International Business Environment & Trade

International Business
Environment & Trade

Contents
INTRODUCTION.....................................................................................................................................3
MAIN BODY.............................................................................................................................................3
REFERENCES..........................................................................................................................................8

INTRODUCTION
International Business Environment includes various risks, differences in culture,
exchange risks, issues relating to legal and taxation etc. It is also impacted by various other
factors such as economic conditions, culture and so on (Barbier and et. al., 2019). There are
many advantages of international business environment and trade such as they help in expanding
and growing a particular business. The organizations also get a chance to explore new market
and increase their customer base. Organization that is chosen for this report exports automotive
parts to India as many UK automotive companies have their operations in the nation. UK has
many trade laws that protect the customers who may purchase faulty products from a particular
position. The report talks about the practical working of the UK Trade Law.
MAIN BODY
The United Kingdom has been a one of the key players in the global import and export
business. In order to fulfil and satisfy the needs of citizens, the nation imports a lot of products
besides exporting a variety of goods to other countries around the world. The
organization/business that is chosen in this report exports automotive parts to India. This is
because a lot of UK automobile companies like Jaguar Land Rover, JCB, Ricardo etc. operate in
India. Also, respective sector ensures growth apart from having the full support from the
government. India is among the most promising markets for UK exporters because the market
size of the automobile industry is huge and thus there are various opportunities available to UK
companies. In the UK, the HMRC or Her Majesty’s Revenue and Customs lays out all the
necessary information for both importers as well as exporters in one single document that is
titled “UK Trade Tariff” (UK: Import & Export Regulations In The United Kingdom, 2020). It
talks about various rules and regulations such as VAT, Duties, Suspensions, Reliefs, Restrictions
etc.
Value Added Tax or VAT is applicable to all the goods that are either imported into or
exported out of the United Kingdom. This regulation is governed by Value Added Tax Act,
1994. As per the UK Trade Tariff, there are certain rules that are imposed on goods that are
exported from the nation (Aman and Greenhouse, 2017). The restrictions are primarily placed on
three categories namely- cultural goods, strategic goods, controlled drugs as well as precursor