Essays on Australian Exporters Sometimes Fall into Errors and Misconceptions Case Study

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The paper 'Australian Exporters Sometimes Fall into Errors and Misconceptions' is a great example of a Business Case Study. There are some barriers that have been cited to influence the success of an export company (Australian Government, 2011). These include language barriers, the unpredictability of host markets, and ethical issues. In this paper the impacts of these barriers have been discussed. The paper has also discussed commonwealth bank as an example of successful Australian export company. From the analysis the bank has encountered many such as global recession and competition from other firms.

In spite of this; the firm has recorded excellent performance in recent times (Holt and Perren, 2009). The firm could overcome its current threats and weaknesses by coming up with innovative ways of improving its earnings, capitalization, and offshore expansion. 2. Introduction Language barriers, the unpredictability of host markets, and ethical issues are some of the impediments which hinder the success of export companies (Holt and Perren, 2009). This paper discusses these factors and provides a comprehensive discussion of the commonwealth bank as an example of a successful export company. 3.5.

Language In many instances managers allege that lack of in-house foreign language capability is an impediment to the firm’ s entry into international trade (Holt and Perren, 2009). Even though, foreign language skills are helpful when marketing and negotiating export agreements they are not essential for the success of the business in the export market (Australian Government, 2011). This is because firms can outsource translations and interpretations when correspondence and documents in English do not suffice. Thus what matters in the export market is the sound management of the business relationship rather than language abilities (Australian Government, 2011).

The success of Reg Drayton Wines exporters has been based on their management rather than the understanding of languages of host countries to where they export their products. 3.6. Prediction It is critical that any exporter understands that every market has different demands and that this demand changes over time (Holt and Perren, 2009). Most exporters who disregard this factor often fail in international markets. Thus firms need to understand market trends and demands in addition to the uniqueness, people’ s mentality, and business traditions of the export market in order for it to successfully develop the market.

Many factors bring about changes in the export market and firms intending to enter an export market ought to consider them (Australian Government, 2011). Some of the factors include technological, globalization, the abolishment of trade barriers, and softening of import/export regulations. This calls for firms to consider these factors when developing export strategies and tailor them in accordance with the current situation. The risk of the exchange rate is the most predominant risk in export business. Many studies have indicated that the exchange rate performance of a country may impact on the export marketing performance (Holt and Perren, 2009).

Thus, the attractiveness of an export market depends on its forex market. Risks of the exchange rate may cause a firm to incur losses in an operation which is otherwise profitable because of currency devaluation. This implies that when a firm is intending to enter a new export market it ought to equip itself with current trends in the target country forex market. This will help it to predict future changes in the forex market that may impact on the performance of the company in the export market.

According to macro-economic theory, the high value of the foreign currency in export markets results in a rise in foreign prices which reduces imports (Australian Government, 2011). This is based on the fact that a highly valued domestic currency in comparison to export market currency leads to a rise in prices of products in the target market which results in reduced demands for such products. Thus if the Australian currency has a higher value than the target market currency value, Australian firms may find it hard to sell their products in such markets due to reduced demand.

For instance, Renewal Wines Company was affected in 2007 by higher exchange rates. Even though wine importers flourished during this period, Renewal Wines Company encountered losses due to these exchange rates.


Anderson, K., and University of Adelaide. 2009. Australia's Economy in Its International Context: The Joseph Fisher Lectures I. Adelaide: The University of Adelaide

Australian Government. 2011. Trade, Import and Export. Available at

Common Wealth Bank. 2011. Home. Available at:

Faeth, I. 2010. Foreign Direct Investment in Australia: Determinants and Consequences. Sydney: UoM Custom Book Centre

Holt, J., and Perren, A. 2009. Media Industries: History, Theory, and Method. Sydney: Wiley-Blackwell Publishers.

International Monetary Fund. 2009. Export and Import Price Index Manual: Theory and Practice. New York: International Monetary Fund

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