Summary
Summary Unit 5 International Business P1
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- PEARSON (PEARSON)
Explain why two businesses operate in contrasting international markets (Unit 5 International Business P1 )( BTEC Business)
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UNIT 5 International businessesExplain why two businesses operate in contrasting international markets
, Introduction of international business
International businesses refers to operating, sending, and transaction between
companies from different countries. Some businesses export and import their
products into multiple countries by not limiting to a specific currency in order to get
profit. Some businesses such as Tesco require accurate approval and export
declarations through the National Export System (NES) in order to import and export
to third countries and the EU. They must use it as an exporter to state their purpose
to export their goods to a third country and to pay VAT, import duties and taxes in the
destination country where needed to ensure they follow with shipping procedures.
International business has a huge impact on the national economy. It takes place in
an internationally competing environment involving small and large enterprises.
Companies that make businesses internationally have to consider several factors.
Governments can affect global businesses for the advantage of the national
economy. Countries join the international trade union to support and protect
international business.
Many international businesses has been affected by covid negatively and positively,
some global markets are gone up such asTesco, sainsbury, Asda, lidl, and morrisons
due to the fact that the people were more likely to do online shoppings, specially
people were stocking the grocery, this influenced positively on all these markets to
increase the e-commerce platform and to increase their sales dramatically with the
help of covid-19. Moreover, the most benefited company that had a positive impact
of covid was microsoft because people were doing work from home and microsoft
was in use all over the world, they earned $168.088 billion in 2021 . However, some
global markets has been fallen down down such as Ikea because people were not
able to go to the store and purchase furnitures without looking at the quality as well
as Tesla sales dropped due to people were not able to go to Tesla showrooms to buy
cars as well as the supply chain of Tesla decreased due to their 40% of tesla
production come from china and they produced less production due to shutdowns.
Language is one of the barriers for the businesses who are seeking to expand their
businesses internationally. Some businesses have to face issues with suppliers and
partners to communicate with them which results in menace their businesses
abroad. Also Brexit changed the international markets such as Nike suspended their
reuse recycling scheme in the UK resulting in demanding high costs from customers.
Two contrasting businesses such as Nike and Tesco were negatively affected by
Brexit as Tesco was unable to deliver products to Northern Ireland which caused
disruption in their revenue and market share. However on the other hand Nike wasn't
affected as much by Brexit because Nike is an American company which operates in
worldwide countries. Brexit affected the trade as Uk bought products from EU
constantly declined by 25% which affected the trade union between EU countries
and UK.
Moreover, natural disasters impacted the stock deliveries to the international markets
which resulted in receiving less supply chains. Some businesses recover their losses
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