Global business

Global business

Table of Contents
Individual Notes 1............................................................................................................................1
Research on the European Economic Community (EEC) and explain what are the benefits and
drawbacks of the EEC.....................................................................................................................1
Individual Notes 2.............................................................................................2
Critically discuss why MNCs internationalise and the typical challenges they encounter..............2
INTRODUCTION............................................................................................5
Analysis of domestic industry.....................................................................................................5
Strategy of Internationalisation....................................................................................................6
Environmental analysis................................................................................................................6
Mode of entry and trade barriers.................................................................................................7
Leadership qualities.....................................................................................................................7
CONCLUSION................................................................................................................................8
INDIVIDUAL REFLECTIVE ESSAY...........................................................................................8
REFERENCES..............................................................................................................................11

Individual Notes 1
Research on the European Economic Community (EEC) and explain what are the benefits and
drawbacks of the EEC
The establishment of EEC wad done in 1957 when a treaty was signed by Italy,
Luxembourg, France, Belgium, West Germany and Netherlands and was also known as
Common Market. The European Economic Community involves three communities which are
European Coal and Steel Community (ECSC) and European Atomic Energy Community
(Euratom). In 1993, theses three communities were incorporated in EEC(Mahapatra,
Raveendran and De, 2019). The major aim of developing the EEC was to develop a common
market with the members and removing all the trade barriers and making single or common
external trade policy for conducting the trade regulations. This treaty also helped the farmers by
developing a common agriculture policy in 1962 to save framers form the imports of agriculture.
If in case of political objectives then the EEC aimed to reduce the tensions which were faced by
the people from the World War II and people were hoping that the coming of France and
Germany together will bring up their friendly relations with each other. Benefits and drawbacks
of EEC are explained below-
Benefits of European Economic Community-
 Creates more influential economic block- The nations which are within the country
does not have good influence if they have to represent to other countries globally. If more
nations will join then the influence will be greater globally. Big economies then can
create their influence on the imports, exports and to fix the prices of the goods.
 European union helped to improve the local environments- Formation of EU have
improved the country position drastically (Ting, Ahmad and Sophia, 2018). This is only
because of the rules and regulations which were imposed on Europe.
 Stops the aggression from other countries outside of Europe- As the country
was small in size which becomes important to develop a security profile for the country.
Developing and sharing resources with training of military will help the country form the
other big countries. Russia is larger country in size do it will take less time for the
country to swallow Europe.
Drawbacks of European Economic Community-
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 Easier to cross borders in Europe- Because of less restrictions and of Schengen Visa
has made the travel to Europe very simple and easy. Because of which the country has to
face most of terrorist attacks (Tabiu, Pangil and Othman, 2020). This is because
individuals can travel the country as well as the small territories without documentation
and with false Ids.
 Ties the hands of local governments on certain issues- Because of EEC the
government has to suffer a lot and have to make those decisions which will not help the
people living within the country but to the outsiders. The government has to make the
settlement for the refuges which have come to Germany and have to invest lot of money
because of such issues.
 Limit certain forms of border control- Limits in the border is still under the control as
people can come and go from the border without showing the documentation and other
things. Some countries are also not following the rules but at later times they have signed
for the border control.
Individual Notes 2
Critically discuss why MNCs internationalise and the typical challenges they encounter
Multinational Corporations are those companies which have started its business in the
home country but for the expansion they have developed their business in other countries as well.
There are many examples of small countries which have started their business as a small
business and now have expanded their business globally (Atulkar and Kesari, 2018). MNCs
usually have huge turnover and have high assets compared to the small companies which usually
involves small turnover with few assets. They are technology advanced as now the demand for
new technology and involvement of that technology in the business has expanded because of
which the companies have not only included the application of new technology in their
operations but also in those in which they are working. Not only this they invest their huge costs
on developing the marketing campaigns and doing the promotions for their company and the
brand. There are certain reasons explaining why the Multinational Corporations internationalise
their business which have been explained below-
 Increase revenue potential- Every company which setup their business aims to generate
more revenue and achieve success. When the companies uses the growth strategy in the
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