Book contents
- Frontmatter
- Contents
- Figures and Tables
- Preface
- Abbreviations
- Chapter 1 An Introduction to the Export and Import of Goods and Services
- Chapter 2 Contracts for the International Sale of Goods
- Chapter 3 Incoterms
- Chapter 4 Payment
- 5 Transport of Exported Goods
- Chapter 6 Cargo Insurance
- Chapter 7 Customs
- Chapter 8 Exporting through an Overseas Representative
- Chapter 9 Exporting via Licensing and Franchising Arrangements
- Chapter 10 Exporting via an Overseas Business Presence
- Chapter 11 Dispute Settlement
- Chapter 12 Exporters and the WTO
- Index
Chapter 10 - Exporting via an Overseas Business Presence
Published online by Cambridge University Press: 05 September 2012
- Frontmatter
- Contents
- Figures and Tables
- Preface
- Abbreviations
- Chapter 1 An Introduction to the Export and Import of Goods and Services
- Chapter 2 Contracts for the International Sale of Goods
- Chapter 3 Incoterms
- Chapter 4 Payment
- 5 Transport of Exported Goods
- Chapter 6 Cargo Insurance
- Chapter 7 Customs
- Chapter 8 Exporting through an Overseas Representative
- Chapter 9 Exporting via Licensing and Franchising Arrangements
- Chapter 10 Exporting via an Overseas Business Presence
- Chapter 11 Dispute Settlement
- Chapter 12 Exporters and the WTO
- Index
Summary
Previous chapters have discussed in detail the procedures and legal issues confronting a firm when it exports directly to an overseas customer or through agents or distributors as intermediaries. This chapter discusses the issues facing a firm that intends to establish a presence in an overseas country to support its export efforts or to facilitate imports from that country.
A number of legal and procedural issues arise in establishing an overseas presence. First, the firm needs to be clear why it is establishing an overseas presence to assist its export efforts rather than adopting an alternative strategy. If an overseas presence appears profitable, the firm needs to weigh up the options of establishing a completely new entity or acquiring an existing business, provided this latter option is allowed by the country's investment rules. If a new entity is necessary then a decision has to be made whether to establish a joint venture, a branch or a subsidiary. Regardless of the type of entity that is proposed, the firm will need to assess the political and economic risks of doing business in the overseas country, the process for obtaining approval to commence business, company establishment procedures, and the operating environment, which includes regulations for employing local and expatriate personnel, importing and exporting, and borrowing and capital repatriation. Finally, the firm needs to weigh up the taxation implications.
This chapter therefore aims to impart an understanding of:
the rationale for an overseas presence to assist export efforts;
the various types of entity that can be formed and the advantages of each;
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- Information
- Australian ExportA Guide to Law and Practice, pp. 233 - 264Publisher: Cambridge University PressPrint publication year: 2006