2007 HSC essay question (1 Viewer)

[captain awesome]

Hello

For the 2007 paper qs 27 and 28 both ask to:
Outline external sources of change for a business to expand internationally.

I was thinking external sources of change for topic one, but the success one past paper book just included: changes in level of local demand, changes in intreats rates, changes in labour law regulations and access to resources.


What part of the syllabus would this go under??
:S

Any thoughts?

 

[littlemonster24]

Yeah I saw that response and I was a little unsure... When I saw external sources of change I thought it would be from the Business Management and Change topic; external influences — the changing nature of markets; economic, financial, geographic, social, legal, political and technological developments. But those are from Global Business, but they're not all influences, only changes in interest rates are an influence... access to resources and labour law regulations (regulatory differences) are all reasons for expansion... however, I think they can still be classified as external changes and reasons to expand, so it makes sens but I guess it may not always have to be from one specific part of the syllabus...

 

[littlemonster24]

I've looked at it again and I think the sample answer is right because basically that just one half of the question, so it requires influences and reasons for expansion but only the external influences so not to like to increase sales.. cause that's not an influence. I think this one required us to think a little more.... Fingers crossed this yrs questions is nicer

 

[littlemonster24]

Oh wait a minute! I've just looked at the sample response from another HSC study guide and the external sources of changed they've used are from the Biz mgmt and change topic so economic, social, legal and political, technological! ... Now I'm confused, and I don't think I've helped you either...

 

[pwettigurl]

I was just doing that question....I would have thought Business management and change as well....I think they were looking at the specific influences on global business as well as the global business strategy section of the syllabus....

I just hope Monday's exam is awesome!!!

 

[TomTom123]

Confusing question!!!

I wrote political e.g. government enticing you to expand with incentives?, financial interest rates freeing and tightening up capital, social being accepted?

I incorporated gletspc with amerticda

 

[krnofdrg]

These are all under external influences

Changing in level of local demand

- Changing nature of markets

-Changes in interest rates (Economic influence). Remember interest rates are changed by the Reserve Bank of Australia through the conduct of Monetary policy. Higher I/R mean it would cost more to borrow external funds. Meaning investment is more costly and may affect the business. High i/r may also mean the dollar is appreciating meaning it costs less to expand internationally. Vice versa.

Law and regulations (Legal influences)

 

[captain awesome]

Hey,
I emailed my teacher, she said Its just external sources of changes from topic one.
So I'm going to go with that.
Hopefully Mondays exam will be clearer lol
Good luck everyone

 

[michaeljennings]

Hey guys, my teacher made us do a practice essay plan for this question in class, and she marked mine and said it was good (She's an hsc marker by the way).
So here's my plan for the first part of the question

External Sources of Change for a Business Expanding Internationally
The changing nature of markets[FONT=&quot][/FONT]

• Globalisation has led to global customers, and a focus on online markets [FONT=&quot][/FONT]
• Fluctuations in prices for Australian commodities, can result in businesses sourcing from overseas markets[FONT=&quot][/FONT]
• Increased trade in Asia, where there are cheaper prices[FONT=&quot][/FONT]
• Transnational Corporations (TNCs) have taken advantage of these to establish large companies which span all over the world, [FONT=&quot][/FONT]
• Eg. JB Hi-Fi sources electronic goods from the international market, as it is cheaper. It is based in Australia, and retails online worldwide, and to both NZ and Aus through outlets[FONT=&quot][/FONT]

Economic Influences[FONT=&quot][/FONT]

• Fluctuations in level of economic activity can mean businesses can take advantage of situations in other countries, such as lower interest rates[FONT=&quot][/FONT]
• Eg. JB Hi-Fi trades in a range of currencies (AU, NZ, US), explain translational risk between projected profits in NZ and AUD if exchange rate changes[FONT=&quot][/FONT]

Financial Influences

• Deregulation of financial markets 1983, allowed foreign banks to enter Australian markets[FONT=&quot][/FONT]
• Businesses can rely on overseas financial institutions, not just domestic[FONT=&quot][/FONT]
• Eg. JB Hi-Fi borrowing from New Zealand, lower interest rates and good currency exchange rates[FONT=&quot][/FONT]

Geographic Influences[FONT=&quot][/FONT]

• Australia's location close to Asia-Pacific market, and also New Zealand[FONT=&quot][/FONT]
• Eg. JB Hi-Fi expanding to New Zealand [FONT=&quot][/FONT]

Social Influences[FONT=&quot][/FONT]

• Preference for electronic goods, which are cheaper to source from overseas
• Trend of spending time on the computer, and on the internet- online purchases from online retailers, especially those in the US[FONT=&quot][/FONT]
• Awareness and concern for sweatshop labour in developing nations[FONT=&quot][/FONT]
• Eg. JB Hi-Fi caters for many languages and tastes, but focuses on electronic goods, which is a social preference. [FONT=&quot][/FONT]

Legal Influences

• Government making laws such as GST, and other taxes and charges for online retailers based in Australia, which are not imposed on overseas businesses[FONT=&quot][/FONT]
• Regulations concerning safety, labelling, packaging, may be more lax in developing countries, which could result in lower costs of production
• Eg. JB Hi-FI supply contracts, many contracts as it sources from all over the world, need to clarify terms and conditions of all agreements. Also, breach of intellectual property laws is an indirect threat, may seek overseas markets to compensate for lower sales.

Political Influences

[FONT=&quot][/FONT]

• Reduction of barriers to international trade- tariffs, quotas and subsidies[FONT=&quot][/FONT]
• Growth of regional trading blocs- such as EU, APEC, NAFTA[FONT=&quot][/FONT]
• Development of WTO- World Trade Organisation encourages free trade[FONT=&quot][/FONT]
• Deregulation of domestic financial markets- removed restrictions on borrowing and lending, exchange rates and foreign investment[FONT=&quot][/FONT]
• Eg. JB Hi-Fi, this is extremely important for all global operations, as the company sources from many countries all over the world. Hence politics must be considered- benefits from CERTA between NZ and Aus, which encourages trade[FONT=&quot][/FONT]

Technological developments[FONT=&quot][/FONT]

• Rapid development of computer and communications technology, leads to efficiency when communicating on a global scale

• Technology to enable businesses to design, produce and distribute worldwide[FONT=&quot][/FONT]
• Eg. JB Hi-Fi customers are able to purchase online from anywhere in the world, where they can be efficiently delivered[FONT=&quot][/FONT]

 

[captain awesome]

^thanks for that