Assignment

INTERNATIONAL BUSINESS ACROSS BORDERS
Table of Contents
Answer to Question 1    3
Answer to Question 2    4
Answer to Question 3    5
Answer to Question 4    7
Answer to Question 5    10
Answer to Question 6    11
References    12
Answer to Question 1
(i) Institutional Framework
A structural set of organisational framework is termed as institutional framework. The structure includes rules and informal norms of providing a service. An institutional framework is a body, which refers to the provision of law and other essential responsibilities. It is also an authoritarian agency, which is endowed to carry out the different tasks of collection, promotion and dissemination of statistics (Ranald, 2020). An institutional framework also makes arrangements for the facilitation of data sharing and coordination between the data centres providing the data. Institutional framework is a prominent feature for successful business management.
(ii) Types of Institutions Reducing Firm’s Uncertainty
Every business thrives because of a successful business plan. These plans may be treated as the factors that help institutions to reduce uncertainty of a firm. The steps include:
Having a Clear Vision of Purpose and Vision
A business owner should be visionary and must have a clear plan to achieve the business goals. A perfect business plan serves as an anchor, which helps a business to operate in a smooth and flexible manner (Thomas et al., 2019). A vision is a powerful tool for inspiration and a clear-cut plan. A plan or a vision has statements. These statements give clarity, focus and inspiration.
Systemise the Business
It is crucial to react to the customer demand and solve their problems to eliminate uncertainty in a business. A successful business is that, which has an efficient system in handling the tasks. The everyday task gets easier, when a business earns more confidence.
Asking Questions
At the time, when an entrepreneur asks questions, it becomes easier to understand the risks or threats, which applies to the current business. Therefore, they can easily sort the existing external problems.
Focus
Complete focus for strategic planning is required. Small changes can be applied to the existing business goals without disregarding the actual plan.
Making Direct Competition Irrelevant
Having a conversation with the customers gives a business owner ideas about what are the actual demands of the customers. This makes them aware of the competition in the market and makes them assess the ways many other firms are selling the same product or service.
Inspiring the Employees
Employee motivation is deemed the key for a successful and effective business-planning scheme.
Discipline
It is mandatory for every business to have a code of conduct. This involves having a set of rules and decorum to be followed by both the employers and the employees.
Answer to Question 2
Australia has outperformed all the other nations worldwide in the past two decades, when it comes to the question of investment. The foreign direct investment has stimulated the growth of Australian economy. FDI allows the creation of more job opportunities. FDI stimulates the economy (Higham, 2021). Numerous factories have opened in the nation as a merit of FDI. There is the occurrence of large-scale employment generation, giving better lives to its citizens. It has supported the local market and developed greater infrastructures. The primary source of external capital is FDI. This has helped in the creation of greater competitiveness, generate innovative ideas and enhance productivity.
FDI is a policy plan to improve human resources. The employees, who are also known as human capital, are largely benefitted through an FDI. They gain more knowledge on a broader scale. The overall impact of FDI is that there is an increase in the human capital quotient. FDI enhances a country’s finance and technology sectors. It allows the businesses to obtain new tools and technologies from different countries. This creates an extra revenue stream. FDI helps in the development of a community and the backward areas. There is exchange rate stability and capital inflow through FDI.
The contribution to pollution can be treated as one of the major demerits of FDI in Australia. The major industry contributing to the pollution is the automobile industry. FDI is also the reason for the exchange crisis, which is faced by Australia from time to time.With the increase in inflation, the price of exports often decreases, catering to a loss in the Australian business (Pulla, 2020). In countries, especially in Australia, where FDI have made its way, they have faced cultural shocks. The native cultures disappear with the onset of foreign culture. FDI’s are to be blamed for the political corruption, which keeps occurring in the nation. FdI’s are accused of changing the political set up after gaining personal motives.
FDI is a contributing factor to Australia’s inflation. The FDI’s are likely to spend large sums on advertisements and consumer promotion. They group themselves into cartels to destroy the market. The trade agreements of TRIPS and TRIMS have restricted the production of a number of products in Australia. These can only be produced with the payment of royalties to the countries, in which the products have originally been invented. The convertibility of currencies because of FDI might not be possible (Pulla, 2020). The reason behind it is the insufficient availability of foreign currencies. FDI’s withdrawing their investments is unprofitable for a nation.
Answer to Question 3
(i) Firms to Survive the Effects of Covid-19
All businesses around the world have faced some challenges to survive the business during Covid 19. The nationwide lockdown had severe effects causing a slump in the businesses. The businesses found it challenging to keep their wheels rolling. The result was a less revenue generation and the uncertainty in the global financial environment. The businesses were expected to follow some survival strategies to remain in the business. They are as...