International Business and Globalisation

International Business and
Globalisation

Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
Appraise the importance and impact of global trade and globalisation.......................................1
LO4..................................................................................................................................................2
Relating to your company contrast at least two relevant markets in two countries – compare
them going into detail using PESTLE and Porters Five forces and apply them to the market
(the countries you want to expand to)..........................................................................................2
LO5..................................................................................................................................................6
Internationalisation – how are they making businesses international what entry strategies are
they applying...............................................................................................................................6
LO6..................................................................................................................................................9
Based on LO4 & LO5 – what are the findings, what strategies suit, what are the practical
issues and solutions......................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
International business is considered as the trade of products, services, technology, capital
and understanding across national border as well as at international or transactional scale. This
incorporates cross border transactions of products or services among two or more countries. It is
also undertaken as the globalisation. Moreover, globalisation is shift towards a much integrated
world economy where culture, thoughts and beliefs are exchanged additionally to products,
resource and services (Begum, 2020). As per the scenario, the undertaken company for this
report is Trading Scents Ltd., which is a growing suppliers and wholesale manufacturer of
cosmetics and perfumes. It is registered in year 2011 within United Kingdom. It deals with
perfumes, cosmetics and many others. The topics which are going to be discussed in this report
are effectiveness and impact of global trade and globalisation. Moreover, PESTEL analysis,
Porter’s five forces analysis, entry strategies, Ansoff matrix and Porter generic strategies are
described. Apart from this, internationalism drivers and current issues are also discussed in this
report.
LO1
Appraise the importance and impact of global trade and globalisation
Globalisation is regarded as the procedures through which the world is becoming
enhancing interconnected as an outcome of massively enhanced trade as well as cultural
exchange. Globalisation has enhanced the production of product and services. Moreover, this is
also undertaken as the market integration within international economy, leading towards
enhanced interconnectedness of national economies (Burgmann, 2020). As Trading scents Ltd.
planning to expand their business internationally so it has various effectiveness as well as
impacts. Some of them are discussed below:
Importance of globalisation
The globalisation to have numerous importance to global business and national economies.
Some of them are described underneath:
 Globalisation allows worldwide access for sourcing of cheap raw material as well as it
enables entity to become cost competitive into its own market place as well as into overseas
market area. Also, seeking out less cost material from across the world is known as
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international sourcing. Also, due to reduction into cost and revenue maximisation,
globalisation may produce enhanced profitability for shareholders.
 Globalisation has led to enhanced inward investment flows among nations that have
developed advantages for recipient countries. These benefits incorporate the knowledge as
well as technology sharing among nations.
 This is also helpful in access to huge marketplace means that entity can able to experience
higher demands for its goods and advantages from economies of scale, that drives towards
minimisation into average cost of manufacturing.
 It also facilitates a kind of incentives for nations to expertise as well as advantage from the
application of comparative advantage principle.
Impact of globalisation:
Globalisations also have impacts upon countries and business as well (Cherunilam, 2020).
Some of them are as follows:
 Prices: Enhanced competition is likely to minimise the level of price for traded
manufacturers. Due to United Kingdom entities may source from around the world cost can
be minimised as well as it may be passed upon in context of minimised domestic as well as
export costs.
 Trade: The volume of exports as well as imports both is likely to enhance, with trade
representing an enhancing proportion of GDP. The impact upon balance of payment is
uncertain as well as also based upon relative development rates, inflation, competitiveness
and rate of exchange.
Therefore, Trading scents Ltd. have to consider all the above mentioned impacts and
effectiveness before planning to expand their business internationally. As, this helps them to
understand the benefits of having business into other nation or country.
LO4
Relating to your company contrast at least two relevant markets in two countries – compare them
going into detail using PESTLE and Porters Five forces and apply them to the market (the
countries you want to expand to)
The international business is undertaking essential places within world as well as various
aspects are associated to global business (Cuadro and Ordóñez, 2020). Although analysis of
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