International Business: Drivers, Trade Barriers, Ethical and Social Issues, Cultural Preferences

International Business
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Table of Content
INTRODUCTION.........................................................................................4
MAIN BODY
Business drivers behind company’s expansion into the given country..............................4
Trade barriers..................................................................................................6
Ethical and social issues.....................................................................................8
Cultural preferences..........................................................................................9
Expansion methods .......................................................................................10
CONCLUSION.............................................................................................11
REFERENCES..............................................................................................13
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Executive Summary
The overall report is about international business and their objective is to tap into Chinese market
for selling UHT milk which is specially for small aged children. . They want to expand their
market into result oriented manner so that they can increase their market share. The report
basically consist of the drivers of business behind the expansion of company into the given
country and also about the trade barriers. The report also consist of ethical and social issues
which needs to be considered by the UK SME. The report will cover discussion about the
cultural preferences which needs to be considered by the business and also about the expansion
methods to be chosen by the company.
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INTRODUCTION
International business basically refers to the trade of services, goods, capital, technology
and knowledge across national borders and also at transactional or global scale. It basically
involves cross border transaction of services and goods between two or more countries. In the
present report, UK SME is taken into consideration which is basically based in London. Their
key objective is to tap into the Chinese market for their “UHT milk for the children who are aged
between three to eleven years(Ferraro., 2021). This is the company who is focused towards
expanding themselves into particular audiences in the Chinese market. The present report will
cover discussion about the drivers of business behind the expansion of company into the given
country and also about the trade barriers. In addition to this, the report will cover analysis about
the ethical and social issues which needs to be considered by the UK SME. Moreover the report
will cover discussion about the cultural preferences which needs to be considered by the business
and also about the expansion methods to be chosen by the company.
MAIN BODY
Business drivers behind company’s expansion into the given country
There ae certain drivers of business which is behind the company’s expansion in the
Chinee market which is defined into the following manner:
 Limited home market: When the size of market at home level is limited then the
company can internationalise their operations. Company which is mature in its domestic
market then it is driven sell into more than one country because the sales volume which
has been achieved in its domestic market is not large enough to fully capture the
manufacturing of economies of scale. In context to UK SME, they can sell the UHT milk
in the Chinese market into positive manner.
 Excess of production: There are some domestic companies who expand their production
capacities more than the demand for the product into the domestic market(Buckley and
et.al ., 2018). In context to UK SME, it has been observed that in case of excess
production of milk they can sell out into the Chinese market into productive manner.
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