Risk Management - International Trade Essay Example | Topics and Well Written Essays - 3000 words

Risk Management - International Trade - Essay Example Wikipedia explains the process of risk identification, "After establishing the context, the next step in the process of managing risk is to identify potential risks. Risks are about events that, when triggered, will cause problems. Hence, risk identification can start with the source of problems, or with the problem itself." A similar condition comes under scrutiny when Australia considers to invest in UK. It is not only about another country, but about another continent, another culture, another geopolitical scenario. So the economic stance takes somewhat of a back seat unless other important issues are taken care of. Under mentioned is an analysis of the investment scenario in UK vis--vis Australia, and what can be the most effective strategy for market research in the former. Nothing negative, but factually speaking, when one has to conduct marketing research and ultimately trade in a country, it is very important to consider the political scenario within the country. Based on Australia's position in the Commonwealth, Australian relations with UK are active. As the current Chair in Office of the Commonwealth, UK plays a substantial role in Commonwealth affairs creating opportunities for close participation with Australia in a broad range of Commonwealth issues. These issues are imperative to be considered, as any country that wants to invest elsewhere, must undergo this process. As is evident, it cannot be accomplished without help and expertise from the localities. Keeping all this in view, it only seems rational and pragmatic to rely as much as possible on UK market researchers. The fact of the matter remains, that it is not a country with an ideal infrastructure of communication and regulations. Therefore, the theoretical marketing research that a book of marketing may teach, may not be wholly applicable upon UK. The importance of local knowledge in this instance cannot be over emphasised. Hence, in the execution phase, certain modalities of risk inference may differ inherently. That is by no means a flaw, but actually a characteristic in its own