It is very common for businesses and franchises to want to expand overseas to explore new market in different countries. Although this sounds good and beneficial, it comes with many difficulties and risks. It is guaranteed that in an organisations lifetime they will come across the decision to expand their business overseas to either make more money or just to expand business. All businesses that seek to do this will come across risks that they are going to have to take for it to work and be a benefit to them. It all depends on what type of business it is that seeks expansion.
As stated earlier there are many risks that involve international expansion. A common problem that small businesses run into when they dabble with setting up international relationships, for example, is that they sometimes don’t really know who they’re dealing with. No matter where you go to, unless it an English speaking country, the language barrier is always going to be a problem. Even if you are able to access a translator to help it will still be hard to fully connect with other countries in terms of business. Another risk is not being familiar or accustom with their culture practises and etiquette. A big thing with expanding overseas is knowing where you are going and what they are like in that country because if you don’t you could run into trouble because some of the thing that are normal to people in their home countries can be an offence in other countries.one thing that ties in with that risk is that some countries are a lot stricter with their laws compared to other countries so that is a big thing to think about if wanting to expand overseas. A very large factor that you have to think about is how time consuming it actually is to move a whole business overseas and get them fully working and all in order for the business to commence in that country. It also isn’t very easy due to having to build overseas when you aren’t there which means that sometimes you would have to travel to that country to see that it is all going to plan and not being messed up. Lastly and the most important risk that you would have to face is finding a partner or sponsor overseas that you can actually trust to help with starting up your organisations overseas. Especially in a different country it is very easy to trust someone and then for them to go behind your back and ruin all your plans. You have to be careful with who you choose to start up a business with overseas.
Even though there are many important risks that are to do with expanding overseas there are also many benefits that could happen with exploring overseas if you are willing to take those risks. The same benefit is the possibility of you entering into an untapped market which can and will most likely open up many doors for your business. Being an untapped market source your business will strive greatly. Whatever side you teeter toward, remember that going global doesn’t have to be a “right now” sort of thing. It’s always a possibility that you should consider, simply because you’re a business owner. If you are considering such an expansion, then there is a lot of work to be done before you begin. Be sure to check back the rest of the week as we continue discussing expanding your business overseas.
The two countries chosen were Argentina and he United States. For both countries there are a few things that you have to consider, such as the economic risk, the political risk and the financial system risk.
Argentina
Economic risk
Argentina, Latin America's No. 3 economy, grew at one of the region's fastest rates in 2010, although some economists say widely questioned official data overstates growth.
With the exception of 0.9 percent growth in 2009, Argentina has posted strong annual growth since Nestor Kirchner, Fernandez's late husband and predecessor as president, took office in 2003 following the 2001-2002 economic crisis.
An agricultural powerhouse, Argentina is the world's top supplier of soyoil and soymeal, and the No. 2 exporter of corn. Soy exports rose to nearly $20 billion last year, representing more than a quarter of total export earnings. The auto industry has driven surging factory output in recent years and car production surged 41 percent in 2010, according to trade industry association data.
Political risk
Fernandez's approval ratings currently run at about 50 percent, far ahead of a splintered field of opposition candidates from across the political spectrum. However, she has not yet announced her candidacy and seven months is a long time in the stormy world of Argentine politics.Presidential candidates can win in a first-round vote if they win 40 percent of the vote and have a lead of 10 percentage points over their nearest rival. Support of 45 percent guarantees a first-round victory.
Inflation is fueling wage demands, raising the risk of labor unrest over the coming months as powerful trade unions negotiate salary hikes. Farmers, who have staged repeated strikes over government export curbs and taxes, remain at odds with Fernandez and could launch fresh strikes. Persistent curbs on corn exports could be a trigger as harvesting gathers pace over the coming months.
Financial risk
Double-digit inflation has become the potential Achilles' heel of the government's growth-oriented economic policies. Official data shows consumer prices rose 10 percent in the 12 months through February, but private forecasts say real inflation is running at least twice that rate. Critics say the widely discredited INDEC national statistics agency has been underreporting inflation since 2007, when the government replaced the head of its consumer price unit with a political ally and ousted long-standing technical staff.
Economists say double-digit inflation is becoming entrenched, leaving a thorny legacy for the next government, and raising doubts about the long-term viability of current policies. Renegade statistics workers, analysts and opposition politicians accuse the government of low-balling prices rises for political gain and to save money on inflation-linked debt payments, which account for about one quarter of the country's $161 billion total obligations.
United States
Economic risk
Economic risk in U.S is very low, but considering the situations that is happening right now in 2013, when we are seeing a government shutdown this information might be changed over the next few months or years., but this is the latest information about economic, politic, and financial factors about U.S. The U.S. economy is the largest and most advanced in the world, with GDP of more than USD 15 trillion. Modest growth is expected to continue near-term driven by improved business and consumer confidence, lower unemployment rates, improved global growth and the easing of recent tax hikes and government spending cuts. In August 2011, the U.S. sovereign credit rating was downgraded for the first time in its history, amid concerns over rising federal debt and discord among elected leaders. Despite the downgrade, investors maintained their favourable view of U.S. credit quality and fled to U.S. bonds. Uncertainties remain regarding the exit strategy for the Federal Reserve as they are set to being tapering their quantitative easing measures which could adversely affect the economic recovery.

Political risk
The United States has a stable democratic political system and a strong legal system. Recent political infighting has led to significant dysfunction in Washington. U.S. combat forces are in the process of exiting Afghanistan, however the potential for additional armed conflicts remain. The United States has used expansionary fiscal policy to stimulate the economy, leading to a substantial increase in the budget deficit. Reforming entitlement programs and cutting government spending remains a hotly debated point. National security, the size of the military and future terrorist attacks continues to dominate much of U.S. politics.

Financial risk
Insurance regulation in the United States is decentralized and handled on a state-bystate basis As of July 2010, the Federal Insurance Office, under the Department of the Treasury, is responsible for monitoring the insurance industry for regulatory gaps, systemic risk, and international issues. The government bailed out and restructured a number of financial institutions during the financial crisis. While the banking sector continues to recover, it remains somewhat vulnerable. Interest rates are at historic lows due to accommodative monetary policy, which is expected to continue through 2014.

Conclusion
It is very clear that expanding business overseas into different countries is a pathway that should definitely be considered. No inly is it beneficial for TAFE as a whole with opportunities to make more money and expand business but also to help people in need of an education all around the world but cannot access it. They offer a large range of subjects which is very useful in many different countries especially non English speaking countries.
Although this sounds well, it is a vital to think about where and when you want to expand due to the risk of it may failing.
Given the above discussion, the VTA is of the opinion that a VET-accredited Diploma pathway qualification is preferred. However, VTA acknowledges that Government endorsement and strong curriculum support will be necessary to encourage industry stakeholders to support and pursue the development and accreditation of these qualifications.