This unit applies to individuals who wish to investigate business opportunities outside Australia through offshore licensing. The activity could be undertaken by an owner/manager of a business or someone with a brief to investigate such opportunities.

The unit does not cover scanning international markets to choose a country with which to do business. That area is covered in BSBINT403B Research international markets.

ELEMENT

PERFORMANCE CRITERIA

1. Identify international business opportunities

1.1. Investigate and identify business opportunities

1.2. Undertake a feasibility study to determine likely business viability

1.3. Identify specialist services and sources of advice where required

2. Identify business skills

2.1. Identify and take into account financial and business skills available in the identified country or countries when researching business opportunities

2.2. Access technical competencies required to take up identified business opportunities in the specific country or countries

2.3. Assess personal skills/attributes and match these against those perceived as necessary for a particular business opportunity

2.4. Identify, assess and document business risks according to resources available

Required skills

research and data collection skills to maintain knowledge of potential opportunities

communication and negotiation skills to obtain information on opportunities from colleagues.

Required knowledge

identification and overview knowledge of key provisions of relevant legislation from all levels of government that affects business operations, codes of practice and national standards, such as:

International Commercial Terms (INCOTERMS)

trade modernisation legislation: Customs Legislation Amendment and Repeal Act, Import Processing Charges Act, Customs Depot Licensing Charges Amendment Act

Trade Practices Act

Warsaw Convention

World Trade Organization determinations

cultural aspects relevant to target markets

principles of risk management relevant to the business opportunities.

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the following is essential:

research that has led to decisions about taking up international business opportunities

accessing different sources of information

documenting outcomes of research

knowledge of relevant Australian, international and local legislation.

Context of and specific resources for assessment

Assessment must ensure:

access to an actual workplace or simulated environment

access to office equipment and resources

access to relevant workplace documents

access to information sources used by candidate.

Method of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:

direct questioning combined with review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate

review of feasibility study to determine likely business viability

analysis of responses to case studies and scenarios

demonstration of research techniques

observation of presentations

oral or written questioning to assess knowledge of cultural aspects relevant to target markets

assessment of documentation about business risks.

Guidance information for assessment

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:

research units or other international business units.

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Business opportunities may include:

amount and types of finance available

consideration of applications and costings for trademarks, patents and standards accreditation

expected financial viability

finance required

likely return on investment

returns expected or required by owners

skills of operator

understanding of legal, cultural and other factors unique to the country of business

Business viability may include:

cost of modifying products and services to meet market requirements

location and/or premises available

market competition

opportunities available

resources available

risk related to a particular business opportunity, especially in regard to occupational health and safety (OHS) and environmental considerations

skills available

timing/cyclical considerations

Specialist services may include:

accountants

Austrade, state/territory departments and agencies, chambers of commerce

business brokers/business consultants

industry/trade associations

lawyers and providers of legal advice

online gateway

Business risks may include:

credit/payment risk of exporter not being paid or importer facing additional and unexpected costs associated with one or more of the following risks:

bank risk - financial standing of institutions involved in transaction/s

commercial risk - buyer insolvency

country risk - war/civil unrest/political decisions/economy

exchange rate - exchange rate fluctuations

finance risk - sufficiency of funding

performance risk - exporter/importer ability to deliver

transfer risk - exchange control/trade control

transport risk - loss of or damage to goods

other relevant risks such as:

legal risks associated with tax legislation, overlapping jurisdictions, regulations relevant to trading with international firms

market competition

OHS and environmental considerations

resources available

supply and demand

Unit sector

Business Development - International Business

This unit contains employability skills.