Bme chapter notes

• Grants


  Government departments such as Austrade provide financial assistance to help encourage export development to other countries
• Grants


  • Used to reduce upfront costs for businesses that want to expand internationally
  • Makes expansion more financially viable
• Grant


  • Export Market Development Grant (EMDG)
• Export Market Development Grant (EMDG)

  • A key Australian Government financial assistance program for aspiring and current exporters
  • Encourages small and medium-sized Australian businesses to develop export markets
• Export Market Development Grant (EMDG)

  1. Reimburses up to 50 per cent of eligible export promotion expenses above $5,000

  2. Provided that the total expenses are at least $15,000

  3. Provides up to eight grants to each eligible applicant
• Taxation incentives are not that important
• Exports being exempt from the goods and services tax (GST)

  Tax incentive for exporters
• Duty Drawback Scheme


  Allows exporters to claim refunds on customs duty they have paid
• Tax incentives for research and development expenditure

  Through the Australian Taxation Office
• Duty Drawback Scheme


  Enables exporters to obtain a refund of customs duty paid on imported goods where those goods will be treated, processed, or incorporated in other goods for export
• Tradex Scheme


  • An alternative to Duty Drawbacks, this is a cash flow benefit for importers who intend to export goods
  • They do not have to pay the relevant customs duty or GST at the time of import
• WTO


  Organisation that sets standards for international trade and rules of Free Trade Agreements (FTAs)
• WTO rules for FTAs

  • Eliminate tariffs and other restrictions on all trade in goods between member countries
  • Eliminate substantially all discrimination against service suppliers from member countries
• WTO


  • Sets standards of transparency of trade partners
  • Lowers barriers for increased access to the global market
  • Helps facilitate trade agreements
  • Resolves conflicts if they arise
• Loss of jobs


  Use of labour in developing world in such things as low-cost manufacturing and services
• Labour shortages


  Movement of highly skilled people chasing opportunities in the developing world
• Increased employment


  Increased economic activity
• Increased employment


  Use of technology in outsourcing operations such as call centres and support services