International Business and Globalisation

INTERNATIONAL BUSINESS AND
GLOBALISATION

Table of Contents
INTRODUCTION.....................................................................................................................................3
LO 1............................................................................................................................................................3
Examining the importance and impact of global trade and globalization................................................3
LO 4............................................................................................................................................................4
Porters 5 force model...............................................................................................................................4
PESTEL analyzes....................................................................................................................................5
LO 5............................................................................................................................................................7
Methods of internationalism, Ansoff matrix, Porter’s generic tactics and internationalism divers..........7
LO 6..........................................................................................................................................................10
Overall findings, tactics, practical problems and solutions....................................................................10
CONCLUSION........................................................................................................................................11
REFERENCES........................................................................................................................................12

INTRODUCTION
The present report is based under topic international business and globalization. The
chosen form of the report is Wilko limited. The report will discuss about the importance and
impact of global trade and globalization in general. it will also evaluate about the international
market in two different countries by using pestle and Porter 5 force model that are applicable to
international market. further the report will all to get the information that is related to how they're
making business international by using different times of entry strategies which will include
Ansoff metrics and Porter’s generic strategies along with this it will also discuss
internationalization drivers. Lastly it will also discuss about what were the findings any strategies
that are suited them along with the practical issues and solutions for the examples that are related
to currency issues.
LO 1
Examining the importance and impact of global trade and globalization
The phenomenon of the globalization says that it is both national and regional world
economies data integrated in global economy along with extraordinary pace which is extending
on the other hand it also has the great impact upon economic environment (Dixit & Gupta,
2019). The government of the different countries around the world has form different types of
trade data related to liberalize trade and financial markets data leading to international flows of
goods which also include capital and services. In addition to this they also have worldwide trend
that is related to privatization and deregulation of the economic activities which has been opened
in the wider area for the investment. therefore, there is large number of rapid development on the
information which includes communication technologies have resulted in putting the world
regarding finance, trade and services that is in the fast pace of the real time that is also across
different time zones of the world. Globalization of trade also gives different benefits to the
companies that are related to faster growth, higher living standards and different types of
economic opportunities.
In recent time, globalization is considered as one of those key elements that play vital
role in unexpected growth and success of many companies (Adebayo and Kirikkaleli, 2021). It

may put positive impact on overall business world in term of driving attention of each
entrepreneurs towards conducting expansion practice, which is quite beneficial for them as well
as other stakeholders that are connected with it. On the other hand, it may put negative impact as
well in term of increasing competition level, which put a lot of pressure on those small size
venture that are unable to invest a lot of money to run and beat rivals.
Global trade is another component that impact on varied manners such as negative and
positive. For example, it may contribute to increase profitability and productivity of brands even
better than last few years (Jun, Mahmood and Zakaria, 2020). It offers opportunities to enlarge a
company and maximize customer base, which is not so easy to build. While it may bring varied
challenges for an organization in term of trade barriers. It can be said that excessive dependence
on exports and imports may lead to cyclical changes in advanced nations.
LO 4
Porters 5 force model
It is one of those strategic and useful models that may help management to determine and
analyze industry factors or forces that may put effect on their planning, strategic implementation
and other activities, whether it is negative or positive. The company can expand their business in
USA and Europe for that the five forces of Porter. Each force discusses below in the context of
Wilko Ltd.
• Thread of new entrance
As both the countries are known as the profitable market that is by giving high returns it
has resulted in a tractor new farms like Wilko Ltd (Reuber & et.al., 2018). There is barrier to
entry because of patents and right and the most attractive segment is related to one in which the
entry barriers are very high and exit barriers are very low. as the company have to face different
types of issues that are related to government policy, capital requirement and other. From this
analysis, it can be identified that extent of this force is high, which may put negative impact on
chosen company in term of creating challenges for it in term of entering into two select nations
such as Europe and USA.
• Thread of substitute products