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Why trade internationally?

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Unit 5 – International Business

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Subido en
7 de junio de 2021
Número de páginas
9
Escrito en
2021/2022
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Ensayo
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Grado
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Samer Abou Ghaida




Assignment brief –NQF BTEC

Assignment front sheet

Qualification Unit number and title

BTEC Level 3- National Foundation Diploma in Business
5 – International Business
BTEC National- Extended Diploma in Business
Learner name Assessor name

Veena Pandey

Date issued Hand in deadline (FINAL) Submitted on

5th February 2021 26th February 2021

Assignment title Why trade internationally?
In this assessment you will have opportunities to provide evidence against the following criteria.
Indicate the page numbers where the evidence can be found.

Criteria To achieve the criteria the evidence must show that the Task Evide
reference learner is able to: no. nce


5/AB.D1 Evaluate the impact of globalisation on a business. 1


Analyse the barriers of operating internationally for two
5/B.M2 1
contrasting businesses.

Analyse the support that is available to contrasting
5/A.M1 1
businesses that operate internationally.

5/B.P4 Explore the role of trading blocs on international trade. 1

Explain the main features of globalisation that affect two
5/B.P3 1
contrasting businesses.
Explain the types of finance available for international
5/A.P2 1
business.
Explain why two businesses operate in contrasting
5/A.P1 1
international markets.
Learner declaration


I certify that the work submitted for this assignment is my own. I have clearly referenced any
sources used in the work. I understand that false declaration is a form of malpractice.


Learner signature: Samer Abou Ghaida Date:

, Samer Abou Ghaida


Jamaican Coffee Trading Co (JCT) and Grenada Chocolate Company (GCC)


In this document, I will be discussing the activities of two contracting businesses that
operate on an international scale. I will also be mentioning their structure, the activities they
place and the market they operate in.

Different Business Activities include multinational companies, importing business, exporting
business and associated businesses. Multinational companies’ functions when a business
operates in several countries but managed from one country. Businesses that access at least
a quarter of its revenue from operations outside of its country is stated as a multinational
Company. Importing businesses includes a company receiving goods from other countries
using their products to trade in their country when the advantage of this is that it will allow
the business to trade with products, they cannot find in their very own country. Exporting
businesses include a company that trade their merchandise, goods and services in a country
that is not their origin. For example, if JCT were to export coffee sets that have been
produced in Jamaica and exporting them to another country in the Europe to sell. The
advantage of exporting to other countries is that the businesses exporting will see better
business opportunities in other countries.

Jamaican Coffee Trading Co (Jamaican Blue Mountain) (JCT)

This is a Jamaican multinational company that manufacturers, develops and sells coffee to
multiple countries. It was established in Jamaica and is one of the top five big coffee
businesses in that type of industry. This company works in a hierarchical structure which
indicates that the divisional characteristics refer to the product-based groupings within the
company. This structure results into effective and efficient distribution and communication
with one of the main reasons JCT expanded internationally was to increase its market share
and brand image. The product they offer is a type of coffee grown in the Blue
Mountains of Jamaica which was developed in 1728. In order to export to different
countries, JCT must be first licensed by the Coffee Industry Board, in order to export the
product. In 2018, coffee exports for Jamaica were 17,595 thousand US dollars. Over the past
few years, this company was able to build its brand and market share through expansion
with 80% of its products being exported to Japan. JCT has built its reputation over the past
few decades which allowed it to be one of the most expensive and demanded coffees in the
world.

By expanding to several countries such as Japan, China and the UK, JCT was able to increase
their chances of reaching out to new customers on a global scale which is known to be
access to new markets. This allows them to access more potential customers from different
regions and states. For example, JCT targeted individuals and businesses through the
different cultural diversity restaurants. This generic strategy of broad differentiation allowed
the company to maintain its competitive advantage and position as a high-quality retail
product. This allowed them reach different markets, producing more opportunities to
develop and expand their Coffee based products. Another major reason JCT operates in
international markets is the opportunity to have a comparative advantage. A comparative
advantage is the process in which a business produces goods and services in more than one
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