Business Environment Analysis | Canadian MNC

Running head: Business Environment
Business Environment
Name of the Student
Name of the University
Author Note

BUSINESS ENVIRONMENT
1
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Four pillars of international trade.............................................................................................2
Two important pillars for the business of Enbridge..................................................................3
Conclusion.......................................................................................................................................4
Reference list...................................................................................................................................5

BUSINESS ENVIRONMENT
2
Introduction
The objective of this paper is to analyze the role of different parameters, including
suppliers, customers, goods and services for a multinational Canadian company. In trade finance,
all these parameters are considered as important business pillars of a company. Enbridge Inc. is
the considerate international company for this paper. This Canadian international company
operates through diversified business segments, involving generation, distribution and
transportation of energy. It is the largest supplier of liquid hydrocarbons and crude oil to the
North America. The company owns largest distribution network system natural gas both in
Canada and the USA. The continuous pace in the revenue growth reflects the company’s strong
potentiality in oil market. Total revenue has been recorded at approximately $6 billion in 2019.
Discussion
Four pillars of international trade
Goods: International trade permits the countries to participate in the commodity trading. The
country generally exchanges those products which have lower opportunity cost. The producers
should have comparative advantages producing those goods. This implies that traders will earn
optimum profit if they trade products to other country (Baier, Bergstrand & Feng, 2014). In this
regard, exchange rate is the key determinant to control the trade in the international market. For
example, devaluation of exchange rate slaps down the revenue of the domestic traders in the
international trade.
Services: Human capital and technology are the important parameters of service. Every
economy is either capital-intensive or labor intensive. The capital-intensive country export
technology, whereas, the labor-intensive country attains to export labor to other economies. On