Regulatory And International Business Environment Assignment Sample

1.0 Introduction

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The regulatory and international business environment is a difficult and dynamic geography that particularly impacts global business. In a generation represented by growing globalization and affiliated economies, industries must helm geopolitical elements, trade agreements, and a web of regulations. These factors shape the laws governing ‘cross-border operations, investment, and trade. Comprehending the ‘regulatory and international business environment is important for businesses aiming to grow their reach and stay competitive in the international marketplace. This environment contains trade policies, intellectual property rights, tariffs, legal frameworks, and more, making it crucial for businesses to adjust and yield with the ever-evolving laws and regulations to succeed in the international phase.

2.0 Discussion

2.1 Macroeconomic Policy Environment

The circumstances play a vital role in shaping the general financial requirements of the country, with important substances for different industry sectors, including the Australian Retail Trade sector, which contains barrooms, pubs, taverns, cafes, and restaurants (Clark, et al. 2023). This summary will analyses the essential parts of Australia's macroeconomic policy environment and their possible importance for the trades working in this sector.

Monetary Policy:

The ‘Reserve Bank of Australia is accountable for establishing monetary policy. In current years, the RBA has possessed historically low interest rates to spur monetary development. This policy has directed advanced customer spending and acquisition, which can help interactions in the retail business sector. Low interest rates can stimulate customers to borrow and pay, and corporations to support development and advancements. Yet, it can also lead to inflation, which may boost prices for companies and decrease customers' buying power.

Figure 1: RBA Monetary Policy Statement September 2023

(Source: www.babypips.com)

Implications for the Retail Trade Sector:

• Low-interest rates can raise customer spending in cafes and restaurants.
• Companies may be keener to fund developments and renovations.
• The threat of inflation could raise working expenditures for trades.

Fiscal Policy:

Governance and tax spending are impacted by the Australian government's fiscal strategy. In response to financial fears, the government implemented several forms of stimulation during the period of the "COVID-19 pandemic," such as organic trade payments and "JobKeeper earnings." Particularly during times of economic turbulence, these judgments have had a big impact on the retailing industry.

Implications for the Retail Trade Sector:

• Encouragement measurements can deliver a lifeline to companies during financial troubles.
• Diminished customer trust during delays can still (Clayton, et al. 2020) influence spending in the sector.
• High government debt from stimulation actions might guide future fiscal constraints.

Exchange Rate Policy:

Australia's exchange rate policy has an effect on companies that depend on imported goods or mark global markets. A robust Australian dollar can drive importance more affordable but may also decrease the competitiveness of Australian exports.

Implications for the Retail Trade Sector:

• A robust Australian dollar may lead to more inferior set prices for imported goods.
• Exports may encounter challenges in global markets due to more powerful money.

Trade Policy:

Trade agreements and global trade policies have multiple convincing on the retail business sector. Bilateral and multilateral agreements can extend new markets and decrease trade obstacles, helping businesses that export or import developments.

Figure 2: Trade and investment at a glance 2020

(Source: www.dfat.gov.au)

Implications for the Retail Trade Sector:

• Trade agreements can deliver possibilities for multinational development.
• Transformations in trade policies can influence the availability and price of imported goods.

Regulatory Environment:

Government regulations play a powerful part in the retail business sector, especially in regions like food safety, alcohol licensing, and health and safety norms (Colbert, et al. 2020). Regulatory modifications can involve trade processes and keeping expenditures.

Implications for the Retail Trade Sector:

• Developing restrictions may demand interactions to adjust to new ideals.
• Compliance expenditures can increase with more stringent regulatory prerequisites.
• Labor Market Policies:

abor policies, including lowest pay laws, workplace restrictions, and immigration procedures, can affect the availability and cost of delivery for enterprises in the retail business sector.

Implications for the Retail Trade Sector:

• Transformations in work procedures may involve the expense of engaging and including workers.
• Labor needs or excesses can result from immigration procedures

• Environmental and Sustainability Policies

Australia's emphasis on sustainability and environmental problems is increasing. Policies linked to environmental benchmarks, waste control, and power efficiency (Fratto, et al. 2021) can impact the retail trade sector, particularly in terms of keeping and customer choices.

Implications for the Retail Trade Sector:

• Businesses may require support in sustainability efforts to satisfy regulatory conditions.
• Customer choices for bearable outcome scans impact business plans.

In summary, the current Australian macroeconomic policy background is active and has important substances for the Australian Retail Trade sector, surrounding pubs, bars, taverns, cafes, and restaurants. The interplay of economic procedure, fiscal policy, business rates, business policies, rules, labour guidelines, and environmental considerations produces a complicated functional background. Companies in this sector must remain awake, adjust to policy transformations, and stay attuned to consumer choices to succeed in this ever-changing terrain. Government help during financial problems can be a lifeline, but companies should also be designed for the possible long-term values of policy findings, such as inflation, augmented compliance expenditures, and modifications in customer manners.

2.2 Targeted Policy and Regulatory Environment

The Australian regulatory environment and targeted policy significantly affect the business climate of different sectors, including the ‘Australian Retail Trade sector, which contains pubs, taverns, restaurants, cafes, and bars. One important regulation and policy that has instantly affected this sector is the Regulation Framework and Alcohol Licensing.

2.2.1 Alcohol Licensing and Regulation Framework

The sale and alcohol consumption are prominent in the procedures of multiple businesses within the ‘Australian Retail Trade sector, significantly in the pubs, bars, etc. subcategory. The Regulation Framework and Alcohol Licensing contain different laws and regulations desired to control the distribution and sale of alcohol (Gross, et al. 2022). These approaches are set and implemented by both national and state governments, and they have radical substances for industries in this sector.

Figure 3: Frequency of alcohol consumption among individuals 14 and older in Australia from 2013 to 2019

(Source: www.statista.com)

2.2.2 Analysis of the Impact

Licensing Requirements: The framework demands that businesses must receive the essential licenses to trade alcohol. Further varieties of licenses are available, containing special event licenses and liquor licenses. Accepting and holding these licenses can be a difficult and expensive procedure. This affects the business climate in various ways i.e.

Costs: Businesses must endure the financial responsibility of using and resuming licenses, and the costs conflict depending on the classification of location and license. Adherence to licensing conditions also affects expenses like training staff and enforcing security benchmarks.

Compliance: The regulatory framework needs businesses to stick to rigid compliance benchmarks, including ‘responsible service of alcohol training (Hügel, et al. 2020) and holding safe speculations. Failure to fulfil these benchmarks can result in revocation, suspension, or fines of licenses.

Operational Impacts: The regulations impact the daily functions of taverns, pubs, and bars. They are required to confirm that they stick to trading hours, age verification, and reliable service of alcohol. This can specify their flexibility and possibly decrease their profitability.

Trading Hours: The framework frequently imposes constraints on the trading hours of industries selling alcohol. This regulation instantly affects the revenue possibility of pubs, taverns, and bars:

Reduced Operating Hours: Businesses may need to complete early in the evening, affecting their capability to serve consumers during prime hours, like ‘late at night. This regulation can have a natural financial impact.

Impact on Nightlife: Limiting trading hours may impact the energy of the entertainment stage and nightlife, possibly discouraging consumers from these establishments.

Responsible Service of Alcohol: The framework highlights reliable service of alcohol, directing staff to be experienced in RSA (Kolios, 2020). This regulation is critical for securing the safety of consumers and confining alcohol-related damage:

Training Costs: Businesses must finance RSA training for their workers, which can be both costly and time-consuming.

Reduced Risk of Incidents: On the positive, RSA training aids in decreasing alcohol-related incidents and possible legal drawbacks for businesses.

Preventing Underage and Excessive Drinking: The framework contains rigid regulations concerning age verification and controlling extreme alcohol consumption:

Challenges in Implementation: Confirming that consumers are of legal drinking age and observing alcohol consumption can be difficult and need further resources and staff.

Compliance Benefits: Yielding with these regulations helps safeguard businesses from legal significance and sustains a secure environment for consumers.

2.3 International Trade Environment

Australia's international trade climate is distinguished by various key components that contribute particularly to the country's economy, (Li, et al. 2019) with both direct and indirect implications for the emphasis sector i.e. ‘Australian Retail Trade sector, encompassing cafes, restaurants, taverns, pubs, and bars.

Exports and Imports:

Australia is a major performer in global commerce, comprehended for its export-oriented economy. It is a significant exporter of goods like agricultural products, services, and minerals. These exports contribute to the nations broad economic growth, which, in turn, has an indirect effect on the retail sector.

Figure 4: Australia Import Data

(Source: www.exportgenius.in)

Direct Contribution to the Focus Sector: The export of Australian spirits and wines instantly profits the focus sector, as these products are frequently featured in restaurants, bars, and pubs.

Indirect Contribution to the Focus Sector: Healthy export-oriented initiatives, such as agriculture and mining, support income and employment, which can summaries into higher customer spending in restaurants and cafes.

Bilateral and Multilateral Trade Agreements:

Australia has a chain of trade contracts with different regions and countries, including the ‘Australia-United States Free Trade Agreement and the ‘Progressive and Comprehensive Agreement for the Trans-Pacific Partnership (Löscher, et al. 2023). These contracts enable international trade, lower trade borders, and stimulate economic expansion.

Direct Contribution to the Focus Sector: Trade contracts may direct to raise imports of ‘food and beverages, which can instantly profit the retail sector by delivering access to a broader spectrum of products.

Indirect Contribution to the Focus Sector: Improved trade connections foster economic strength and growth, which can increase customer confidence and expand the retail trade sector.

Currency Exchange Rates:

Changes in currency exchange rates can particularly affect global trade. A robust Australian dollar can make Australian exports more costly, possibly decreasing demand for particular goods and benefits, along with those in the retail trade sector.

Direct Contribution to the Focus Sector: An assertive Australian dollar can direct to decreased demand for made-in Australian products in global markets (McFarlane, et al. 2020), affecting the export-oriented segment of the focus sector.

Indirect Contribution to the Focus Sector: Currency exchange rates can also affect the price of imported goods operated in the focus sector, like restaurant equipment or alcohol consumption.

2.4 Geo-Political Environment

Australia, known for its various landscapes and distinctive wildlife, is meeting a significant challenge in the shape of climate risk. In the future decades, the nation is anticipated to notice ongoing changes in its climate and weather patterns. These changes include reduced winter rainfall in eastern and southern agricultural areas, more years of severe heat, rarer but more increased intensity tropical cyclones, and lengthier fire seasons (Prosser, et al. 2021). While these issues which are related to climate, impact different sectors of the ‘Australian economy, one sector that is specifically weak is the Australian Retail Trade sector, enclosing taverns, restaurants, pubs, cafes, and bars.

Climate risk has arisen as an effective geopolitical problem due to its far-reaching effects on different elements of business in the ‘Australian Retail Trade sector.

Figure 5: Natural disasters and climate risk

(Source: www.aph.gov.au)

Supply Chain Disruptions: Climate-related severe weather circumstances, like lengthy shortages and bushfires, can obstruct supply chains in the agricultural sector, affecting the accessibility of fresh crops. Cafes and Restaurants depend heavily on a constant supply of quality components, and disorders can lead to expanded costs and decreased menu choices.

Consumer Behavior Changes: As climate problems intensify, customers are evolving more aware of their environmental effects and carbon footprint. This has led to varying affections in the types of industries they sustain. Sustainable and eco-friendly cafes and restaurants are accumulating favour, which sets anxiety on traditional businesses to adjust or risk yielding consumers.

Regulatory Challenges: The Australian government has been putting laws and rules into effect that are meant to combat climate change and lessen its effects (Xie, et al. 2019). Such as establishing emissions reduction goals, providing financial incentives for companies, and requiring environmental reporting that reduces their carbon impact. Companies in the retail segment may find it expensive and difficult to comply with these laws.

Rising Energy Costs: Extreme heat waves may result in higher energy costs for cafes' and restaurants' refrigeration and cooling systems. Expanded energy costs have a natural effect on these firms operating costs, possibly lowering their margins of profit.

Insurance and Financial Risks: The occurrence of climate-related disasters, like bushfires and floods, has raised the expense and problem of acquiring insurance. Firms in the retail trade industry might have to pay higher rates or have less coverage, which could put their finances at risk in the case that natural disasters cause damage.

Firms in the Australian retail trade industry are increasingly focused on environmental and resilience to climate change to meet these problems. They are taking action, acquiring energy from renewable sources, and operating eco-friendly methods to preserve energy and water. Furthermore, some industries are adjusting their meal offerings to contain more plant-based alternatives and cutting down on wasted food in order to adjust to changing consumer tastes.

3.0 Conclusion

The ‘regulatory and international business environment is a key factor in the current corporate geography. Businesses that anticipate engaging with and adjusting to these dynamic aspects are nicely placed for success in the international marketplace. Remaining compliant, informed, and agile is important in maximizing global possibilities while mitigating risks.

References

Journals

• Clark, G.L. and ONeill, P., (2023). An economic and financial geography of the Australian superannuation industry. Geographical Research. Retrieved From: https://onlinelibrary.wiley.com/doi/pdfdirect/10.1111/1745-5871.12611 [Retrieved On: 10.10.2023]
• Clayton, S. and Karazsia, B.T., (2020). Development and validation of a measure of climate change anxiety. Journal of Environmental Psychology, 69, p.101434. Retrieved From: https://www.sciencedirect.com/science/article/pii/S0272494419307145 [Retrieved On: 10.10.2023]
• Colbert, S., Wilkinson, C., Thornton, L. and Richmond, R., (2020). COVID?19 and alcohol in Australia: industry changes and public health impacts. Drug and alcohol review, 39(5), p.435. Retrieved From: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7300689/ [Retrieved On: 10.10.2023]
• Fratto, C., Vannier, B.H., Mircheva, M., de Padua, D. and Ward, M.H.P., (2021). Unconventional monetary policies in emerging markets and frontier countries. International Monetary Fund. Retrieved From: https://elischolar.library.yale.edu/cgi/viewcontent.cgi?article=14480&context=ypfs-documents [Retrieved On: 10.10.2023]
• Gross, I. and Leigh, A., (2022). Assessing Australian Monetary Policy in the Twenty?First Century. Economic Record, 98(322), pp.271-295. Retrieved From: https://onlinelibrary.wiley.com/doi/pdfdirect/10.1111/1475-4932.12689 [Retrieved On: 10.10.2023]
• Hügel, S. and Davies, A.R., (2020). Public participation, engagement, and climate change adaptation: A review of the research literature. Wiley Interdisciplinary Reviews: Climate Change, 11(4), p.e645. Retrieved From: https://wires.onlinelibrary.wiley.com/doi/pdfdirect/10.1002/wcc.645 [Retrieved On: 10.10.2023]
• Kolios, B., (2020). Australian household debt and the macroeconomic environment. Journal of Economic Studies, 48(1), pp.21-34. Retrieved From: https://ses.library.usyd.edu.au/bitstream/handle/2123/22359/Kolios_PDF_Proof.pdf?sequence=2 [Retrieved On: 10.10.2023]
• Li, A., Michaelides, M., Rose, M. and Garg, M., (2019). Climate?related risk and financial statements: implications for regulators, preparers, auditors and users. Australian Accounting Review, 29(3), pp.599-605. Retrieved From: https://incp.org.co/Site/publicaciones/info/archivos/2019%20Australian%20Accounting.pdf [Retrieved On: 10.10.2023]
• Löscher, A. and Kaltenbrunner, A., (2023). Climate change and macroeconomic policy space in developing and emerging economies. Journal of Post Keynesian Economics, 46(1), pp.113-141. Retrieved From: https://www.tandfonline.com/doi/abs/10.1080/01603477.2022.2084630 [Retrieved On: 10.10.2023]
• McFarlane, D., George, R.I.C.H.A.R.D., Ruprecht, J.O.H.N., Charles, S. and Hodgson, G., (2020). Runoff and groundwater responses to climate change in South West Australia. Journal of the Royal Society of Western Australia, 103, pp.9-27. Retrieved From: https://www.researchgate.net/profile/Don-Mcfarlane/publication/349337351_Runoff_and_groundwater_responses_to_climate_change_in_South_West_Australia/links/602b5d3ca6fdcc37a82c1b5e/Runoff-and-groundwater-responses-to-climate-change-in-South-West-Australia.pdf [Retrieved On: 10.10.2023]
• Prosser, I.P., Chiew, F.H. and Stafford Smith, M., (2021). Adapting water management to climate change in the Murray–Darling Basin, Australia. Water, 13(18), p.2504. Retrieved From: https://www.mdpi.com/2073-4441/13/18/2504/pdf [Retrieved On: 10.10.2023]
• Xie, B., Brewer, M.B., Hayes, B.K., McDonald, R.I. and Newell, B.R., (2019). Predicting climate change risk perception and willingness to act. Journal of Environmental Psychology, 65, p.101331. Retrieved From: http://www.columbia.edu/~rim2114/publications/Xie_Brewer_Hayes_McDonald_Newell-2019.pdf [Retrieved On: 10.10.2023]