Pearson BTEC Level 3 National Extended Diploma in Business
Unit 5: International Business
Why trade internationally?
You have been asked to prepare a report entitled ‘Why trade
internationally?’ To do this you will need to gather
comprehensive research evidence into businesses that trade
internationally.
This research should include businesses that are located in one
country but trade in other countries, and businesses that have
trading locations around the world.
From this research choose two businesses on which to base
your report. These must operate in contrasting international
markets.
The report should incorporate your research and contrast the
two chosen businesses. It should be written in three sections:
Section One:
● the operation of each business, to include the
Task 1
structure, activities, and chosen market
● the reasons each conducts business internationally
● the types of finance available to each
● an analysis of the support that is available to each
Section Two:
● the role of trading blocs on international trade
● the main features of globalisation that affect each
business
● an analysis of the barriers to each of operating
internationally
Section Three (for one of these businesses only):
an evaluation of the impact of globalisation on the business
over the last 5 - 10 years, considering all relevant factors.
Criteria covered by this task:
Unit/Criteria
To achieve the criteria you must show that you are able to:
reference
5/AB.D1 Evaluate the impact of globalisation on a business.
Analyse the barriers to two contrasting businesses of operating
5/B.M2
internationally.
Analyse the support that is available to contrasting businesses that
5/A.M1
operate internationally.
, Pearson BTEC Level 3 National Extended Diploma in Business
Unit 5: International Business
Why trade internationally?
5/B.P4 Explore the role of trading blocs on international trade.
Explain the main features of globalisation that affect
5/B.P3
two contrasting businesses.
5/A.P2 Explain the types of finance available for international business.
5/A.P1 Explain why two businesses operate in contrasting international.
P1 - Explain why two businesses operate in contrasting international.
International business is when a business operates in more than one country. 2 successful
businesses that I can vouch for being successful international businesses would be Apple
and the Co-op. Therefore, I will be using Apple and the Co-op for this assignment. Reasons
why a business operates internationally would be to import (bring products into the country),
export (sending products overseas), operate in different countries or to be involved in the
support of other businesses (associated businesses, supporting other organisations through
services or partnership. For my selected businesses, I can confidently say that my selected
businesses operate internationally for all of the 4 reasons mentioned above.
When importing, in other words when bringing products into a/the country, Apple would be
bringing products into a/the country including iPhones and Airpods. By Apple being an
international business, Apple has global presence and movements but Apple’s products are
produced and engineered within the US, and made up out of parts from different states and
countries, commonly from countries within the Asia Pacific region including China, Malaysia,
Thailand and Korea. Apple has a slogan of “Think different”, on its own, it is vivid and self
explanatory. What I mean by this is Apple is making all projects international to invite new or
scarce knowledge, skills, abilities and other characteristics (KSAO’s). By inviting these new
or scarce knowledge, skills, abilities and other characteristics it will seem to be a ‘catena’ of
dedication which would later on hold value to a product, service or Apple itself. For example,
Apple is seen as a luxury item to the people of China and is seen as an interpretation of
wealth within an individual.
However, due to the United Kingdom leaving the European Union (a trading bloc or custom
union which now includes 27 countries excluding the UK), there has been some difficulties
when importing from the United Kingdom. When the UK was part of the trading bloc, this
allowed the UK to trade freely. What I mean by this is, the UK now has to have licences for
every importer and products, VAT must be added to products or services, a commodity code
(a code which is on raw materials on products including metals and plastics) is needed on
the products). This will now cost time and money for the business.
When exporting, in other words when sending products overseas, Apple would be sending
products from one country to another. Due to the United Kingdom leaving the European
, Pearson BTEC Level 3 National Extended Diploma in Business
Unit 5: International Business
Why trade internationally?
Union (a trading bloc), when exporting from the UK to another country, Apple would have to
have an export declaration, export licence, must pay customs duties and now have to pay
taxes in countries where the products are being imported in (or exported to).
When Apple is operating internationally to offer support to other organisations/businesses
through support whether it is supplying Apple products, using the Apple Genius Bar on
multiple Apple products or even bonding a relationship to become partnering businesses
(partnerships) is crucial and will definitely increase reputation within the market (or market
share). For example, Apple has partnered up with Salesforce, a CRM Software & Cloud
Computing Solutions company, who operate internationally within countries including
Europe, the Middle East and Africa.The reason for Salesforce having a partnership would be
to create a sense of exclusivity to iPhone and iPad users, this would benefit Apple but for
Salesforce, Salesforce’s app was redesigned and due to vast amounts of development and
innovation, there is 2 trillion transactions on Salesforce stated on the Apple website!
When importing, in other words when bringing products into a/the country, the Co-op would
be brining in supplements such as McGuigan wine which is manufactured from Australia to
stores of Co-op and I believe that fruit and vegetables comes from abroad such as: bananas,
honey, coffee, oranges, Cocoa bean, cocoa, cotton, dried and fresh fruits and vegetables,
juices, nuts and oil seeds, quinoa, rice, spices, sugar, tea, and wine. If I was to categorise
these products, I believe that these products would belong to products that are grown and
produced by certificated farmers by the Fair Trade. The Co-op has a slogan of “It’s what we
do” and is motivated for the greater good by consumers. This shows that the Co-op is all
ears open and are willing to make a greater change in society such as becoming the biggest
supporter of the Fairtrade. With Fairtrade being an ethical organisation as well as the Co-op,
In 2004, the Co-op was the first business, retailer, who had started selling Fairtrade sugar.
Now, the sugars that the Co-op sells within their supermarkets or smaller retail stores are
purely Fairtrade!
When exporting, in other words when sending products overseas, the Co-op would be
sending products from one country to another. Due to the United Kingdom leaving the
European Union (a trading bloc), when exporting from the UK to another country, the Co-op
would have to have an export declaration, export licence, must pay customs duties and now
have to pay taxes in countries where the products are being imported in (or exported to).
When the Co-op is operating internationally to offer support to other organisations or
businesses through support whether it is supplying long life products or donating money for
a greater good. An example of the Co-op offering support to an organisation would be the
Scottish Association for Mental Health. The Co-op has a charity partnership with SAMH to
inspire and to bring communities together to improve mental health wellbeing. With the
Co-op being an ethical business it is only right for them to be supporting a charity or an
organisation who is also ethical.
Generally speaking, there are numerous reasons why a business should and would conduct
international business. I can narrow these reasons down to 11 which include: Fiscal benefits,
Diversification to increase market share, Preferential tax rates, Growth, Economies of scale,
Comparative advantage, Technological dominance, Additional revenue streams, Market
leadership, Brand exploitation and Access to new markets.
Fiscal benefits is an incentive offered to any business that is importing and exporting,
depending on circumstance. For instance, if the business is willing to export into another
Unit 5: International Business
Why trade internationally?
You have been asked to prepare a report entitled ‘Why trade
internationally?’ To do this you will need to gather
comprehensive research evidence into businesses that trade
internationally.
This research should include businesses that are located in one
country but trade in other countries, and businesses that have
trading locations around the world.
From this research choose two businesses on which to base
your report. These must operate in contrasting international
markets.
The report should incorporate your research and contrast the
two chosen businesses. It should be written in three sections:
Section One:
● the operation of each business, to include the
Task 1
structure, activities, and chosen market
● the reasons each conducts business internationally
● the types of finance available to each
● an analysis of the support that is available to each
Section Two:
● the role of trading blocs on international trade
● the main features of globalisation that affect each
business
● an analysis of the barriers to each of operating
internationally
Section Three (for one of these businesses only):
an evaluation of the impact of globalisation on the business
over the last 5 - 10 years, considering all relevant factors.
Criteria covered by this task:
Unit/Criteria
To achieve the criteria you must show that you are able to:
reference
5/AB.D1 Evaluate the impact of globalisation on a business.
Analyse the barriers to two contrasting businesses of operating
5/B.M2
internationally.
Analyse the support that is available to contrasting businesses that
5/A.M1
operate internationally.
, Pearson BTEC Level 3 National Extended Diploma in Business
Unit 5: International Business
Why trade internationally?
5/B.P4 Explore the role of trading blocs on international trade.
Explain the main features of globalisation that affect
5/B.P3
two contrasting businesses.
5/A.P2 Explain the types of finance available for international business.
5/A.P1 Explain why two businesses operate in contrasting international.
P1 - Explain why two businesses operate in contrasting international.
International business is when a business operates in more than one country. 2 successful
businesses that I can vouch for being successful international businesses would be Apple
and the Co-op. Therefore, I will be using Apple and the Co-op for this assignment. Reasons
why a business operates internationally would be to import (bring products into the country),
export (sending products overseas), operate in different countries or to be involved in the
support of other businesses (associated businesses, supporting other organisations through
services or partnership. For my selected businesses, I can confidently say that my selected
businesses operate internationally for all of the 4 reasons mentioned above.
When importing, in other words when bringing products into a/the country, Apple would be
bringing products into a/the country including iPhones and Airpods. By Apple being an
international business, Apple has global presence and movements but Apple’s products are
produced and engineered within the US, and made up out of parts from different states and
countries, commonly from countries within the Asia Pacific region including China, Malaysia,
Thailand and Korea. Apple has a slogan of “Think different”, on its own, it is vivid and self
explanatory. What I mean by this is Apple is making all projects international to invite new or
scarce knowledge, skills, abilities and other characteristics (KSAO’s). By inviting these new
or scarce knowledge, skills, abilities and other characteristics it will seem to be a ‘catena’ of
dedication which would later on hold value to a product, service or Apple itself. For example,
Apple is seen as a luxury item to the people of China and is seen as an interpretation of
wealth within an individual.
However, due to the United Kingdom leaving the European Union (a trading bloc or custom
union which now includes 27 countries excluding the UK), there has been some difficulties
when importing from the United Kingdom. When the UK was part of the trading bloc, this
allowed the UK to trade freely. What I mean by this is, the UK now has to have licences for
every importer and products, VAT must be added to products or services, a commodity code
(a code which is on raw materials on products including metals and plastics) is needed on
the products). This will now cost time and money for the business.
When exporting, in other words when sending products overseas, Apple would be sending
products from one country to another. Due to the United Kingdom leaving the European
, Pearson BTEC Level 3 National Extended Diploma in Business
Unit 5: International Business
Why trade internationally?
Union (a trading bloc), when exporting from the UK to another country, Apple would have to
have an export declaration, export licence, must pay customs duties and now have to pay
taxes in countries where the products are being imported in (or exported to).
When Apple is operating internationally to offer support to other organisations/businesses
through support whether it is supplying Apple products, using the Apple Genius Bar on
multiple Apple products or even bonding a relationship to become partnering businesses
(partnerships) is crucial and will definitely increase reputation within the market (or market
share). For example, Apple has partnered up with Salesforce, a CRM Software & Cloud
Computing Solutions company, who operate internationally within countries including
Europe, the Middle East and Africa.The reason for Salesforce having a partnership would be
to create a sense of exclusivity to iPhone and iPad users, this would benefit Apple but for
Salesforce, Salesforce’s app was redesigned and due to vast amounts of development and
innovation, there is 2 trillion transactions on Salesforce stated on the Apple website!
When importing, in other words when bringing products into a/the country, the Co-op would
be brining in supplements such as McGuigan wine which is manufactured from Australia to
stores of Co-op and I believe that fruit and vegetables comes from abroad such as: bananas,
honey, coffee, oranges, Cocoa bean, cocoa, cotton, dried and fresh fruits and vegetables,
juices, nuts and oil seeds, quinoa, rice, spices, sugar, tea, and wine. If I was to categorise
these products, I believe that these products would belong to products that are grown and
produced by certificated farmers by the Fair Trade. The Co-op has a slogan of “It’s what we
do” and is motivated for the greater good by consumers. This shows that the Co-op is all
ears open and are willing to make a greater change in society such as becoming the biggest
supporter of the Fairtrade. With Fairtrade being an ethical organisation as well as the Co-op,
In 2004, the Co-op was the first business, retailer, who had started selling Fairtrade sugar.
Now, the sugars that the Co-op sells within their supermarkets or smaller retail stores are
purely Fairtrade!
When exporting, in other words when sending products overseas, the Co-op would be
sending products from one country to another. Due to the United Kingdom leaving the
European Union (a trading bloc), when exporting from the UK to another country, the Co-op
would have to have an export declaration, export licence, must pay customs duties and now
have to pay taxes in countries where the products are being imported in (or exported to).
When the Co-op is operating internationally to offer support to other organisations or
businesses through support whether it is supplying long life products or donating money for
a greater good. An example of the Co-op offering support to an organisation would be the
Scottish Association for Mental Health. The Co-op has a charity partnership with SAMH to
inspire and to bring communities together to improve mental health wellbeing. With the
Co-op being an ethical business it is only right for them to be supporting a charity or an
organisation who is also ethical.
Generally speaking, there are numerous reasons why a business should and would conduct
international business. I can narrow these reasons down to 11 which include: Fiscal benefits,
Diversification to increase market share, Preferential tax rates, Growth, Economies of scale,
Comparative advantage, Technological dominance, Additional revenue streams, Market
leadership, Brand exploitation and Access to new markets.
Fiscal benefits is an incentive offered to any business that is importing and exporting,
depending on circumstance. For instance, if the business is willing to export into another
