2024 Unit 5: International Business (Assignment 1) (Distinction)
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Unit 5 - International Business
Instelling
PEARSON (PEARSON)
This document includes assignment 1 for BTEC Level 3 Business. Use this as a guide to help you achieve a distinction in your coursework. It covers all criteria.
Any questions, please message me!
Use PEEL to structure my paragraphs – Point, Evidence, Explanation, Link.
USE MY TABLES I HAVE DONE IN LESSON AS WELL. WILL NEED TO BE PUT IN MY
COURSEWORK AND FIT IT IN TO PARAGRAPHS.
When your work has received feedback comments by your
teacher – please ensure the following:
1. Keep the blue as guidance
2. You do not delete the comments
3. You write your additional improvement in GREEN font
Why trade internationally? - NEED TO WRITE IT IN 3RD PERSON. It is a business report. USE
INFORMATION RELEVANT TO MY BUSINESS UNDER THE RIGHT HEADINGS
(Comments written in blue are guidance only and should be deleted in your final written
report)
Definition of international trade -
International trade is the exchange of goods, services, and capital across international
borders or territories. It allows countries to access a wider range of goods and services from
different markets, allowing for increased competition. This process has become more
important today and plays a significant role in many countries' gross domestic product
(GDP).
International trade involves complicated things such as currency exchange, government
policies, economic factors, legal systems, and markets between countries. This is where the
World Trade Organisation and other international economic organisations aim to facilitate
and promote international trade, and statistical services provide data on international trade.
International trade | Definition, History, Benefits, Theory, & Types | Britannica Money
https://www.investopedia.com/insights/what-is-international-trade/
https://en.wikipedia.org/wiki/International_trade
1
, A1 Learning Aim A&B
Different types of business activities (define, explain the type of activity for each and
characteristics) Business Activities: Definition and 3 Main Types (investopedia.com)
Multinational Corporation: Definition, How It Works, Four Types (investopedia.com)
GO BACK TO THE POWERPOINTS DONE IN CLASS
Definitions and explanations of the different types of business activities:
Exporting – Selling things and services made in one place to other countries is called
exporting. Products and services are made in the UK (United Kingdom) but sold all over the
world. Exporters buy or make goods in the UK for example and send them to other
countries. Some important parts of this are shipping things across international lines and
following the rules for customs in both the selling and importing countries.
Importing – When you import, you buy things and services from other countries to use and
sell in your own country. In the same way, this applies to things and services that are made
in one place but bought and brought into another. Importers buy goods from other countries
and sell them in countries like the UK. Setting up the international buy and transfer of goods
and clearing customs in the country that is importing them are important parts of this.
Multinational Enterprises – A multinational enterprise is a business that owns or
controls the production of goods or services in more than one country besides its home
country. Through direct funding, they also run and handle businesses in other countries. The
most important things about this are that they are big players in the areas they work in, that
they have grown through both organic and inorganic growth, that they put a lot of money
into research and development, and that their brands are known all over the world.
Associated Enterprises – These are specialised companies that trade with and provide
goods and services to global, export, and importing companies. They can make these faster
and better, which means they will cost less and be of higher quality. When it comes to
international trade, companies that have a strong position in the supply chain and help ship,
organise, market, hire, fund, and distribute goods across countries are key indicators of
linked businesses.
Exporting:
- Definition: Selling goods and services produced in one country to other countries.
- The goods and services are produced domestically but sold internationally.
- Exporters source or manufacture products domestically and ship them abroad.
- Key characteristics include shipping goods across international borders, complying with
customs regulations in both exporting and importing countries, handling planning and
transportation.
2
, A1 Learning Aim A&B
Importing:
- Definition: Purchasing goods and services from other countries for sale or use domestically.
- Goods and services are produced in one country but purchased and brought into another
country.
- Importers purchase products from abroad and bring them into the domestic market.
- Key characteristics include arranging international purchase and transport of goods,
clearing customs in the importing country.
Multinational enterprises:
- Definition: A company that owns or controls production of goods or services in one or
more countries other than its home country.
- Operates and manages businesses across national borders through direct investment.
- Key characteristics include having a presence and operating subsidiaries in multiple
countries, centralised strategic management, and coordination across borders.
Associated enterprises:
- Definition: Enterprises which are connected by certain relationships that may enable the
enterprises to determine or influence prices, costs or supplies relating to other enterprises.
- Examples include parent-subsidiary relationships, brother-sister companies under common
control.
- Key characteristics include common ownership or control leading to non-arm's length
transactions that need to comply with transfer pricing regulations.
Exporting
Importing
Multinational enterprises
Associated enterprises
Report Section 1
Company 1 – TOYOTA – Company 2 – SHELL. Where have they started, where
have they expanded, which have they expanded to since their origins. What is
relevant to the reasons of international trade.
3
, A1 Learning Aim A&B
Introduction to the company (What do they trade? Product/services? Which sector is the
business operating in? look at chronology of their historical growth) SECTOR – PRIMARY,
SECONDARY, TERTIARY.
Introduction of Toyota
Toyota is a Japanese automobile manufacturer, founded in Japan in 1933. The business
began with Kiichiro Toyoda's innovative idea and was officially established as a division of
Toyoda Automatic Loom Works. Toyota began to develop into a separate firm, establishing
itself as a major player in the global automobile industry. Toyota initially focused on creating
passenger cars, but World War II forced them to prioritise truck production. However,
following the war, passenger car production came back showing the turning point in Toyota's
history.
Operation of Company 1 (which industry? Which ownership type? Etc.)
The company has experienced significant growth, establishing a presence in many different
countries and regions around the world. Toyota designs, manufactures, assembles, and sells
passenger cars, minivans, commercial vehicles, and related parts and accessories, in Japan,
America, Europe (UK), and Asia. This international expansion, as well as the ability of the
company to adapt its products to changing worldwide markets, are important factors in
international trade.
Toyota's expansion covers a move from primary production of car parts to secondary
assembly and tertiary sales of vehicles and related services. This development has been
important for Toyota's international trade and global business plans, that contribute to the
company's success as one of the world's top carmakers.
https://www.britannica.com/topic/Toyota-Motor-Corporation
https://www.cascade.app/studies/how-toyota-went-from-humble-beginnings-to-automotive
-giant
https://global.toyota/en/company/trajectory-of-toyota/history/
Operation of Company 1 (which industry? Which ownership type? Etc.)
Operation of Toyota
4
, A1 Learning Aim A&B
Toyota operates in the automotive industry and is a multinational corporation involved in
the production of cars, electric vehicles, motorcycles, and small commercial vehicles. As a
major player in the car industry, Toyota has a global presence with manufacturing plants and
sales operations in numerous countries, positioning itself as a key contributor to
international trade and commerce. The company's ownership type is public, since they are
listed on stock exchanges such as the Tokyo Stock Exchange and the London Stock Exchange,
allowing for widespread ownership by institutional and individual investors.
Structure of Company 1 (how is the business structured? (is it structured geographically, by
function, does it have headquarters in one country and subsidiaries in others?) By function?
headquarters with subsidiary? By geographical areas?)
Structure of Toyota
Toyota's organisational structure is divided by a mix of geographic and product-based
divisions. Geographically, the company's structure includes divisions such as Japan, North
America, Europe, Asia (excluding China), China, and South and Central America, Oceania,
Africa, and the Middle East. Each geographic division has its managerial head reporting to
the company's headquarters. This structure allows Toyota to tailor its products and services
according to regional market conditions and effectively match its marketing strategies to
opportunities in automobile markets around the world. Additionally, the presence of
product-based divisions supports the development of automotive brands and product lines,
thereby facilitating business competitiveness and growth through product development and
innovation.
With the UK, Toyota's trade operations are supported by its subsidiary, Toyota Motor
Manufacturing (UK) Ltd, which is the British manufacturing subsidiary of Toyota. The main
factory is in Derbyshire, with an engine factory in North Wales. This arrangement is a
combination of geographic and function-based structuring, representing Toyota's
commitment to manufacturing and trade activities in the UK. The company's global
hierarchy, which allows increased decision-making power of regional heads and business
unit heads, ensures that trade operations in the UK align with the higher strategic direction
set by the company's global headquarters in Japan, while also leveraging the specific market
conditions and opportunities in the UK and Europe.
Toyota’s Organizational Structure: An Analysis - Panmore Institute
Toyota Manufacturing UK - Wikipedia
Activities of Company 1 (export, import, is it a MNCs or associated business? Do they use
associated businesses?)
Activities of Toyota
5
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