Unit 5 International Business: Learning Aim A & B
P1- explain why two businesses operate in contrasting international markets
In this part of assignment one, I will explain why two businesses operate in contrasting
international markets. The two business that I have chosen to talk about in my
assignment will be Apple and Tate & Lyle.
International business is any business that carries out commercial activities or transactions
between two or more countries. It involves cross-border transactions of how businesses can
trade goods, services, and technology across national borders to import or export their
goods. It can also be seen in terms of production, where a company can source goods and
services easily from other countries. International business encompasses a full range of
cross-border exchanges of goods, services, or resources between two or more nations.
These exchanges can go beyond the exchange of money for physical goods to include
international transfers of other resources, such as people, intellectual property (e.g.,
patents, copyrights, brand trademarks, and data), and contractual assets or liabilities (e.g.,
the right to use some foreign asset, supply some future service to foreign customers, or
execute a complex financial instrument).
Examples of the most successful international businesses include:
Google
Amazon
Apple
IBM
Coca-Cola
There are eight different types of international business activities:
Exporting
Exporting is the physical transfer of products and services from one location to another via a
customs port while adhering to the regulations of both the country of origin and the country
of destination. An export strategy is appealing since it is just an extension of local activities.
It also reduces the risk factor as well as the capital required. They are categorised as small or
big exports based on the size of the company. They are categorised as single product line
exporters or multiple product line exporters based on the product lines shipped. They are
categorised as single destination or multi-designed exports based on the destination of their
shipments.
importing
Importing refers to the process of purchasing goods or services from overseas and bringing
them into another country. Imports are important for the economy because they allow a
country to supply non-existent, scarce, high cost or low quality of certain products or
services, to its market with products from other countries. An example of an import are
goods brought into the UK in exchange for money leaving the UK economy.
,Multinational enterprises
A multinational corporation, often known as a multinational firm, is an international
corporation with operations in at least two nations. Some authorities define a multinational
firm as any company having a global branch; others limit the term to enterprises that
generate at least a quarter of their income outside of their home country.
Many global corporations are headquartered in industrialized countries. Multinationals,
according to proponents, provide high-paying employment and technologically advanced
commodities in nations that would not otherwise have access to such opportunities or
goods.
Licensing
A licensing agreement is an arrangement in which a licensor licenses intellectual property
(patents, innovations, formulae, methods, designs, copyrights, and trademarks) to another
business for a certain length of time in exchange for a fee from the licensee. After acquiring
such a commanding position internationally, the licensor grants such license. By licensing,
the domestic firm avoids the expenses and dangers of entering international markets on its
own, while still earning royalties. The rewards on licensing are minimal; the disadvantage of
this arrangement is the possibility of providing important technological information to
foreign businesses and losing the control over it.
Franchising
Franchising is a specific kind of licensing in which the franchiser not only transfers the
intangible property to the franchise but also requires the franchise to agree to follow
rigorous business regulations. The franchiser provides the majority of the goods and the
following services to the franchise: trademarks, operating systems, and product brand
name. Licensing works well for manufacturing organizations, but it is a superior alternative
for service or retail enterprises looking to expand internationally. The franchises
involvement is restricted to supplying the concept, technology, and training in the
previously established model.
Associated businesses
Associated businesses are where sometimes businesses will offer support to other
organisations through offering services or working in partnership. Businesses that associate
with each other’s to help with international trade may offer specialist services such as those
relating to marketing or logistics. Logistics refers to the movement of people, goods or
facilities.
Foreign direct investment (FDI)
, Foreign direct investment refers to operations in one country that are controlled by entities
in a foreign country. FDI is a business’s decision to acquire a substantial stake in a foreign
business or to buy it outright in order to expand its operations to a new region.
Joint ventures and strategic partnerships
A joint venture is a contract between two parties, one is an international company while
another company is local to where the business has to be conducted. Both parties
contribute to the equity and management of the company. As a result, both share the profit
as well. These parties can mutually decide the percentage of equity and profit-sharing.
To begin this report, I will be talking about my first company which is Tate & Lyle. Tate &
Lyle is a British-born corporation with its headquarters on 1 Kingsway in the heart of
London. Tate & Lyle is a global supplier of food and beverage ingredients to industrial
markets in the United Kingdom and most other parts of the world. Its origins can be traced
back to 1859, when Henry Tate and John Wright formed a partnership as sugar refiners in
Manesty Lane, Liverpool, under the name Henry Tate & Sons. After 10 years, the two sons
reformed the firm into Tate & Lyle. It began to diversify in the 1970s and finally readjusted
its sugar industry in 2010. It specializes in transforming basic materials like maize and
tapioca into components that add flavour, texture, and nutrition to food and beverages.
They also offer significant goods such syrups and white Fairtrade granulated sugars.
Financially, the company made £296 million in earnings before tax, with total revenues of
£2,882 million. Finally, the company's target market includes healthy living and organized
living persons who participate in physical activities such as running, cycling, and sports from
the ages of 12 to 70, and their goods are available to people of any gender and ethnicity.
The business operates in developed countries, where they source their primary raw material
of raw cane sugar and transport the materials back to their refineries in Europe.
Lastly, I believe that Tate and Lyles' decision to expand their operations internationally led
to the company's success in the United Kingdom at the time of its operations. Because the
company is a supplier of food and beverage ingredients to industrial markets, they had a
clear opportunity to expand their products and services to the international countries where
they operate in, in order to raise awareness of the company and allow it to gain notoriety
and profit. Furthermore, the international markets in which Tate and Lyle have decided to
P1- explain why two businesses operate in contrasting international markets
In this part of assignment one, I will explain why two businesses operate in contrasting
international markets. The two business that I have chosen to talk about in my
assignment will be Apple and Tate & Lyle.
International business is any business that carries out commercial activities or transactions
between two or more countries. It involves cross-border transactions of how businesses can
trade goods, services, and technology across national borders to import or export their
goods. It can also be seen in terms of production, where a company can source goods and
services easily from other countries. International business encompasses a full range of
cross-border exchanges of goods, services, or resources between two or more nations.
These exchanges can go beyond the exchange of money for physical goods to include
international transfers of other resources, such as people, intellectual property (e.g.,
patents, copyrights, brand trademarks, and data), and contractual assets or liabilities (e.g.,
the right to use some foreign asset, supply some future service to foreign customers, or
execute a complex financial instrument).
Examples of the most successful international businesses include:
Amazon
Apple
IBM
Coca-Cola
There are eight different types of international business activities:
Exporting
Exporting is the physical transfer of products and services from one location to another via a
customs port while adhering to the regulations of both the country of origin and the country
of destination. An export strategy is appealing since it is just an extension of local activities.
It also reduces the risk factor as well as the capital required. They are categorised as small or
big exports based on the size of the company. They are categorised as single product line
exporters or multiple product line exporters based on the product lines shipped. They are
categorised as single destination or multi-designed exports based on the destination of their
shipments.
importing
Importing refers to the process of purchasing goods or services from overseas and bringing
them into another country. Imports are important for the economy because they allow a
country to supply non-existent, scarce, high cost or low quality of certain products or
services, to its market with products from other countries. An example of an import are
goods brought into the UK in exchange for money leaving the UK economy.
,Multinational enterprises
A multinational corporation, often known as a multinational firm, is an international
corporation with operations in at least two nations. Some authorities define a multinational
firm as any company having a global branch; others limit the term to enterprises that
generate at least a quarter of their income outside of their home country.
Many global corporations are headquartered in industrialized countries. Multinationals,
according to proponents, provide high-paying employment and technologically advanced
commodities in nations that would not otherwise have access to such opportunities or
goods.
Licensing
A licensing agreement is an arrangement in which a licensor licenses intellectual property
(patents, innovations, formulae, methods, designs, copyrights, and trademarks) to another
business for a certain length of time in exchange for a fee from the licensee. After acquiring
such a commanding position internationally, the licensor grants such license. By licensing,
the domestic firm avoids the expenses and dangers of entering international markets on its
own, while still earning royalties. The rewards on licensing are minimal; the disadvantage of
this arrangement is the possibility of providing important technological information to
foreign businesses and losing the control over it.
Franchising
Franchising is a specific kind of licensing in which the franchiser not only transfers the
intangible property to the franchise but also requires the franchise to agree to follow
rigorous business regulations. The franchiser provides the majority of the goods and the
following services to the franchise: trademarks, operating systems, and product brand
name. Licensing works well for manufacturing organizations, but it is a superior alternative
for service or retail enterprises looking to expand internationally. The franchises
involvement is restricted to supplying the concept, technology, and training in the
previously established model.
Associated businesses
Associated businesses are where sometimes businesses will offer support to other
organisations through offering services or working in partnership. Businesses that associate
with each other’s to help with international trade may offer specialist services such as those
relating to marketing or logistics. Logistics refers to the movement of people, goods or
facilities.
Foreign direct investment (FDI)
, Foreign direct investment refers to operations in one country that are controlled by entities
in a foreign country. FDI is a business’s decision to acquire a substantial stake in a foreign
business or to buy it outright in order to expand its operations to a new region.
Joint ventures and strategic partnerships
A joint venture is a contract between two parties, one is an international company while
another company is local to where the business has to be conducted. Both parties
contribute to the equity and management of the company. As a result, both share the profit
as well. These parties can mutually decide the percentage of equity and profit-sharing.
To begin this report, I will be talking about my first company which is Tate & Lyle. Tate &
Lyle is a British-born corporation with its headquarters on 1 Kingsway in the heart of
London. Tate & Lyle is a global supplier of food and beverage ingredients to industrial
markets in the United Kingdom and most other parts of the world. Its origins can be traced
back to 1859, when Henry Tate and John Wright formed a partnership as sugar refiners in
Manesty Lane, Liverpool, under the name Henry Tate & Sons. After 10 years, the two sons
reformed the firm into Tate & Lyle. It began to diversify in the 1970s and finally readjusted
its sugar industry in 2010. It specializes in transforming basic materials like maize and
tapioca into components that add flavour, texture, and nutrition to food and beverages.
They also offer significant goods such syrups and white Fairtrade granulated sugars.
Financially, the company made £296 million in earnings before tax, with total revenues of
£2,882 million. Finally, the company's target market includes healthy living and organized
living persons who participate in physical activities such as running, cycling, and sports from
the ages of 12 to 70, and their goods are available to people of any gender and ethnicity.
The business operates in developed countries, where they source their primary raw material
of raw cane sugar and transport the materials back to their refineries in Europe.
Lastly, I believe that Tate and Lyles' decision to expand their operations internationally led
to the company's success in the United Kingdom at the time of its operations. Because the
company is a supplier of food and beverage ingredients to industrial markets, they had a
clear opportunity to expand their products and services to the international countries where
they operate in, in order to raise awareness of the company and allow it to gain notoriety
and profit. Furthermore, the international markets in which Tate and Lyle have decided to
