Discuss about the International Business for Fletcher International Exports.
In current state of international business, the rise of the ethical business has become much significant. The growth of the business ethics has the steady growth with the rise of the international business. According to Sidani (2015), the emergence of advanced technologies like internet has transformed the international business much viable. The study will focus on the maintenance of the international business ethics in special reference with the case scenario of Fletcher International Exports Pty Ltd. It is a family company that supplies the Halal Slaughtered Sheep and Lamb meant from Australia to North African and Middle East Countries (Fletchint.com.au 2017).
Background of the Company
Fletcher International Exports is the family owned company that supplies the Halal Slaughter Meat from Australia to the countries of North Africa and Middle East. The company is located in different locations in Australia, such as Western Australia, New South Wales, Narrikup, and Dubbo. The company has the vast capacity of slaughtering, processing and directly marketing the slaughtered meats over 4 million every year. The company even has the adequate and wide knowledge in regards to the trading and working with both the region and government. The region has even consistently comprised almost 25-33% of the business as far as the revenue is concerned (Buywesteatbest.org.au 2017).
Mission of the Business
It has been observed that Australia has the scope to export the beef and Halal Meats to the Middle East and North Africa. However, the restriction from the government is controlling the slaughter system and the exporting process of the slaughtered meats to other countries. However, the exporting business of the slaughtered meats would be beneficial enough in increasing the economic value of the Australian country (Buywesteatbest.org.au 2017). Moreover, the direct exporting with Middle East and North Africa will also consider a greater scope to grow in this business. Therefore, the company is focusing on minimising the issues related to the trade barriers and the government approvals. The mission of the company is to establish the legalised business by targeting other countries even. The company also aims at promoting the future growth in an efficient way.
Managing Country Risks
It is to be indicated that the business expansion is justified if the foreign countries have been offering the higher profit. In order to undertake the international business process, some of the major obligations are also much concerned (Tan & Ko 2014). The case scenario is also ensuring the recognisable country risks in order to export the Australian Halal slaughtered meat to the Middle East and North African countries. However, as per the case scenario, some of the country risks are identified. These identified risks are discussed further:
- Australia is a Christian country with a minimal amount of Muslims. Hence, the restrictions come from the government in exporting the Halal Slaughtered beef and lamb to the other countries (Kolk 2016).
- The Australian farming sector is also facing some of the recognisable risks in technical and trading aspects.
- The legalised documents are necessary from all embassies in Canberra except Saudi Arabia.
- It is necessary to pay almost 250% tariffs in Morocco to export beef and sheep meat.
- In order to export the meat to Turkey, the tariff rate will be 225% (Farouk et al. 2014).
- The limited expiry on the chilled beef and sheep meat is also restricting the export business for the Australian business.
- The trouble with the food security is also one of the major concerns.
Most of the risks that Fletcher International Exporting is facing are concerned with the restriction of the Australian government in exporting the halal slaughtered meats to the different countries. Being a Christian country, Australian government does not permit the Australian firms to deal with the Islamic food cultures. However, apart from such risks, the barriers in the tariff rates and trading aspects are also creating more obligations for the company. However, eliminating these risks would consider fair dealing with the Middle East and North African countries for which Australian firms would be able to avail the opportunities in ensuring the economic growth.
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