While threats of terrorism, human rights issues, bribery and corruption are some of Australia’s risk factors they are small compared to other countries. Financial managers wishing to maximize the profitability, net cash flows, and market value of their firms should consider Australia’s foreign exposure approach. In this essay, I will discuss some of Australia’s key business risk elements and why firms should continue to investment or seek to expand their operations within this market.
Business Risks in Australia First, Australia’s is idea for firms wanting to increase their ability to make as much money as possible, increase their net cash flow, and extend their market value is their economy. Even though growth in Australia is currently growing at a slower pace than previous years, GDP growth will continue to be positive well into 2016. According to UK’s Foreign &
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Furthermore, the Central Intelligence Agency, describes how important Australia’s service sector which is 70% of its GDP and 75% of the jobs in Australia (2015).
Australia’s Trade Risk Secondly, Australia’s is idea for firms wanting to increase their ability to make as much money as possible, increase their net cash flow, and extend their market value is trade. Australia’s trade market is very open with low restrictions on its major imports and exports commodities (Central Intelligence Agency, 2015). United Kingdom’s Foreign & Commonwealth Office promotes Australia’s strong belief in trade agreements and their ability to partner with other countries such as the UK and the United States while expanding trade in Asian