Global Business: Pros and Cons of EEC, Reasons and Challenges of MNCs Internationalization, and Gymshark Case Study

Global Business

Table of Contents
INTRODUCTION...........................................................................................................................1
INDIVIDUAL NOTES 1.................................................................................................................1
What are the pros and cons of the EEC.......................................................................................1
INDIVIDUAL NOTES 2 ...............................................................................................................2
Critically discuss the reasons why MNCs internationalise and the typical challenges they
encounter. ...................................................................................................................................2
INDIVIDUAL REPORT.................................................................................................................6
Introduction.................................................................................................................................6
Analysis of domestic market.......................................................................................................7
Strategy to internationalise..........................................................................................................7
Mode of entry challenges it may find in the country and possible solutions..............................8
Leadership qualities that supports the market entry....................................................................9
Conclusion...................................................................................................................................9
INDIVIDUAL REFLECTIVE ESSAY.........................................................................................10
CONCLUSION..............................................................................................................................13
References:.....................................................................................................................................15

INTRODUCTION
Global Business is also known as international business which is defined as the
production and sales of goods and services among different countries. In simple words, global
business refers to the company or organisation which perform business operations in several
countries around the world. Global business is related to the high level of competition among the
businesses. Major advantage of expansion of a business organisation is on the far side of borders
comes down to numbers. Performing business operations globally means accessing more
customers which helps in generating higher revenue and profit (Ronit, K., 2018). This report
include the advantages and disadvantages of European Economic Community, reasons of
internationalization of MNCs along with the challenges they encounter. A detailed analyses of
Gymshark is also included in this report which covers the analysis of domestic market, strategies
to internationalise, mode of entry with challenges, several leadership qualities which will support
the organisation in entering in a market. In addition to this, it also deals with an individual
reflective essay which state the learning from the module.
INDIVIDUAL NOTES 1
What are the pros and cons of the EEC
The European Community was consider as an economic association which have been
developed by six European members nations in 1957. There are three economic associations are
involved in The European Community which include The European Economic Community
(EEC), The European Coal and Steel Community (ECSC) and The European Atomic Energy
Community. EEC is also known as common market which was discovered by Treaty Rome in
1957 in order to reduce the stress which leads to war (Williams, S., 2018). The members of
community also focuses on the development of such strategies which can remove the trade
barriers. Below mentioned are the advantages and disadvantages of EEC:
Advantages
 Freedom of movement: The citizens of all state members have freedom of moving
from one member country to another. Citizens are free to study, work and travel in
any state of EU.
 Better jobs and workers protection: All the citizens of state members have
opportunity to work in any local area of any country of EU which state higher
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availability of opportunities of jobs for them. Due to the less operating cost in EU
countries, international manufacturer are moving their businesses. EEC is also
playing an important role in developing the working time directive which also
provide protection to the rights of employed workers in the EU members countries.
Disadvantages
 High cost of membership: It has been found that becoming a part of European
Economic Community is an expensive process. Cost per head lies between £300 to
£873 which also explain the reasons of spending of UK government reaches at a net
worth of £6.883 billion which do not include the cost of regulation (Advantages and
disadvantages of EEC, 2022).
 Problems with the policies: Several of disagreements may arise while operating in
different markets as a single market. EEC state that the common policies are being
adopted by the businesses while performing business operations which result in
several issues. It has been also found that the rules and regulations which were
developed for the purpose of protecting the small member countries also effect the
large countries as well. European Community always look for the interest of entire EU
not for the interest of any single or individual country (Baur, Rydelski and Zatschler
2018).
INDIVIDUAL NOTES 2
Critically discuss the reasons why MNCs internationalise and the typical challenges they
encounter.
Reasons of internationalization
A multinational company is defined as an enterprise which perform their business
operations in more than one country. Some of examples of MNCs include Marks and Spenser,
Tesco, Hilton and many more. Internationalization or internation business expansion is defined
as the procedure of expanding a business from domestic market into international market around
the world (Panibratov and Klishevich 2020). Several of reasons have been identified for the
expansions of business organisation in international market. Below mentioned are the some
reasons of internationalization of MNCs:
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