International Business Management Research Paper

International Business Management - Research Paper Example Australia possesses remarkable diversity of life forms which is unique compared to rest of the world, its diverse culture and lifestyle reflects its liberal democratic traditions and migrants. According to Aswathappa (2010) the environment of international business is regarded as the sum total of all the external forces working upon the firm as it goes about its affairs in foreign and domestic markets. Understanding of the Australian business culture can relieve tension in a business transaction and make it beneficial and enjoyable for both business parties (Nolan 1996). Australia enjoys political stability and has a federal system of government with powers generally distributed between the Federal Government and State Governments all of which are governed through elected Parliaments. Australia’s foreign investment policy encourages FDIs which are consistent with community interests and they are required to register and get approval from FIRB in certain categories like proposa l to establish new business, investment in sensitive sectors, acquisition of assets and shares and real estate (Feslers, 2010). According to AMB Country Risk Report (2010) Australia in a Country Risk Tier (CRT) – 1 country with very low levels of economic, political and financial system risk and experienced 18 years of uninterrupted economic expansion. With such rich natural resources and diversity in socioeconomic and political background, Australia is the best place to start a new business as stated by World Bank report and also due to low risk factors. Introduction The globalization process has made it compulsory for the companies to expand their business operations beyond its national boundaries and enter the international market and to operate in global market. As the global economy continues to develop, managers need to learn the process of working and operating business in international arena in the same way as they do in their own backyard (Lane et al, 2005). Successf ul corporations embrace a global perspective and philosophy to survive and prosper in the international environment which is a challenge for the companies to deal with the dynamic environment (Punnett, 2010). International business as a field of study and practice encompasses that public and private business activity affecting the persons or institutions of more than one national state, territory or colony. The effect may be in terms of their economic well being, political status, conviction skills or knowledge, International business differs from the purely domestic because it involves operating effectively within different national sovereignties, under widely disparate conditions, with peoples living with different value systems and institutions, legal systems, etc. In order to make a movement or take a decision for international expansion, it is important and essential to make a strategic approach taking into consideration the domestic environment of the country selected for the expansion, the socio economic environment, the structure of the international economic and political system, and company resources. This paper presents the possibilities and factors to conduct business in Australia and provisions and facilities in form of encouragement like certain exemptions provided the host country to promote foreign investments. Background on the country