Write 10 pages with APA style on International Financial Management of Rio Tinto Australia. Rio Tinto Australia is a leading metals and mining company that is focused on exploration, mining and processing the earth’s mineral resources in order to maximize the value of its shareholders (Rio Tinto 2014). The company has a long-term approach to its business activities since it is currently developing Tier 1 orebodies into low-cost and life-long operations that will deliver competitive returns. The main products offered by the company include Aluminum, copper, minerals and diamonds, energy and iron ore and exploration activities (Rio Tinto 2014).
The current business environment in Australia favors Rio Tinto operations since the economy is currently on a growth path and metal prices have remained stable. Australia is experiencing a stable political environment and advancements in oil and metal exploration technologies that will enable Rio Tinto to cut down costs and ensure efficiency in its operations. Accordingly, the social environment is characterized by rural-urban migration thus metallic materials will experience high demand due to the need to build infrastructure in the cities and houses for the increasing urban population (Geddes, 2002). Rio Tinto must remain committed to a reduction of workplace accidents in the exploration sites and minimize greenhouse gas emissions.
The current growth of the global economy will enhance RIO operations, but unforeseen financial and economic shocks may adversely affect the business operations, decrease the profits and cash flows of the operations. Accordingly, foreign currency exchange rate movements may negatively affect the balance sheet of the company. The global population will increase by 30 percent in the next forty years thus leading to high urbanization and increased demand for the metal product that will ultimately .result in higher profits. .The advancements in technology will lead to a decline in exploration costs and improved cash flows for Rio Tinto. .