Introduction
In this task I will describe how the monetary environment affects businesses that operate
internationally. I will use Tesco as an example for this task.
I will emphasize on how the international business operates, finances and promotes itself
especially with certain restrictions in place. I will also look at how payments are made by
Tesco when operating internationally.
How Tesco is established internationally
Businesses can be established overseas in many different ways such as: migration, capital
flows, direct foreign investment and globalization. Globalization has an impact on how a
company is established internationally as many countries are unified due to this process. The
government are also able to set up links with other countries and can be done through the use
of laws and different policies.
When a company such as Tesco wants to function effectively in different countries, they must
know and adhere to the rules and regulations of the country. They would also need to know
understand the different currencies in each country they operate in. Tesco may also carry out
market research before making a decision in order to know what economy they would be
getting into and their target market.
How Tesco is promoted internationally
There are many different methods of promoting that businesses engage in. some of these
include: advertising, sales promotion and public relations. Popular methods of advertising are
through the use of the internet and TV advertising. This is due to the fact that both are widely
used by the majority of the population. The internet is a global network that can be accessed
all over the world which enables business to gain customers internationally wherever they
are. Through social networking websites such as Twitter and Facebook, businesses can
promoter their goods and services.
Tesco would use these social networking websites to raise brand awareness for the company.
Millions of people use social networking sites all over the world to communicate and
socialize so Tesco can use this to their advantage and gain new customers within different
countries. Adverts that Tesco put on TV eventually end up online where the whole world are
able to see them through global video sharing websites such as YouTube.
How Tesco is financed internationally
Businesses are able to finance their companies abroad through international retail banking
and merchant banking. Retail banking would allow companies to deal with global financial
payments whilst merchant banking would help Tesco in the expansion of their market into
different countries around the world.
“Trade mission is an international trip by government officials and businesspeople that is
organized by agencies of national or provincial governments for purpose of exploring
international business opportunities.”
How Tesco makes payments internationally
1
In this task I will describe how the monetary environment affects businesses that operate
internationally. I will use Tesco as an example for this task.
I will emphasize on how the international business operates, finances and promotes itself
especially with certain restrictions in place. I will also look at how payments are made by
Tesco when operating internationally.
How Tesco is established internationally
Businesses can be established overseas in many different ways such as: migration, capital
flows, direct foreign investment and globalization. Globalization has an impact on how a
company is established internationally as many countries are unified due to this process. The
government are also able to set up links with other countries and can be done through the use
of laws and different policies.
When a company such as Tesco wants to function effectively in different countries, they must
know and adhere to the rules and regulations of the country. They would also need to know
understand the different currencies in each country they operate in. Tesco may also carry out
market research before making a decision in order to know what economy they would be
getting into and their target market.
How Tesco is promoted internationally
There are many different methods of promoting that businesses engage in. some of these
include: advertising, sales promotion and public relations. Popular methods of advertising are
through the use of the internet and TV advertising. This is due to the fact that both are widely
used by the majority of the population. The internet is a global network that can be accessed
all over the world which enables business to gain customers internationally wherever they
are. Through social networking websites such as Twitter and Facebook, businesses can
promoter their goods and services.
Tesco would use these social networking websites to raise brand awareness for the company.
Millions of people use social networking sites all over the world to communicate and
socialize so Tesco can use this to their advantage and gain new customers within different
countries. Adverts that Tesco put on TV eventually end up online where the whole world are
able to see them through global video sharing websites such as YouTube.
How Tesco is financed internationally
Businesses are able to finance their companies abroad through international retail banking
and merchant banking. Retail banking would allow companies to deal with global financial
payments whilst merchant banking would help Tesco in the expansion of their market into
different countries around the world.
“Trade mission is an international trip by government officials and businesspeople that is
organized by agencies of national or provincial governments for purpose of exploring
international business opportunities.”
How Tesco makes payments internationally
1
