The International Business Entry Strategy, Aussie Fresh in Vietnam Essay

The International Business Entry Strategy, Aussie Fresh in Vietnam - Essay Example In addition, Vietnam is in a transformation process as the country is moving fast towards implementation of capitalist principles against its traditional planned economy. In fact, the country now also exports its Vegetables and Fruits products to over 50 nations worldwide because of its free market mechanism. Nevertheless, the domestic fruits/vegetables demand is not completely met from domestic agricultural produce; hence, these products are also imported in Vietnam (Vietnomics Update, 2009) & (CIA Fact Book – V, 2009). It is, therefore, recommended to Aussie Trade to commence operations in Vietnamese market through proper branding and packaging of agri-products. The company should adopt Joint Venture strategy because the currency risk is relatively high, mainly attributable to current account deficit of Vietnam. The imports, therefore, become expensive that may negatively impact the growth of Aussie Trade if forms its own subsidiary in Vietnam. It is feasible to minimize such risks by partnering with locals (who have knowledge in this sector) and establishing distribution networks for sales of Fruits and Vegetables (CIA Fact Book – V, 2009). The world today is viewed as a global village because recent technological developments have helped reducing communication barriers and borders among nations worldwide. The creation of information/communication networks and transportation routes has significantly contributed to increase trade volume and business activities. Not only developed countries like USA, France, UK< Germany, Japan, etc are beneficiaries of these advancements but also the developing nations have joined international arena as they have to focus on international integration, economic prosperity and sustainable development. Australia is viewed as a small, yet rich economy because of high purchasing power. It's per capita income was estimated to be $39,000 in 2009 and  the country was ranked 21st in the list of high-income nations.