice.

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Management: how do businesses market globally, partner with others and innovate to grow internationally?

Compare standardisation and adaptation in global marketing, explain the purpose, types, benefits and risks of global strategic alliances, and explain the factors affecting the success of innovation

When to standardise or adapt the marketing mix for global markets, how global strategic alliances (joint ventures, licensing, franchising, equity and non-equity alliances) help businesses enter markets and what can go wrong, and the internal and external factors that make innovation succeed or fail.

8 min read →