Arif Mohammad
Unit 5 – Why trade internationally?
Learning Aim, A: Explore the international context for business operations
Learning Aim, B: Investigate the internal economic environment in which business operates
UNIT 5 – INTERNATIONAL
BUSINESS
Unit 5 – Assignment 1
,Arif Mohammad
Unit 5 – Why trade internationally?
Learning Aim, A: Explore the international context for business operations
Learning Aim, B: Investigate the internal economic environment in which business operates
Contents
Explain why two businesses operate in contrasting international markets ........................................ 3
Introduction ........................................................................................................................................ 3
Cadbury Mondelez ......................................................................................................................... 5
Unilever PLC.................................................................................................................................... 8
Cadburys ....................................................................................................................................... 10
Unilever ........................................................................................................................................ 11
Reasons for conducting business internationally ............................................................................... 11
Growth .......................................................................................................................................... 11
Brand Exploitation......................................................................................................................... 13
Access to New Markets ................................................................................................................. 15
Diversification ............................................................................................................................... 17
Increasing Market Share ............................................................................................................... 19
Market Leadership ........................................................................................................................ 20
Growth .......................................................................................................................................... 21
Diversification ............................................................................................................................... 22
Additional Revenue Streams ......................................................................................................... 24
Increasing Market Share ............................................................................................................... 25
Access to New Markets ................................................................................................................. 26
Market Leadership ........................................................................................................................ 26
Developed Economies....................................................................................................................... 27
Less Developed Economies ............................................................................................................... 28
Emerging Economies ......................................................................................................................... 28
Explain the type of finance available for international business ....................................................... 29
Prepayment by an exporter .......................................................................................................... 29
Letters of Credit ............................................................................................................................ 30
Export Credits................................................................................................................................ 31
Bank Loans .................................................................................................................................... 32
How is Cadburys and Unilever financed? ........................................................................................ 33
Explain the main features of globalisation that affect two contrasting businesses .......................... 34
Explore the role of trading blocs on international trade .................................................................... 44
World Trading Organisation .............................................................................................................. 44
Custom Unions and Common Markets ............................................................................................. 45
Free Trade Areas .................................................................................................................................. 48
Analyse the support that is available to contrasting businesses that operate internationally ........ 52
1
,Arif Mohammad
Unit 5 – Why trade internationally?
Learning Aim, A: Explore the international context for business operations
Learning Aim, B: Investigate the internal economic environment in which business operates
Department of International Trade .................................................................................................. 52
Chambers of Commerce ................................................................................................................... 54
Trade Fairs......................................................................................................................................... 55
Grants for International Promotions ................................................................................................ 56
Identifying International Partners..................................................................................................... 57
Open to Export .............................................................................................................................. 58
Analyse the barriers to two contrasting businesses of operating internationally ............................ 60
Reasons for protectionism in international markets ........................................................................ 60
Protecting Infant Industries and Protecting Employment ................................................................ 60
Protecting local businesses and differences in laws ......................................................................... 61
Cultural Reasons ............................................................................................................................... 62
Methods for protecting markets ...................................................................................................... 63
Barriers to trade ................................................................................................................................ 64
Evaluate the impact of globalisation on a business ............................................................................ 67
Conclusion ............................................................................................................................................ 77
Bibliography.......................................................................................................................................... 79
2
, Arif Mohammad
Unit 5 – Why trade internationally?
Learning Aim, A: Explore the international context for business operations
Learning Aim, B: Investigate the internal economic environment in which business operates
Explain why two businesses operate in contrasting international
markets
Introduction
In this assignment I will be choosing 2 businesses and how each of them operates in contrasting
international markets. My main 2 businesses are Cadburys and Unilever. I’m going to compare how
both businesses operate in different international markets. Unilever is a distribution company while
Cadbury is a multinational business.
International business/trade is when you typically export and import goods from one country or
another. For example, you may get your clothes from Bangladesh where it’s originally made and
then it gets shipped to the UK. The UK exports things like cars, gas turbines, crude petroleum, gold
and many more things as cars are worth 38,574 million in value. The link below supports the
statement I have made about what things the UK exports.
https://en.wikipedia.org/wiki/List_of_exports_of_the_United_Kingdom
3
Unit 5 – Why trade internationally?
Learning Aim, A: Explore the international context for business operations
Learning Aim, B: Investigate the internal economic environment in which business operates
UNIT 5 – INTERNATIONAL
BUSINESS
Unit 5 – Assignment 1
,Arif Mohammad
Unit 5 – Why trade internationally?
Learning Aim, A: Explore the international context for business operations
Learning Aim, B: Investigate the internal economic environment in which business operates
Contents
Explain why two businesses operate in contrasting international markets ........................................ 3
Introduction ........................................................................................................................................ 3
Cadbury Mondelez ......................................................................................................................... 5
Unilever PLC.................................................................................................................................... 8
Cadburys ....................................................................................................................................... 10
Unilever ........................................................................................................................................ 11
Reasons for conducting business internationally ............................................................................... 11
Growth .......................................................................................................................................... 11
Brand Exploitation......................................................................................................................... 13
Access to New Markets ................................................................................................................. 15
Diversification ............................................................................................................................... 17
Increasing Market Share ............................................................................................................... 19
Market Leadership ........................................................................................................................ 20
Growth .......................................................................................................................................... 21
Diversification ............................................................................................................................... 22
Additional Revenue Streams ......................................................................................................... 24
Increasing Market Share ............................................................................................................... 25
Access to New Markets ................................................................................................................. 26
Market Leadership ........................................................................................................................ 26
Developed Economies....................................................................................................................... 27
Less Developed Economies ............................................................................................................... 28
Emerging Economies ......................................................................................................................... 28
Explain the type of finance available for international business ....................................................... 29
Prepayment by an exporter .......................................................................................................... 29
Letters of Credit ............................................................................................................................ 30
Export Credits................................................................................................................................ 31
Bank Loans .................................................................................................................................... 32
How is Cadburys and Unilever financed? ........................................................................................ 33
Explain the main features of globalisation that affect two contrasting businesses .......................... 34
Explore the role of trading blocs on international trade .................................................................... 44
World Trading Organisation .............................................................................................................. 44
Custom Unions and Common Markets ............................................................................................. 45
Free Trade Areas .................................................................................................................................. 48
Analyse the support that is available to contrasting businesses that operate internationally ........ 52
1
,Arif Mohammad
Unit 5 – Why trade internationally?
Learning Aim, A: Explore the international context for business operations
Learning Aim, B: Investigate the internal economic environment in which business operates
Department of International Trade .................................................................................................. 52
Chambers of Commerce ................................................................................................................... 54
Trade Fairs......................................................................................................................................... 55
Grants for International Promotions ................................................................................................ 56
Identifying International Partners..................................................................................................... 57
Open to Export .............................................................................................................................. 58
Analyse the barriers to two contrasting businesses of operating internationally ............................ 60
Reasons for protectionism in international markets ........................................................................ 60
Protecting Infant Industries and Protecting Employment ................................................................ 60
Protecting local businesses and differences in laws ......................................................................... 61
Cultural Reasons ............................................................................................................................... 62
Methods for protecting markets ...................................................................................................... 63
Barriers to trade ................................................................................................................................ 64
Evaluate the impact of globalisation on a business ............................................................................ 67
Conclusion ............................................................................................................................................ 77
Bibliography.......................................................................................................................................... 79
2
, Arif Mohammad
Unit 5 – Why trade internationally?
Learning Aim, A: Explore the international context for business operations
Learning Aim, B: Investigate the internal economic environment in which business operates
Explain why two businesses operate in contrasting international
markets
Introduction
In this assignment I will be choosing 2 businesses and how each of them operates in contrasting
international markets. My main 2 businesses are Cadburys and Unilever. I’m going to compare how
both businesses operate in different international markets. Unilever is a distribution company while
Cadbury is a multinational business.
International business/trade is when you typically export and import goods from one country or
another. For example, you may get your clothes from Bangladesh where it’s originally made and
then it gets shipped to the UK. The UK exports things like cars, gas turbines, crude petroleum, gold
and many more things as cars are worth 38,574 million in value. The link below supports the
statement I have made about what things the UK exports.
https://en.wikipedia.org/wiki/List_of_exports_of_the_United_Kingdom
3
