Essay
BTEC Level 3 Unit 39 P1
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This is P1 for BTEC level 3 Unit 39 International Business
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Voorbeeld van de inhoud
For this P1 I will be explaining what the international business environment in which the MediaMarktoperates. I will need to look at data on the value and volume of activity together with the recent
trends in the particular activity. For this P1 I will use a particular country to explain how the
international business and the international business environment works, the country that I will be
using is Turkey.
First of all we need to know what international business exactly is, well briefly explained
international business is the importing and/or exporting of products and services. Without
international business Turkey would only have products available from its own country, which would
be a lot of different kinds of fruit, this makes international
trade very important. To get a little view into the import of
Turkey you can get a look in the picture below, with this
picture it may get a little clearer of the size of the import of
Turkey.
For international businesses like the MediaMarkt international
business means more sales. This is because businesses are able
to reach more people than the people living in the country
they are based in.
There always is a difference between the money spend on import and the money received from
export. When a country imports more than exports the country loses money, this is called a trade
deficit. When a country exports more than imports the country makes money, this is called a trade
surplus. Now let’s have a look at Turkey at this site I found out that Turkey has a trade deficit since
the start of the graph which is in 2005. A trade deficit has a couple of disadvantages for the
MediaMarkt back in Turkey. One of these disadvantages is that the “Turkish Lira” will decline in value
and because the MediaMarkt needs to convert the Lira into Euro’s to pay their suppliers the
MediaMarkt will most likely lose money because of the trade deficit.
The value of world trade is another important part of trading between countries, this is because the
more international organisations a country joins the easier trading is. For example, Turkey isn’t part
of the European Union this makes trading with other countries that are part of the EU a little harder
because of border restrictions. So it would be a lot easier for companies if Turkey is able to join the
EU because trading will become easier.
The globalisation of companies is very important for countries like Turkey. It’s so important for
Turkey because they aren’t in the European union which makes trading a little harder. So Turkey
wants companies like the MediaMarkt to come to their country. The Globalisation of the MediaMarkt
is a positive factor for Turkey because this offers jobs to the Turkish people. Globalisation is also
positive because MediaMarkt is a tech company the Turkish residents may get more technological
developed. The MediaMarkt moved to Turkey possibly because the wages are lower. The Turkish
people earn on average from $700-$1.000 according to this source less than what people earn in The
Netherlands.
MediaMarkt is an multinational corporation this means that they are based in different countries.
MediaMarkt is based in countries like: Belgium, Germany, Greece, Hungary, The Netherlands, Italy,
Austria, Poland, Portugal, Russia, Spain, Turkey, Switzerland and Sweden. The one thing that stands
out is that the MediaMarkt is only based in Europe
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