Assignment 2
Unit 5: international business
Level 3 business
Ismail Ali – 19077783
Context Page
,− Page 3 – 16: P5
− Page 17 – 20: P6, P7
− Page 21 – 27: M3, M4
− Page 28 – 45: D2 & D3
,Introduction
For this assignment I will have to draft an article about cultural differences and a country that
businesses should trade with. This will be done with research and situational analysis. I will have to
select 1 business and talk about in 2 contrasting countries. I will have to make sure that I implement
references which are suitable and valid.
External factors influencing a business's international trade – P5
Political Factors
Different countries have different political factors that affect their international trading. For example,
most countries do not allow the promotion of any proper Ganda as this is unethical and will cause a
lot of controversy.
North Korea
Countries such as North Korea are a dictatorship as the head of the country is an autocratic leader
meaning he takes no questions and does what he wants. A country like the UK is a democracy which
means the people living in the country have the right to vote and give their input. Other countries such
as the USA are classed as a Republic. This is because they do not have a King or Queen meaning they
are a republic. Lastly, countries such as China are a communist country. This means that the people
within the country believe everything is a part of the community and should be shared. Political
factors can affect international trade as some countries may not allow any imports or exports to the
country at all. For example, the UK will not be allowed to trade with a country such as North Korea as
the country is closed off to the outside world meaning other countries cannot trade with it. This will
affect international trading as if countries want to trade with this country, they will not be able to since
their political system will not allow them to.
For Apple, trading with a country such as North Korea will be exceedingly difficult as they will not be
allowed to set up a branch in that country, partially due to heavy propaganda and surveillance on its
citizens as seen in the article below where they have challenged Apple with its own version to avoid
, usage of the companies products by its citizens
This also means they will also not be able to export their products to this country without any
restrictions and that is if they even allow international trading. This will affect Apple as it will not
allow them to gain any profits since the country will not give them a new stream of income.
Therefore, a country such as North Korea will not allow Apple to operate in their country as their
political system will not allow it.
U.K
In contrast to North Korea, the UK will allow Apple to operate within the country. This is because the
UK are a democracy meaning they are allowed to trade with oversea businesses. This shows that
Apple can set up their business in this country and have another source of income since the country's
political system will allow them to do so. Therefore, in comparison to North Korea, it will be much
easier for Apple to operate in the UK as it much less stressful. Recently the UK government have
decided they want to leave the EU under the Brexit law. This means that the UK will not have free
trade with the countries in Europe since they have left the EU. This shows that, when Apple operate
within the UK, and they wish to trade with countries in the EU they will have to pay the international
tax implemented by the EU since they are not a part of it anymore. This will affect Apple negatively
since they will have to pay, and they do not have duty free trading.
Unit 5: international business
Level 3 business
Ismail Ali – 19077783
Context Page
,− Page 3 – 16: P5
− Page 17 – 20: P6, P7
− Page 21 – 27: M3, M4
− Page 28 – 45: D2 & D3
,Introduction
For this assignment I will have to draft an article about cultural differences and a country that
businesses should trade with. This will be done with research and situational analysis. I will have to
select 1 business and talk about in 2 contrasting countries. I will have to make sure that I implement
references which are suitable and valid.
External factors influencing a business's international trade – P5
Political Factors
Different countries have different political factors that affect their international trading. For example,
most countries do not allow the promotion of any proper Ganda as this is unethical and will cause a
lot of controversy.
North Korea
Countries such as North Korea are a dictatorship as the head of the country is an autocratic leader
meaning he takes no questions and does what he wants. A country like the UK is a democracy which
means the people living in the country have the right to vote and give their input. Other countries such
as the USA are classed as a Republic. This is because they do not have a King or Queen meaning they
are a republic. Lastly, countries such as China are a communist country. This means that the people
within the country believe everything is a part of the community and should be shared. Political
factors can affect international trade as some countries may not allow any imports or exports to the
country at all. For example, the UK will not be allowed to trade with a country such as North Korea as
the country is closed off to the outside world meaning other countries cannot trade with it. This will
affect international trading as if countries want to trade with this country, they will not be able to since
their political system will not allow them to.
For Apple, trading with a country such as North Korea will be exceedingly difficult as they will not be
allowed to set up a branch in that country, partially due to heavy propaganda and surveillance on its
citizens as seen in the article below where they have challenged Apple with its own version to avoid
, usage of the companies products by its citizens
This also means they will also not be able to export their products to this country without any
restrictions and that is if they even allow international trading. This will affect Apple as it will not
allow them to gain any profits since the country will not give them a new stream of income.
Therefore, a country such as North Korea will not allow Apple to operate in their country as their
political system will not allow it.
U.K
In contrast to North Korea, the UK will allow Apple to operate within the country. This is because the
UK are a democracy meaning they are allowed to trade with oversea businesses. This shows that
Apple can set up their business in this country and have another source of income since the country's
political system will allow them to do so. Therefore, in comparison to North Korea, it will be much
easier for Apple to operate in the UK as it much less stressful. Recently the UK government have
decided they want to leave the EU under the Brexit law. This means that the UK will not have free
trade with the countries in Europe since they have left the EU. This shows that, when Apple operate
within the UK, and they wish to trade with countries in the EU they will have to pay the international
tax implemented by the EU since they are not a part of it anymore. This will affect Apple negatively
since they will have to pay, and they do not have duty free trading.
