International business involves conducting business activities overseas. When conducting these activities, implications arise for participating domestic, international firms and its governments. In this essay, it focuses on the implications on the Australian government as Australian firms conduct business activities with international firms. This is observed through two selected Australian newspaper articles, “Trade ties with Indonesia poor: exporter” (Perry, 2013) and “What does an arms trade treaty means to us in Australia?” (Mallinson, 2013). In addition to identifying the implications, an analysis of each article deals with the relations to the international business concepts such as ethical social responsibility and the relevance to “the Friedman Doctrine” (Friedman, 1970) and political economy in country attractiveness to conducting business activities.

The Australian firm, Elder, the exporter of Australian cattle has endure implications towards the Australian government, resulting in poor international trading with international firms. Through “Trade ties with Indonesia poor: exporter” (Perry, 2013), it describes “trade relations with Indonesia are poor”(Perry, 2013) specifically the agriculture cattle industry and criticises the “policymakers”(Perry, 2013) classified as the Australia government. In 2011, a public outrage occurred when “horrific footage from Indonesian abattoirs that uses Australia cattle has revealed abuse of the animals” (Worthington, 2011). Following the event, the Australian government introduced Exporter Supply Chain Assurance System (ESCAS) in 2011, “as live exporter found their industry accused of not doing enough to stop animal cruelty” (Perry, 2013). This system ensure all firms handling livestock must “be issued with an approval by the Department of Agriculture, Fisheries and Forestry” (DAFF, 2011) before exporting. Many have