International Business Environment

International Business
Environment

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Business techniques used to analyse the international business environment.................1
1.2 Impact of globalisation and international trade on national economies...........................2
TASK 2............................................................................................................................................3
2.1 Micro and macro environment of Marks & Spencer.......................................................3
2.2 Benefits, opportunities and challenges of globalisation and international trade for Marks &
Spencer...................................................................................................................................5
TASK 3............................................................................................................................................7
3.1 Implications for businesses of the cultural and regulatory diversity in international markets
................................................................................................................................................7
3.2 Covered in PPT.................................................................................................................9
3.3 Potential conflicts between corporate strategy and ethical social and sustainable
responsibilities........................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
International business refers to trade of services, capital and technology across national
borders. It consists the cross- border transactions of products as well as services among two or
more then two countries. It encompasses all the commercial activities which taken place to
promote transfer of products, resources, ideas, technologies and people across the national
boundaries. The international business environment is multidimensional consisting political
factors, exchange risks, taxation problems and the cultural differences (Black, Morrison and
Gregersen, 2013). This report is based on the Volkswagen Group. It is German multinational
automotive manufacturing organisation. In this given report will be discuss about business
techniques which are mainly used to analyse international business environment. The
globalisation and international trade both impact on national economies. There will be discussed
that the globalisation provides advantages, opportunities and challenges to business when it
conducts at global level. Implications for the businesses of regulatory and cultural diversity in
international markets will be discuss here.
TASK 1
1.1 Business techniques used to analyse the international business environment
International business consists any of business activity that cross the national borders. It
is related to selling and purchasing the services and products across border. National border are
crossed through company to expand business activities for an instance mining, banking,
education, communication etc. The international business includes cross- border transactions of
products and services among the two or more than two different countries. Transaction of the
economic resources consists skills, people and capital for purpose of international production of
physical services for an instance construction, baking and insurance. In order to conduct the
business at international level, there is a need to multinational organisations to bridge the
separate national markets in global market place (Boshyk, 2016).
Under this, environmental analysis is strategic tools that is mainly used to determine all
internal and external components which impact on performance level of company. Analysis
entails evaluation of opportunities and threats factors which might present. There are many
different business analysis tools which companies use to analyse international business
environment. Most common analysis tool that can be used in analyse the internal environment is
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SWOT analysis. It is explained as set of the methods which mainly used to analyse international
business environment factors which impact on performance level of an organisation (Burke,
Trahant and Koonce, 2012). This tool is helpful in aware about the strange of company that help
in conduct business operations at international level, determining the weaknesses help in over
come from them and also make better decisions. It helps in identifying better opportunities that
help in provide the better opportunities in future for gaining competitive benefits. Threats aware
about the complexities which an organisation can face.
The other tool is PESTLE to analyse the internal business environment in an effective
way. It provides help in understand that the political, economical, environment and the social
problems are different from country to country. It provide the knowledge about dynamic one of
one market can impact on other.
1.2 Impact of globalisation and international trade on national economies
Globalisation is explained as free movement of investment and trade, assets and labour.
The main aim of globalisation is to provide advantages to an individual economies around world
through making the market more efficient, limiting conflicts, spreading wealth and enhancing
competition (Cavusgil and et. al., 2014). It can be useful be conceived as process that embodies
transformation in organisation of the transaction and social relations. Main aim of globalisation
is to give company competitive position with minimum operating costs, gain large number of
services and products.
The globalisation develops main change in economy of country. The globalisation gives
free movement of investment, assets, labour and trade. On the other hand, economic
development by Globalisation develops positive and negative impact on society (Kankaanranta
and Salminen, 2013). The main benefit of economic development is high income per capita and
also higher standard of living because to enhance output. It enhance in the output that has
developed better employment opportunities which rakes nation towards prosperity.
International trade is explained as an exchange of services, capital and products across
the international territories and borders. This kind of trade provides rise to world economy and
represents significant share of the Gross Domestic Product (GDP). International trade plays a
necessary role in an economy of country. It allows to satisfy requirements of population that
stimulated internal development of country. It is helpful in expand markets for products and
services at international level. It is one of that main factor of openness and made better
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