Incentives for international trade
The Export Market Development Grants (EMDG) scheme is a key Australian Government financial assistance program for aspiring and current exporters. Administered by Austrade, the scheme supports a wide range of industries.
The EMDG Scheme:
- Encourages small- and medium-sized Australian businesses to develop export markets
- Reimburses up to 50 per cent of eligible export promotion expenses above $5,000 provided that the total expenses are at least $15,000
- Provides up to eight grants to each eligible applicant
Austrade also assists businesses by:
- Providing information about international markets and trends
- Arranging meetings with potential clients and partners
- Providing ongoing support and information
Global Business Ethics
Investors, consumers, governments and the community all expect businesses to act ethically. Businesses are not solely for profit earnings but also expected to be good global citizens with social and economical influences that helps raise the standard of living, both domestically and globally.
Global business ethics include offshoring, environmental responsibility, outsourcing, dumping and Fair Trade.
Offshoring is the relocation of a business process from one country to another—typically an operational process, such as manufacturing, or supporting processes, such as accounting. This is often done to take advantage of more favorable conditions in a foreign country, such as lower wage requirements or looser regulations, and can result in significant cost savings for the business.
Environmental responsibility is the duty that a company has to operate in a way that protects the environment. Many Australian businesses and organisations are responding by managing their environmental impact. This includes reducing use & waste, recycling of resources such as paper and water, and managing their carbon footprints and carbon offsets.
Carbon trading is an exchange of credits between nations designed to reduce emissions of carbon dioxide. The carbon trade allows countries that have higher carbon emissions to purchase the right to release more carbon dioxide into the atmosphere from countries that have lower carbon emissions.
Outsourcing is a practice in which an individual or company performs tasks, provides services or manufactures products for another company – functions that could have been or is usually done in-house. Outsourcing is typically used by companies to save costs. A company can benefit from outsourcing because they are using a business that specializes in a particular function, such as having an expertise that the company does not have. Because of outsourcing, the company can focus more on its customers and core business activities.
Dumping is the export by a country or company of a product at a price that is lower in the foreign market than the price charged in the domestic market. As dumping usually involves substantial export volumes of the product, it often has the effect of endangering the financial viability of manufacturers or producers of the product in the importing nation.
Fair Trade is a trading partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers, and to set fair prices for farmers and producers , improving their working conditions and educate farmers about sustainable farming methods.