Business in Asia
“You've just finished negotiating the deal, and it's time for a celebration, drinks and dinner all around, and you go to bed only to wake up the next morning to learn that the other side wants to start all over again. Or you try to buy something - say a collection of antique vessels for resale for decorative uses – and you're told that the artifacts are yours but only for a price. You wonder, should I agree to pay a bribe just this once?”(Rhodes, 2003) Do any of these examples sound familiar? Well if you’re a company doing business in an Asian market, these are very common incidents.
This essay aims to shed light on the problems faced by Australian enterprises doing business in Asia. Problems such as cultural disparities, language barriers, competition form firms from Europe, the United States and Japan and other such barriers will be discussed in detail. Further, strategies pursued by these firms to counter these barriers will also be discussed. In the second part of the essay, a case study of an Australian firm operating in Asia will be conducted.
Exporting and foreign investment activity has long been a significant component in the Australian economy. “Foreign markets for Australian goods and services provide opportunities to increase national turnover, achieve economies of scale, diversify production and contribute to growth and employment” (ABS, 2006). Exporting is important to Australia. It helps pay for imports as the economy grows. The gains from trade enable a higher standard of living than Australians would otherwise enjoy. It is also a source of new ideas and knowledge for Australian businesses as they compete against the world’s best in the international market place (Lane, Philip & Milesi-Ferretti, 2001).
Asia ha ...