Australian exporters sometimes fall into errors and misconceptions when conducting business around the world. Essay Example

Errors and Misconceptions Experienced by Australian Exporters in the Global Markets

Although the ubiquitous internationalization and emerging liberalization of business has enhanced the Australian exports industry, it is imperative that Australian businessmen often confront stifling trade errors and misconceptions that derail their success. Notably, such barriers faced by Australian exporters revolve around pertinent issues of language problems, market forecasting, and ethical issues as well.

As globalization liberates trade internationally, language and cultural factors become crucial influencers of international businessmen worldwide (Chris, Petterson, & La 2005). In a market that mainly deal with products from the secondary and tertiary sectors of the economy, more interpersonal encounters with potential international customers becomes inevitable especially in marketing national of regional products and services. The lack of universal market language implies that the international trade is characterized with language differentials. Particularly, although Australian businessmen use English as their first language, their transacting with foreign nationals such as Korean, Japanese, Chinese, and customers from non-English speaking countries present tremendous trade hurdles. For example, Australia’s exports of educational products and services to China have been marred with language problems because of the language barriers.

The performance of export business is dependent on currency exchange rates prevailing in the international financial markets. The exchange rate is determined by supply and demand of currency in the foreign exchange markets. Following the international preference of Australian dollar as a proxy for commodity prices, Australian international businessmen have been faced with the challenge of pricing their exports due to fluctuation of exchange rates in the international financial markets (Chris, Petterson, & La 2005). For example, the appreciation of Australian dollar implies increase in prices of Australian exports. Thus, overseas customers have been forced to spend money on their imports from Australia. In addition, the inflation rates greatly affect the export business in Australia. In this instance, higher inflation rates in Australia have made exports to be more expensive in comparison with overseas competitors such as China that keeps the Yuan devalued. This has often caused Australian international traders problems involving loss of export market. The appreciation of exchange rates occasioned by China’s unprecedented economic growth and resource boom in 2003 reduced the competitiveness of Australia’s manufactured exports.

In the international trade realm, marketing knowledge and market information are critical variables for demand forecasting. Precise prediction of foreign demand requires understanding of technical requirements of the targeted export segment. Therefore, accurate foreign demand forecasting should give a reliable estimate of product quantity to satisfy a given target foreign market. Australian exporters have occasionally fallen to errors and misconceptions occasioned by the use of inaccurate and untimely information in the prediction of foreign demand in their target market (Chris, Petterson, & La 2005). For example, Australia is mainly an exporter of intermediate goods, which are used as inputs in the production of final consumer goods especially in Asia. However, the exports have often found markets in Japan, North America, and the EU markets. In addition, Japan, which is claimed to be a key export market for Australia’s products, is being overtaken by China. The unparalleled economic growth in China is posing threat to the competitiveness of manufactured goods from Australia in the international market. Lack of or possession of distorted information about the mentioned concerns of Australian exports derails performance of Australian international businessmen

Worthy noting here is that ethical issues have also presented challenges for Australia’s export performance. With the growth of international trade, organizations are compelled to adopt ethical practices that govern production processes, transportation, and distribution of trade objects. Despite the existence of the Foreign Corrupt Practices Act, the Australian exporters are often entangled in corrupt practices of bribing foreign government officials (Chris, Petterson, & La 2005). For example, the Australian Wheat Board (AWB) officials have been implicated for facilitating questionable payments to Iraqi government officials, an act that contravenes international business law on ethics. In addition, the export of live animals to Indonesia and the Middle East has been a contentious ethical issue affecting Australian exporters. Activist groups have pressurized the government to ban the lucrative trade on the ground that animals should not be subjected to long voyages. The issues arise due to the way different cultures treat animals and have caused the suspension of live animal exports in Australia, a move that has disgruntled Australian exporters. Ethical issues also arise where most Australian companies take their manufacturing branches offshore for selfish intentions of reducing cost of production by capitalizing on cheap labour.

To conclude, although the internationalization of trade has enhances exports in Australia, the country’s businessmen are confronted with issues of language barriers, misconceptions, market errors as well as matters of ethical concern.


Chris, S, Petterson, P & La,V 2005, ‘Executive insights: exporting services to Southeast Asia: Lessons from Australian knowledge-based service exporters’,
Journal of International Marketing, Vol. 13, no.4, pp.104-128.