any1 doing CCA? (1 Viewer)

[nerdd]

cca as in coca cola amatil.. global case study.

anywho, to those who are, i have a query.
In the summary sheets my teacher gave us, it says that tariffs and all that don't directly affect cca, but indirectly, it could help them globally in terms of expansion.

anyone have a clue what that's on about?

 

[Nupil]

Well I would take it to mean that because CCA established as a subsidiary in Australia, they're treated like a domestic producer and thus are exempt from any tariffs that Coca Cola (The global company) would have to pay if they were simply exporting to Asutralia from overseas.

Did that make any sense?

And in the sense of global expansion - it would be seen as a positive reason or an inducement to use FDI as a way of expanding. Because as soon as you're established through FDI with a subsidiary, you benefit from any protection policies of the businesses in that nation.

So short answer? They're not affected by tariffs directly because they have operations here and are treated like a domestic producers and indirectly it helps them in terms of expansion as that's a really good reason to expand to a certain country.

I dont know if any of that has actually helped you (and honestly the second half of the question/answer is a bit ... crappy) but I'm doing CCA aswell. If you need a translation - tell me and I'll try again!