Contemporary Issues in International Business: A Case Study of Tesco

International business
1

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
TASK 1............................................................................................................................................3
Debate key contemporary issues relating to organisations involved in international
business.......................................................................................................................................3
TASK 2............................................................................................................................................5
Identify and evaluate the global context within which international business must
function in the twenty-first century.........................................................................................5
TASK 3............................................................................................................................................7
Appraise alternative methods of entry into foreign markets.................................................7
TASK 4............................................................................................................................................8
Explain why companies may decide to internationalise and alternative theories of
internationalisation....................................................................................................................8
TASK 5............................................................................................................................................9
Discuss the impact of multinationals on both the home and host nations............................9
TASK 6..........................................................................................................................................10
Select analyse and evaluate data on country markets..........................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
2

INTRODUCTION
Business is said to be an organisation or an enterprise that is involved in commercial,
professional or industrial activities. The business in which there is exchange or transfer of goods
and services is conduct between two parties of different nations is defined as international
business. Every industry wants to expand its business in international markets for increasing the
level of productivity as well as profitability. International business also enhances the
opportunities for the customer-base to gain benefits of their products or services. As a result,
every business expands its business activities outside from local environment to the worldwide to
gain competitive advantages. Within this present report, Tesco is taken into consideration to
gives right observation regarding implementation of international business in different parts. The
contemporary issues are going to discussed for facing the challenges that occur in organisation
internally. Along with it, the global context as well as other business functions will be identified
and evaluated as per 21st century. Mode of entrance into international markets are also going to
be considered. Furthermore, this report also includes popular theories of internationalism and
along with it impact and data will be analysed for providing recommendations to company.
MAIN BODY
TASK 1
Debate key contemporary issues relating to organisations involved in international business
Tesco is an organisation that is involved in international business and is the largest retailer in
the world dealing in grocery and general goods. It is a multinational company and is started in
the year 1919 in UK. Tesco faces many rules and regulations that are associated with
international business for accomplishing its business activities. There are various contemporary
issues that are faced by Tesco as well as other multinational organisations and some of these
issues are explained as under:
Trade protectionism:
It is a type of government strategy which is designed to protect country-specific areas of
industry form international influences. The key objective of Trade protectionism is to decelerate
the unfair competition among international organisations. Monopoly as well as another kind of
unfair policies of business are safeguarded by the Act of Trade protectionism. This act made
environment of business less competitive and also helps international trade. Tesco is required to
3

care about the Act of Trade protectionism imposed by international association. There are
different trade protectionism contemporary elements and some of them are imports quotas,
tariffs, policies and regulations of government.
 Imports quotas: This is imposed for decelerating the quantity of import and accelerating
market price of certain products.
 Tariffs: These are imposed on those products and services which are imported and tax
rate which is imposed as per tariffs act is distinct on the basis of use and types of goods.
The economy that has floating export tax rate can have levied export tariffs for
controlling the competition of international business. The tariffs on export are enduring
the local business concerns. Contrary to it, tariffs on import provides assistance to local
business administrations.
 Government policies and regulations: Government has levied some extra barrier and
regulations certain industry and businesses for reducing the quantity of import and
increasing product price of country. Some special acts which are imposed by government
are environment standard act, food safety acts, electricity security regulations, etc.
 Anti-dumping legislations: The meaning of this policy is selling products which are of
lower price in international market in comparison to local market sales prices. It means
that import will be inexpensive and influence local market that results in closure of the
business.
Ethical and social issues:
These issues are maintained by multinational organisations while doing international
business. The companies should take more responsibilities in respect to social welfare for
expansion of international business. Social responsibility is maintained on the basis of ethical
issue practices. Local tradition, environment protection and respecting human rights are
performed as well as honoured by multinational organisations. Features, types and
requirements of product should match the needs of customers. Tesco provides its products in
Asian country on the basis of their tradition and reforms by respecting the human rights.
Tesco makes sure health safety, securing as well as regular life well-being of not only
customers but also workers. Respective company provides appropriate benefits of their
workforce. Another ethical as well as social responsibility is protection of environment. The
policies regarding environment protection also develops public relation and it positively
4