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The article discusses the European Economic Community and their pros and cons, reasons for MNCs internationalizing and the typical challenges encountered. The report also includes a case study on ASDA's expansion into Australia.

SUMMATIVE ASSESSMENT

Table of Contents.
INTRODUCTION...........................................................................................................................3
INDIVIDUAL NOTE 1...................................................................................................................3
Conducting an online research on European Economic Community and their pros & cons.......3
INDIVIDUAL NOTES 2.................................................................................................................4
Critically discussing the reasons for MNCs internationalizing and the typical challenges
encountered..................................................................................................................................4
INDIVIDUAL REPORT.................................................................................................................8
INTRODUCTION ..........................................................................................................................8
MAIN BODY...................................................................................................................................8
Analysation of the domestic market............................................................................................8
Strategy to internationalize..........................................................................................................9
Model of entry, challenged it may find in the ASDA and possible solutions...........................10
Leadership qualities that supports market entry........................................................................11
Conclusion.................................................................................................................................12
INDIVIDUAL REFLECTIVE ESSAY.........................................................................................12
Reflective statement...................................................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Internationalization refer to procedure of designing goods and services that help to meet
the needs of individual customers, whether they are existing or new. This process in turn provide
a lot of benefits to an entrepreneur or a company that take approach to expand their ventures into
new market, where the growth chances accessible in bulk. The current assignment will explain
European Economic community (EEC) and their cons as well as pros. The report will justify
reasons why MNCs internationalize and usually challenged they encounter. Furthermore, the
study will specific reflective statement based on learning from current module.
INDIVIDUAL NOTE 1
Conducting an online research on European Economic Community and their pros & cons.
EEC falls under the category of leading regional companies in the Belgium, which aim is
to bring about economic elements among its member regions (Radeljić, 2021). The organization
was established by Treaty of Rome in 1957, for purpose of fostering economic integration. It has
signed by the France, Netherlands, Belgium, West Germany, Italy, and Luxembourg. Denmark,
Ireland, and UK are one of those nations that joined European economic community in 1973,
followed by the specific nation such as Greece, Spain and Portugal in 1986. The formation of
European economic community provide a lot of benefits to each member as it encompasses key
elements in term of advantages.
Pros-
Single market-
The best thing about EEC is that it may help to eliminate the key challenges related to
trade and simplify the existing trade policies, which enable member regions to make most out of
trade successful (The Advantages of the EEC, 2022). It is fact that European Economic
community appropriately promote free trade within European Union, with specific aim in term of
making nation a single market economy.
Single currency-
Another advantage that EEC provide to its each member state is utilization of single
currency such as Euro. Member states of European Economic community may share Euro and
utilize. They are referred to as euro zone after utilization of single currency, that was introduced
in the market in 1999 and become a key factor in EU integration.
Shared economic policies-

The chosen regional organization take approach to develop common pricing and
economic policies when member states may recover from food shortage (Bruyndonckx and et.al.,
2021). It may provide key advantages to individual person in term of unpredictable succession.
Free movement of products, services and people-
It may enable each member state to take pleasure of free movement of people across
national boundaries that allow them to react international level, which in turn provide several
benefits. It may contribute to increase economic growth level and cater benefit in bulk such as
increasing profitability and productivity as well as progress extent.
Cons-
Inefficient policies-
The biggest drawback of EEC is cost, as the expenses of EU membership to United
Kingdom is approx 15 Billion gross or more than it, which is more than the expectation of other
states.
Problems of Euro-
Another con of European Economic community is current one, as the membership of EU
may do not significantly mean membership of euro. But, European Union may place excellent
emphasis on individual currency.
INDIVIDUAL NOTES 2
Critically discussing the reasons for MNCs internationalizing and the typical challenges
encountered
Internationalization is being described as the process which increases the involvement of
business into the international markets. It is mainly described as expanding the business into the
global markets it is mainly done for expanding domestic market for diversifying products into
different tastes and habits. The business selects the particular country for expanding business into
the other country for transferring the products and services with various resources across other
countries. International of companies are important for diversifying the brand vision of
companies for future growth of the business. Some of the companies internationalise its business
for reducing the labour costs, increasing the demand of various products, in order to gain more
market share of the business also for attaining better profit margins for the multinational
corportaions.

When the business internalized on the global market helps the business by acquiring
various global talents also it helps in making the use of internationalization incentive being
available to businesses. It provided various new resource for generating revenues for business as
in new market various opportunities are available business. MCs are those which are owning
there assets from the home country for internationalising business in the foreign country (Abdi
and Aulakh, 2018). These are companies which are headquartered in home country and having
various sub diaries which operates in more than one country. Some MNC focuses on the
expanding market by joint ventures or franchising or doing partnership with the other business
for expanding the market and business globally. Multi national corporation internationalize its
business as for staying competitive in market for generating more network for creating revenues
by the firm.
There are various reasons as for internationalization of MNCs are:
Increased revenues with high profits and sales margins : Internationalization of the
business by the multinational corporations is done because for expanding the enterprise by
operating more than one country. When expanding business international the MNC operates
various subsidiaries for gaining better revenues from more than one market. As it gives better
opportunities for the company which aids in gaining revenues by grasping the various
opportunity available with grasping the large market share and establish position internationally
(Aguilera and et.al., 2020). The increased revenues by selling various subsidiaries into the
internalisation market for introducing new and differentiated products than offered by
competitors helps in increasing revenues.
Financial incentives: As by expanding business into new markets aids in providing
better financial incentives. Governments of various countries provide better incentives to
business. As for instance some countries does not charge high interest rate for operating MNC in
other countries for operating business into foreign countries. As in Malaysia local companies pay
19% taxes to the government in terms of taxes. But the MNC for operating business only pay
17% taxes. This is just half of the taxes being paid as of corporation in UK. This will lowers the
financials risks as its aids in providing various incentives with low spendings by establishing
subsidiary into other country.
Creating better brand image: This is the most important reason as of operating
business internationally into other global countries is being done by various MNC as for creating

better brand image for the company. As the multinational companies being headquartered in
domestic country and establishing subsidiary into other country globally. This will aids in
generating better relations with the consumer globally as of established companies is being
expanded into other country (Thees, 2022). Also, by adopting better marketing strategy will
helps in achieving the goals for accessing targets audiences which helps in creating strong brand
image by providing better customer services by the company for achieving futures success. As
by creating better brand image helps in grasping large consumer base for MNC aids in serving
large global target market.
New market seeking: For seeking new market is the reason for internalizing MNC into
global market or into other countries. As for internalization of market helps in gaining better
market competition to the company and aids in achieving competitive advantage. furthermore by
expanding the business into international market aids in planning innovative products and
expanding range of products by companies makes accessible for consumers for purchasing better
all seasoned products for staying ahead of the competition that is being occurred into the
international markets. Thus, by internationalising business globally assist MNC for grasping
larger markets.
Economic reasons: Many of the multinational corporations internationalize their
business by establishing various subsidiaries for gaining more profits an better establishing
position in contributing towards economies of scales. Various MNC takes over resources by the
home country also imports various products and materials for better expanding and increasing
sales for providing best satisfaction to consumers by offering products with the latest trends. This
assist in creating better competitive advantage for company by offering various innovative
products at low cost for establishing MNC initially. This will helps in generating more sales for
products and services as being offered with better quality at lower prices will help to gain
competitive advantages by keeping consumers satisfied with better experiences and providing
better and satisfies services to all consumers .
Opportunities for specialization and investment : the MNC internationalise its
business as of grasping various opportunities for specialising various product being produced by
the company as for serving the new market. As various new opportunities of innovating products
will be available with MNC which helps in gaining better experiences for company by
introducing new line of products into market by establishing subsidiaries of the company. As the

company will explore and spark the new innovating ways for upgrading the efficiency for
products and services.
Various challenges being faced by MNC when internalizing business are
Poor economic conditions in foreign country: By establishing MNC globally will
impact business operations with poor economy as this slow down ports margin capacity. With
the poor economic conditions repayments to various creditors of the debts being taken by MNC
impacts at large level. Furthermore, this reduces and limit the growth it also lowers employing
various employees for working in company due to poor economy.
Political risk : The political instability is the major change in internationalising business
into other country by MNC. Changing government attitudes and rules for MNC, also various
uncertainties occurring for operating business into international markets aids in impacting the
revenues generating capacity of the company. This will creates various problems as of increasing
risks for operating business into international markets when the rules and regulations being
imposed by the government is note favourable for the company. As for instance the government
is charging high amount of interest in operating business will lower the revenues and profits
generating capacity by MNC. Various issues such as the unstable government policy, rules and
regulations, rate of interest, and various investments procedures in business affects MNC for
operating business at international level.
Exchanges rate risk: Due to exchange rate risk impacts companies performance of the
MNC for operating business into foreign country. As this risk associated with currency
fluctuations which affect the companies cash flow. also the domestic currency values will not be
equal to the value of the foreign currency, the fluctuation in currency and money value for
operating business will affect internal operations. From this risk investors of business , importing
and exporting of various products, also those business which provides various services to
customers is influenced by currency fluctuations and various financial transactions performed by
various business at national level impacted by risk of fluctuating currencies.
Tax competition: Various competition are faced by the MNC, when various countries
competes for establishing MNC and generating revenues, employing various individuals. For
competing into market counties must offer various incentives of taxes such as tax break,
loopholes, also pledges or better infrastructure for operating MNC into other country (Oliveira

and Johanson, 2021). when these incentives are not given to MNC for operating business
internationally will create challenges for surviving business for long run into other country.
Imperfect market : When MNC establish subsidiary for operating business into other
country, expanding business into those countries in which the business concern is not aware
about various laws, customs, various beliefs and practices for conducting business will hinder
MNC for operating business into international markets. This will affect the business concern in
forecasting needs and latest trend of the business (Nugraheni and et.al., 2022). As various tariffs
and non tariff barriers being enforced on business will lower the profits generating capacity of
the MNC.
Cultural and language barriers : Various language and cultural barriers impact
companies when internationalizing business into other country, different cultures and languages
followed by the citizens of other country will impact various practices, strategies being adopted
by business. By establishing subsidiary of MNC into other country various specific blend of
cultures being adopted by the countries, different practices, preferences, traditions, for
conducting businesses (Cook, Duan and Krivokapic-Skoko, 2021). Thus cultural differences in
country affects consumers behaviour patterns, tastes and preferences also identification of
various opportunities are main cultural risk which impacts MNC for operating business globally.
INDIVIDUAL REPORT
INTRODUCTION
International market is the system of selling goods and services in different countries for
selling its products and services rather than its home country. The chosen organization in the
report is ASDA which is a UK based organization which has its operations in different countries.
ASDA is British retailer that deals with all the different types of home and fashion products. For
this project Australia is going to be the country in which ASDA will expand its operations.
MAIN BODY
Analysation of the domestic market
The analysation of the domestic market which is Australia can be done through Pestle
analysis,
Political :
The government in Australia is considered to be responsible for affecting the different
factors in ASDA. This is due to the general representation of the policies of the country. The

policies of Australia is different from UK (Capobianco and et.al., 2021). This also effects the
taxation rules and all kinds of factors which are related to the treatments of refugees.
Economical :
Economically the Australia stands as the 13th largest economy which is able to grow. Due
to the strong performance of the economy. The exchange rate of the country is also the factor
which influences the organization and its growth. It affects the cost of the organization
depending on the position of their suppliers.
Social :
The social preferences of the individuals of this country is different from the people in
UK. In this country the population density is also very low and thus, there are fewer consumers
in the country. This also effects the income level of the organization and is considered to be the
factor which provides the business with growth opportunities (Casañ, Alier and Llorens, 2021)
Technological :
Development of new technologies in the country and its introduction of in the Australian
retail market is also a factor which influences the growth of the market. The laws of the country
also restricts the use of certain technology which can also be the factor that affects the growth of
the organization and its operations.
Environment :
Environmentally this country is very diverse and thus, can be seen to effect the operations
of the organization. It is very important for ASDA to make sure that its operations are not
impacting the environment negatively (PEST Analysis of Australia: A Brief Look into Politics,
Economy, Society and Technology, 2019)
Legal :
The laws of Australia are very different from UK. This then directly effects the growth of
the organization and its options which it considers for its business operations. It is important for
the business to reconsider its policies which can be different from the laws.
Strategy to internationalize
Different theories can be applied for internationalization of ASDA in Australia,
Process theory :
This is the theory which shows the scientific observation of how the business measure the
events in the specific process for leading up-to an outcome. For expanding the business

internationally in this theory suggests that the business tend to invest and expand in countries
with a short psychic distance to the home country. This, means that psychological difference
between the countries needs to be low (Jang and et.al., 2021).
Network Theory :
The network theory explains that the internationalization of the organization is the
proposed by the company when it is able to establish and develop the position of the firm in
relation to its counter parts in international markets. As the business of ASDA is already growing
effectively expanding in Australia which is very similarly a successful country be a very
effective decision by the organization.
International Entrepreneurship theory :
This is the theory which is considered to be the combination of the innovation and
proactive and risk seeking behaviour which is considered to be crossing of national borders for
intending to create value in organization. This is considered to be the key factor which influences
the organization.
Eclectic Paradigm theory :
This is the theory which is considered to be the ownership of the three tiered evaluation
framework explains different stages of globalization for growth of this business. (Idowu, 2021).
Through this method the three tiered evaluation of the framework is that of the company which
allows the business to determine the benefits of the foreign direct investment.
The application of this theory in globalization which allows the business to effectively
expand the business with effective practices for ASDA. As the organization will enter the
country it will be able to analyse the impacts of the growth practices which are related to the
operations of the organization. It is going to be very important for the business to consider the
following factors so that a detail examination can be made for the business and its growth.
Model of entry, challenged it may find in the ASDA and possible solutions.
Market entry modes or strategies-
Joint venture-
It is one of the most recommended and highly utilize market entry modes in the world
(Haj Youssef and Teng, 2021). ASDA may consider this mode to enter into Australia, in term of
sharing their share ownership with a specific well-known supermarket in the chosen nation.
Licensing-

According to this approach of internationalization, firm may take initiative to deal a
contractual contract whereby one firm as a licensor makes asset accessible to another
organization as licensee in exchange for licenses expenses, royalties and other types of
compensations.
Acquisition-
This model of entry or strategy may drive the attention of supermarket toward acquiring
the venture of other supermarket in the Australia, which may establish wide customer base and
have skilled workforce.
Challenges-
Decreased traffic tax-
This challenge put negative impact on organization success related to brand expansion in
Australia. It may lead to increase work pressure on management to take decision to develop
tactic to overcome the negative impact on current trade barrier.
Fall of protectionism-
Tariffs, quotas, standardization and subsidies are included in term of protectionism. Any
form of changes or falls, regarding these terms put negative impact on market expansion tactic of
ASDA.
Solutions-
The best way to prevent business from both types of challenges that ASDA may adopt is
to follow rules and policies related to international expansion. They may develop key plan to
deal with certain changes further related to falls of protectionism.
Leadership qualities that supports market entry
Strategic thinking-
It is the best quality that a leader may have and used to support market entry in term of
implementing new ideas such as expansion by using creative and innovative ideas.
Problem solving-
Another quality that leadership term encompasses is current one, according to that leaders
may support in the context of market entry strategy success by solving the key issues of
employees.
Motivator-

Leadership encompasses different types of quality, such as motivation, it may enable
leaders to motivate employees and give them reason to contribute to make firm sustainable and
productive in term of entering into new market.
Conclusion
From above study, it has been concluded that domestic market analysis enabled
organization to consider different types of factors and developed strategies that prevent firm
from negative impact of some forces. Furthermore, by summing up above discussion, it has been
summarized that by choosing specific mode of entry, company has entered into sustainable and
productive market, where it has gained key competitive advantages in bulk. It has been
determined that the utilization of effective leadership qualities enabled leaders to build wide and
strong workforce that also helped to enter in international market.
INDIVIDUAL REFLECTIVE ESSAY
Reflective statement
I had developed my understanding related to different concepts such as internalization,
domestic market analysis, market entry modes, etc. from this module that in return provide a lot
of benefits to me. By referring to Gibbs reflective cycle, I want to describe my personal
experience regarding learning in the context of several learning materials, including above terms.
I have learned the key information about internalization and overall process that play vital role in
success of an MNC, whether it is small or large, public or private. Another term regarding which
I have developed my understanding is global business that efforts to sustain in the new as well as
existing market for longer time, in order to increase profitability and productivity. During the
procedure of learning and understanding, I have collected information about factors that put
direct impact on market entry tactic of any brand or venture. From this module, I have learned
how and what types of forces accessible in the domestic market where a company enter or plan
to do so. For purpose of determining each factor, specific model utilization is necessary such as
PESTLE, which provide key information about extent to which a factor impacts business plans
negatively or positively.
I have also learned how an organization internalize itself in term of selecting and using
specific tactic, which is essential and beneficial for it to select by considering their constraints
and advantages. Along with above concept, I also developed my comprehending regarding
model of market entry, challenges and key solutions that a company can consider, to grow

rapidly and in productive manner. It is fact that while taking initiative to enter into new market or
nation, organizations faced several types of challenges or deal with multiple trade barriers that
put negative impact on their ventures in term of current planning, strategy formulation and other
activities. I understand the importance of leadership qualities because it enabled a leader to
support to make their market entry strategy successful.
While developing my comprehending about all learning materials that this module
encompasses, I felt quite nervous and stressed, but after moving ahead I feel confident and better.
As my overall learning regarding each material enable me to get better outcomes in the future.
In the world, there are multiple forms of approaches, methods and techniques as well as
strategic tools accessible that has been utilized for purpose of assessing or reviewing
entrepreneurial qualities. It can be said that GET2 in the recent time the most effective self
assessment tool, because it provides individual person chance to review own effectiveness or
capabilities in term of entrepreneurial qualities or features that make a person successful
entrepreneur.
I had utilized GET2 Enterprise ration model and conduct a specific test which enable me
to review my own entrepreneurial qualities and provide outcomes in clear & prescribe manner.
Illustration 1: GET 2
(Source: GET2 Test Enterprise Rating, 2022)

This model encompasses different types of questions and each question is related to my ability,
behaviour and other things.
After conducting test via GET2 tool, I had collected final results in term of scoring,
which allow me to review my effectiveness or efficiency appropriately. According to the test, I
need to develop different areas such as achievement, creative tendency, risk taking and locus of
control. All these terms falls under the category of key qualities that an entrepreneur must have
and used to achieve strategic aims, whether it is short, medium or long. It is quite essential for
me to develop each area in appropriate manner, because it will affect my performance and
productivity in negative manner that is not essential for better career growth, especially in case of
employment. By using chosen model and conducting test I had conducted review about my
abilities and effectiveness, which play vital role in my success and progress in the job market,
where I will grab specific role or job opportunity and get chance to work in a company, where I
will develop more understanding about varied useful things.
CONCLUSION
On the basis of above discussion, it has been identified that market expansion strategy
has enabled company such as MNC to take pleasure of increasing profitability, performance and
productivity level. It made company capable to build strong and wide customer base, more than
last few years or months that is quite essential and beneficial for its further success in the retail
industry.

REFERENCES
Book and Journals
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Capobianco, N., and et.al., 2021. Toward a Sustainable Decommissioning of Offshore Platforms
in the Oil and Gas Industry: A PESTLE Analysis. Sustainability. 13(11). p.6266.
Casañ, M. J., Alier, M. and Llorens, A., 2021. A Collaborative Learning Activity to Analyze the
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Cook, M., Duan, S. and Krivokapic-Skoko, B., 2021. SMEs Internationalization Through
Electronic Commerce: Benefits, Disadvantages, and Barriers. In Rural
Entrepreneurship and Innovation in the Digital Era (pp. 80-102). .
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Mitigation of Global Crises (pp. 154-180).
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