International Business: Import, Export, and Regulatory Mechanisms

International
Business

Contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
P1- Explain import and export data for the United Kingdom..................................................................3
P2 Describe the mechanisms that regulate international trade.................................................................4
TASK 2.......................................................................................................................................................5
P3- Describe how the environment and culture of another country affects a business operating
internationally......................................................................................................................................5
TASK 3.......................................................................................................................................................6
P4– Describe how the monetary environment affects businesses that operate internationally.................6
P5- Identify why businesses operate internationally................................................................................8
P6- Explain the business strategies used by a business operating internationally..................................10
CONCLUSION.........................................................................................................................................11
REFRENCES............................................................................................................................................13

INTRODUCTION
International business refers to procedure which is based on various activities such as
trading of goods and services, technology, capital, knowledge and many more from one place to
another. It is generally done among two countries or nations. There are numbers of benefits of
international business such as increase in customer’s base, trading of knowledge or capital,
expand business, enhance economy and many more (Dunning, 2013) Organization taken for this
assignment is Apple which is a public company and operating its business in software and
hardware industry. It is founded by Steve Jobs, Steve Wozniak and Ronald Wayne in year 1976.
Its headquarter is situated at Park Way, Cupertino, California, United State and it offer’s variety
of products as well as services at worldwide level. Products offer by respective company are
iPod, iPhone, Home Pod and so on as well as services are App store, apple arcade etc.. Topics
covered in this report are import and export data of United Kingdom, mechanisms which
regulate international trade and environment of other country which affects business operating
internationally. Along with this it will also include monetary environment that will affects
businesses which operate internationally and reasons why an organization operates
internationally. It will also explain about business strategies which can be used by a business
while operating international level.
TASK 1
P1- Explain import and export data for the United Kingdom
 Import is when products and services are brought into the country from another part of the
world, for example the Uk importing BMW’s from Germany.
 Exporting is when products or services are taken outside the UK to another country in the
world.
 Because the UK is in the European Union, all trade deals are done through the EU.
However, when the UK leaves the European Union on March 29th the UK will have to
negotiate it’s own trade deals with countries (Shenkar, Luo and Chi, 2014).
 This will cause major problems for trade with Europe as the EU exports Billions of pounds
each year to the U.K. If we have a no deal with the EU which is at the moment very likely

than not only will the EU lose out on billions of pounds but there will also be a shortage of
EU products in the United Kingdom.
P2 Describe the mechanisms that regulate international trade.
There are various mechanisms or government which regulates international trade so that
company conducts their work in legal as well as effective manner. Through this an organization
develops their strategies and conducts it in proper manner in order to attain their objective and
target (Killing, 2013). Some of the major mechanisms which help Apple company in regulating
their business operations and functions at international market are given below:-
WTO/World trade organization:
WTO is an organization which plays as the judge & Jury when it comes to international trade. It
generally develops rules and regulations for companies which is operating or planning to operate
its business in international market. Through this an organization able to operate or conduct its
business at international level in effective manner. There are some major features and benefits of
world trade organization are given below:-
 Ensuring nations don’t break trade rules. (USA vs. Brazil)
 Organization is made up of governments.
 Trade agreements can be made between nations (Through WTO supervision)
 WTO can encourage trade (Dispute settlements, free trade encouragement)
 WTO can also punish nations with sanctions if rules not followed. (Restricting trade in some
occasions)
Apple – WTO can promote free trade between nations by acting as an enforcer of trade
agreements. (Free trade = Good for Apple)
Apple – Penalties & Sanctions can affect Apple trade with nations.
Trade Blocs
Intergovernmental agreement within close proximity to one another regarding free trade. By
adopting this agreement company able to reduce trade barriers which they may face while
operating or conducting its business in some other country (Beamish, 2013). There are several
types of Trade Blocs such as EU, NAFTA, and MERCOSUR. Some major features of Trade
Blocs are given below:-