Case
Assignment 1, Task 1 - International business - Why trade internationally for Morrisons and Aston Martin
- Institution
- PEARSON (PEARSON)
Case of 4 pages for the course Unit 5 - International Business at PEARSON (D)
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Why trade internationally?WHY MORRISONS AND ASTON
MARTIN OPERATE IN CONTRASTING
INTERNATIONAL MARKETS
In order to help local businesses that want to
expand internationally, we will explain the
reasons for two businesses (Morrisons as
Importing Business and Aston Martin as
Multinational Enterprise) operating in different
Aston Martin is a British
international markets. Also, an explanation
manufacturer that
including the types of finance available for
independently produces Morrisons
international businesses will be offered. luxury cars, founded in of superm
1913ofby Lionel Martin and 1899 by W
• Economies
International of scale – With
businesses the sale of a larger number
bring numerous products,
Robert Bamford. The The head
the costbenefits
per unitand
will be lower,tothis
contributes the means that the profit per unit will be
development
headquarter is located in Bradford
higher. and
Thegrowth
reduced of costs
both the
willcompany and to
contribute thethe effectiveness of the
national economy. Morrisons and Aston Gaydon, Warwickshire stores in
business.
Martin have a number of reasons why they (England). Aston Martin is with a nu
• chose to becomeAdvantage
Comparative international.
- A country is better/ more efficient in
a globally known brand, approxim
producing a certain product than other country. Another country is more
efficient in making a different product and that is why the countries will
Reasons
want to exchange why Morrisons and Aston Martin became international
their products.
• Preferential Tax rates – The governments of certain countries • New markets – By accessi
encourages Multinational Enterprises to open branches in the territory of will be able to expand making high
their country, offering them preferential tax rates. The advantage for the to be careful when choosing the ma
company is that it pays less taxes, being able to use that money to develop doing a thorough research on the c
the business. Instead, the Multinational Enterprise creates jobs for the logistics (fees, custom duties etc.),
inhabitants of the country where they opened the new branch, leading to the rate etc.
development of the national economy and raising living standards.
• Increased Market share/M
internationally, a business could in
become leader on the specific mark
• Brand name– A brand kno
more customers, because people te
famous brand.
• Technological dominance
will have access to the best technol
improve.
International Businesses can
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