INTERNATIONAL BUSINESS
ASSIGNMENT 1
Louie Palmer U00056968
,Introduction
In this report I will be analysing two different international businesses, Apple
and Tesla, and factors which affect them such as financing, support,
globalisation, trading blocs and barriers to international business. Apple are
primarily located in California whilst Tesla are located in places all over the
world such as Nevada, Shanghai and Berlin.
, International Business
There are multiple types of business activity; exporting businesses, importing
businesses, multinational enterprises, and associated businesses.
Exporting businesses involves a business sending things overseas. Exporting
businesses can massively benefit from operating within the EU due to being
able to move goods freely without custom checks. Due to Tesla now operating
in Berlin, a city within the EU, they will now be able to export their cars
throughout Europe with way more ease due to the lack of restrictions such as
custom checks. If a business decides to export outside of the EU, different rules
may apply. These rules can include export declaration, export licence, paying
custom duties, and paying taxes in the country you are exporting to.
Importing businesses bring in goods from overseas, examples of this could be
drop shipping businesses such as Amazon and Ali-express. UK businesses
importing goods from the EU do not need a licence or to pay import duties,
however they do have to pay VAT. VAT stands for value added tax. In order to
decide how much VAT is required, commodities (a raw material or product that
can be bought or sold) are given codes in order to establish a system of fair
VAT. Examples of commodity codes include 64 for footwear or 10 for leather
(business, n.d.). On the other hand, importing goods from outside of the EU
requires; an import declaration, an import licence, commodity codes, custom
duties, and VAT.
Multinational enterprises are businesses who operate in more than one
country and often in different markets. Every country they enter will have to
be approached individually. This is due to factors such as different rules and
regulations, different taxes, different laws, and different cultures. Apple and
Tesla are both multinational enterprises. Neither Apple nor Tesla adapt their
products in different regions. Furthermore, Apple tend to use a “one size fits all
approach” (brand, n.d.). However, different fees and rules does have an impact
on Apple and Tesla’s products. For example, in China, a Tesla costs £29,000,
whilst in the USA it costs £24,000.
Associated businesses are businesses who support other businesses through
things such as offering services or working as partners. Often businesses will
offer logistics to those operating internationally. Logistics means the
movement of goods.
One of Apple’s many associated businesses is Intel. The partnership begun in
July 2019, and it involves Intel supplying Apple’s processors and Apple helping
Intel with the development of 5G networking (investopedia, n.d.).
ASSIGNMENT 1
Louie Palmer U00056968
,Introduction
In this report I will be analysing two different international businesses, Apple
and Tesla, and factors which affect them such as financing, support,
globalisation, trading blocs and barriers to international business. Apple are
primarily located in California whilst Tesla are located in places all over the
world such as Nevada, Shanghai and Berlin.
, International Business
There are multiple types of business activity; exporting businesses, importing
businesses, multinational enterprises, and associated businesses.
Exporting businesses involves a business sending things overseas. Exporting
businesses can massively benefit from operating within the EU due to being
able to move goods freely without custom checks. Due to Tesla now operating
in Berlin, a city within the EU, they will now be able to export their cars
throughout Europe with way more ease due to the lack of restrictions such as
custom checks. If a business decides to export outside of the EU, different rules
may apply. These rules can include export declaration, export licence, paying
custom duties, and paying taxes in the country you are exporting to.
Importing businesses bring in goods from overseas, examples of this could be
drop shipping businesses such as Amazon and Ali-express. UK businesses
importing goods from the EU do not need a licence or to pay import duties,
however they do have to pay VAT. VAT stands for value added tax. In order to
decide how much VAT is required, commodities (a raw material or product that
can be bought or sold) are given codes in order to establish a system of fair
VAT. Examples of commodity codes include 64 for footwear or 10 for leather
(business, n.d.). On the other hand, importing goods from outside of the EU
requires; an import declaration, an import licence, commodity codes, custom
duties, and VAT.
Multinational enterprises are businesses who operate in more than one
country and often in different markets. Every country they enter will have to
be approached individually. This is due to factors such as different rules and
regulations, different taxes, different laws, and different cultures. Apple and
Tesla are both multinational enterprises. Neither Apple nor Tesla adapt their
products in different regions. Furthermore, Apple tend to use a “one size fits all
approach” (brand, n.d.). However, different fees and rules does have an impact
on Apple and Tesla’s products. For example, in China, a Tesla costs £29,000,
whilst in the USA it costs £24,000.
Associated businesses are businesses who support other businesses through
things such as offering services or working as partners. Often businesses will
offer logistics to those operating internationally. Logistics means the
movement of goods.
One of Apple’s many associated businesses is Intel. The partnership begun in
July 2019, and it involves Intel supplying Apple’s processors and Apple helping
Intel with the development of 5G networking (investopedia, n.d.).
