GLOBAL YEAR 9 – STAGE

BUSINESS 5
NSW COMMERCE YEAR 7 – 10
SYLLABUS
DEFINITION OF GLOBAL MARKET

MARKE
GLOBE
T
 The activity of buying or selling goods and
services in all of the countries existed in the
world

GLOBAL
MARKET
As each country is unique, any business that
wishes to sell in the global marketplace
must be aware of the unique differences and
specific risks that exist when expanding into
another country
 CURRENCY RISKS
RISK
ASSOCIATE
D WITH POLITICAL RISKS

SELLING
TO LEGAL RISKS
GLOBAL
MARKETS
SOCIAL AND CULTURAL RISKS
 CLASS ACTIVITY 1

EACH GROUP WILL BE

GIVEN 1 $10
AUSTRALIAN DOLLARS
MAKE A GROUP OF 5
NOTE AND 1 $10
AMERICAN DOLLARS
NOTE

IDENTIFY THE
SIMILARITIES AND
5 MINUTES TIME LIMIT
DIFFERENCES BETWEEN
THOSE 2 NOTES
 CURRENCY RISKS
■ Each country has their own currency, which is used for
domestic purposes
■ When transactions are conducted on a global scale, one
currency must be converted to another currency using the
“foreign exchange rate”
– If an Australian business sell products to a Japanese
business, they will have to pay in Australian Dollars,
not in Japanese Yen
■ Exchange rates fluctuate over time due to variations in
demand and supply
■ Exchange rates fluctuation will affect the profitability and
production costs

• Domestic – National scale

• Foreign Exchange Rate – the ratio of one currency to another which is used to
measure how much a unit of one currency is worth in terms of others
• Fluctuate – to change frequently between one level and another
POLITICAL RISKS

■ Any political event which results in a drastic

change to the country’s business
environment
■ Generally has negative impacts on business
operations and profit
■ Examples:
– US President Donald Trump has
recently banned Huawei which is one of
the biggest global technology company
from China from doing business with
US companies
LEGAL RISKS
■ Global businesses is affected by many thousands of
laws and regulations because each country has its
own unique sets of laws and legal systems
■ Poses numbers of risks in the areas of:
– Contract law – The methods of enforcing
contracts
– Legal disputes – Complicated due to
differences in legal systems and culture
– Intellectual property rights – Weak protection
could cost global business a great deal of
money

Intellectual Property – property that is created by an individual’s intellect such as songs, poems and novel
 CLASS ACTIVITY 2

ROLE PLAY WITH 2 STUDENTS AS VOLUNTEERS

ROLE PLAY ASSUMPTIONS:

Student with the ability to speak other language than English providing one sentence with the
other student trying to interpret what it means
SOCIAL AND CULTURAL RISKS
■ As Global Businesses operate in a worldwide scale, the staffs are
working in societies and cultures that differs from their own
■ It is highly important that globally business people completely
understand and appreciate the social and cultural traditions of the
countries they deal with
■ Failure in doing so could result in embarrassments and the lost of
business opportunities
■ Examples:
– Language Barriers
– When having a meal in Malaysia or Singapore, it is
considered rude to left any food on the plate. While in
Egypt, it is considered impolite not to leave some food on
the plate
 GLOBAL MARKET
The activity of buying or selling goods and services
TODAY’S in all of the countries existed in the world

LESSON
QUICK
RECAP Risk associated with selling at global
markets:
Social and
Currency Political Legal
Cultural
Risks Risks Risks
Risks
NSW COMMERCE YEAR 7 – 10
SYLLABUS