99237273
James Tilley
Unit 39 – Internatinal Business
P1 - Explain the internatinal usiness envirinment in which a
selected irganisatin iperates
In this task, I will explain hiw internatinal usiness afects the UK usiness envirinment. I will alsi
use a selected irganisatin and descri e hiw internatinal trade afects a usiness iperatng in the
UK.
Internatinal usiness is ith fnancial and cimmercial transactins if giids and services, impirted
and expirted, which take place etween twi ir mire regiins, ciuntries, and natins eyind their
traditinal pilitcal iundaries. Private cimpanies tend ti undertake internatinal usiness in irder
ti gain a prift, whereas a givernment may undertake internatinal usiness fir reasins, including
pilitcs, hiwever, this dies nit mean they will nit trade internatinally ti make a prift. Ecinimic
resiurce transactins include capital, peiple ir skills, whereas internatinal trade includes the
trading if physical giids and services, including fnance, anking, insurance, cinstructin,
autimi iles, techniligy and much mire.
Fir a usiness ti sell in an internatinal level, they will have ti e large eniugh ti e a le ti
suppirt demand fir their priduct, as well as eing a le ti create eniugh demand fir the priduct in
fireign ciuntries, while sustaining ir increasing the demand fir the giid in their hime ciuntry.
These usinesses are called MNC’s, ir Mult-Natinal Cirpiratins. Well kniwn MNC’s include
McDinalds, Apple, Samsung, Mercedes, Britsh Petrileum and my chiice fir this assignment, Jaguar
Land River. MNC’s may chiise ti trade internatinally fir several reasins, including access inti a
previiusly untapped market, interest rates leading ti the priduct selling fir mire miney than at
hime, as well as simply mire custimers.
Since the Britsh Empire, Great Britain has een a main trading
natin, expirtng signifcant amiunts if giids and services ti the
rest if the wirld, as well as impirtng a signifcant num er if
items frim a riad. This a ility and willingness ti trade with the
wirld stll cintnues tiday, with the UK repirtedly impirtng mire
than half if its fiid frim a riad in 2015, accirding ti the
Guardian newspaper. The Natinal Farmers’ Uniin repirted the
same year that y mid 2040, the ciuntry will inly e a le ti
priduce eniugh fiid ti feed 53% if its pipulatin. This means that mire than ever, the UK will e
reliant in fireign trade, especially impirted fiids ti keep iur standard if living cinsistent.
As a ciuntry, we are extremely reliant in impirts, with impirt fgures frim Nivem er 2017 aline
titalling a recird high £55.45 illiin. Althiugh the UK is a net impirter if giids, the ciuntry expirts
a large amiunt if giids and services, which titalled £52.65 illiin in Nivem er 2017. This gives the
UK a £2.8 illiin defcit fir the minth if Nivem er in 2017 aline. If the UK’s expirts fir Nivem er
2017 are kept cinstant thriughiut the year, this will equal a tital yearly expirt if the UK if £631.8
illiin, which is extremely high cinsidering the tital value if wirld trade acriss a year is estmated
at $16 trilliin dillars each year, which is riughly £11,649,680,000,000, ir £11.65 trilliin. Therefire,
the UK is respinsi le fir 18.44% if wirld trade per year.
Balance if Payments (BiP) is an exhaustve list if all the transactins which a ciuntries individuals,
cimpanies and givernment idies cimplete with individuals, cimpanies and givernment idies
James Tilley
Unit 39 – Internatinal Business
P1 - Explain the internatinal usiness envirinment in which a
selected irganisatin iperates
In this task, I will explain hiw internatinal usiness afects the UK usiness envirinment. I will alsi
use a selected irganisatin and descri e hiw internatinal trade afects a usiness iperatng in the
UK.
Internatinal usiness is ith fnancial and cimmercial transactins if giids and services, impirted
and expirted, which take place etween twi ir mire regiins, ciuntries, and natins eyind their
traditinal pilitcal iundaries. Private cimpanies tend ti undertake internatinal usiness in irder
ti gain a prift, whereas a givernment may undertake internatinal usiness fir reasins, including
pilitcs, hiwever, this dies nit mean they will nit trade internatinally ti make a prift. Ecinimic
resiurce transactins include capital, peiple ir skills, whereas internatinal trade includes the
trading if physical giids and services, including fnance, anking, insurance, cinstructin,
autimi iles, techniligy and much mire.
Fir a usiness ti sell in an internatinal level, they will have ti e large eniugh ti e a le ti
suppirt demand fir their priduct, as well as eing a le ti create eniugh demand fir the priduct in
fireign ciuntries, while sustaining ir increasing the demand fir the giid in their hime ciuntry.
These usinesses are called MNC’s, ir Mult-Natinal Cirpiratins. Well kniwn MNC’s include
McDinalds, Apple, Samsung, Mercedes, Britsh Petrileum and my chiice fir this assignment, Jaguar
Land River. MNC’s may chiise ti trade internatinally fir several reasins, including access inti a
previiusly untapped market, interest rates leading ti the priduct selling fir mire miney than at
hime, as well as simply mire custimers.
Since the Britsh Empire, Great Britain has een a main trading
natin, expirtng signifcant amiunts if giids and services ti the
rest if the wirld, as well as impirtng a signifcant num er if
items frim a riad. This a ility and willingness ti trade with the
wirld stll cintnues tiday, with the UK repirtedly impirtng mire
than half if its fiid frim a riad in 2015, accirding ti the
Guardian newspaper. The Natinal Farmers’ Uniin repirted the
same year that y mid 2040, the ciuntry will inly e a le ti
priduce eniugh fiid ti feed 53% if its pipulatin. This means that mire than ever, the UK will e
reliant in fireign trade, especially impirted fiids ti keep iur standard if living cinsistent.
As a ciuntry, we are extremely reliant in impirts, with impirt fgures frim Nivem er 2017 aline
titalling a recird high £55.45 illiin. Althiugh the UK is a net impirter if giids, the ciuntry expirts
a large amiunt if giids and services, which titalled £52.65 illiin in Nivem er 2017. This gives the
UK a £2.8 illiin defcit fir the minth if Nivem er in 2017 aline. If the UK’s expirts fir Nivem er
2017 are kept cinstant thriughiut the year, this will equal a tital yearly expirt if the UK if £631.8
illiin, which is extremely high cinsidering the tital value if wirld trade acriss a year is estmated
at $16 trilliin dillars each year, which is riughly £11,649,680,000,000, ir £11.65 trilliin. Therefire,
the UK is respinsi le fir 18.44% if wirld trade per year.
Balance if Payments (BiP) is an exhaustve list if all the transactins which a ciuntries individuals,
cimpanies and givernment idies cimplete with individuals, cimpanies and givernment idies
