International Business Report: Apple's Market Strategies & Trade

This report provides an in-depth analysis of Apple's international business operations. It begins by examining the import and export data of the United Kingdom and then delves into the mechanisms regulating international trade, including the WTO, trade blocs, embargoes, tariffs, and quotas, assessing their impact on businesses like Apple. The report further explores how cultural and environmental factors of other countries affect international business operations, comparing cultural differences and evaluating their impact on multinational corporations. It also describes how the monetary environment influences businesses operating internationally and identifies the reasons why businesses choose to operate internationally. The report concludes by explaining the business strategies used by companies like Apple in the international market, providing a comprehensive overview of the challenges and opportunities associated with global business expansion. The report also covers the methods used to promote and restrict trade, and evaluates the potential problems faced by businesses when entering new markets.

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
M1 Asses the methods to promote/ or restricts trade between countries...............7
D1 evaluate the potential problems faced by businesses that trade internationally
when entering a new market .................................................................................. 7
TASK 2........................................................................................................................ 8
P3- Describe how the environment and culture of another country affects a
business operating internationally...................................................................8
M2. Compare how cultural differences and foreign business environments affect
multi-national corporations..................................................................................... 9
D2. Evaluate the impact of cultural differences on international business
performance in the international market..............................................................10
TASK 3...................................................................................................................... 10
P4– Describe how the monetary environment affects businesses that operate
internationally ...................................................................................................... 10
P5- Identify why businesses operate internationally ............................................11
P6- Explain the business strategies used by a business operating internationally 13
CONCLUSION............................................................................................................ 15
REFRENCES .............................................................................................................. 16

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:-
 Trade Blocs promote free trade with neighbors and countries in close proximity.
 Allows nations to be in partnerships when it comes to trade.
 Trade Blocs may discourage trade between nations outside of trade bloc.
 Lose of sovereignty.
Apple – Trade Bloc encourages free movement of workers (Potential Apple Employees)
Easy trade between Apple (Business activities country) and other countries within a trade Bloc.
EG. Easy trade between Apple (California) and Mexico.
Elimination of transaction costs (Lower or Non Tariffs)
Apple – When apple operates in a country that is a part of trade bloc. Problems may occur if
country comes out
(Example: BREXIT)
Embargo:
Embargo Act 1807 refers to the law that was passed by United State of Congress by
Thomas Jefferson in December 22, 1807. This law is about violation of U.S. where cargo were
condemned by European navies as well as there was ban on American ships for commercialism
in foreign ports. Embargo is a ban on trade on a particular country. An embargo can be placed on
a country because of many reasons (Tensions, anti social national behavior, breaking agreements
and rules). An embargo on a nation can mean multiple countries refuse to trade with a particular
country (American embargo on Iran)
Apple – Trade embargo’s can mean that Apple may be unable to source out rare materials
from a nation with an embargo set onto it. (EG. American embargo on China can mean Apple
struggles to buy cheap Chinese material for tech products). Challenge for Apple to trade from
these countries under embargo to other nations.
Tariffs:
Tariffs refers to the tax that one country imposes on import of goods and services from
other country. In tariffs, government compel to increase revenue , defend domestic industries and
apply political power in respect of another country. In addition to this it also has a great impact
on consumer prices. Tax paid on particular imports and exports. When there is no agreement

between nations (EG trade Bloc or Trade agreement) Nations pay tariffs (High amounts) when it
comes to importing and exporting from nation to nation.
Apple – Conducting business in a nation that pays tariffs and is not in a trade bloc or
trade agreement means losing more money when importing material for products. Tariffs also
need to be paid when Apple exports their products to another nation. Apple – High tariffs on
products from countries outside of a trade bloc or agreement creates more jobs for people within
a nation. This boosts the economy of the nation which Apple is operate in. This can mean people
within a nation have more money to spend on expensive Apple products.
Quota:
A quota is a government based trade restriction which limits the amount of production of
a certain product. A quota can also be put in place to limit imports and boost domestic
production.
Quota's can boost a nations economy by ensuring that domestic industries within the
nation have a chance two thrive.Certain materials and products may only be accessible through
importing. A quota can limit the amount of that material coming in, especially for a big company
like Apple. This can lead to not enough material for Apple production.
Subsidy:
A sum of money granted by the state or a public body to help an industry or business
keep the price of a commodity or service low. A subsidy ensures that the economy within a
country stays powerful. It ensures businesses within a nation have work. It keeps people in
employment. It ensures that another nation does not take advantage and price their products to
high.
When a government gives businesses subsidies, it does not guarantee same amount of
production of another nation. (EG. China)
Apple – need a vast amount of production of certain materials and products. If subsidies are not
effective, Apple will have a shortage.
Apple – Apple make more profit on their product if the amount of subsidy given to businesses is
so high that it means low product and material prices.
By adopting or concerning both the mechanisms Apple Company able to operate its
business in international market in effective manner that helps them in attaining their goal and

target in successful manner (Shenkar, Luo and Chi, 2014). It will also help them in operating
business in international market in appropriate manner.
M1 Asses the methods to promote/ or restricts trade between countries
For every organization it is necessary to expand its business at international level in order
to succeed in potential marketplace. There are several methods which help them in promoting
their trade among countries, some major of them are given below:-
 Tariffs, subsidies and taxes are all methods of trade restrictions. These are used by
countries to restrict trade with certain counties. For example between the USA and
Mexico
 Countries may use a quota to set a physical limit on the quantity of a good that can be
imported into a country.
 Some countries may have an embargo put on their trade. This is a form of trade sanction
that could involve a tariff or quota being put on a country
 To promote trade between countries, a group of countries may form a trade bloc or trade
agreement. For example the European Union is a trade bloc between 28 European
countries
 An example of a trade agreement is the North American Free Trade Agreement
Method to promote trade between countries
Exporting is a method of promoting and increasing trade between contraries. Export is a
function which refers to transporting goods or products from one place to another. In this
methods goods produces by company in one place can be transfer to other places. Apple can use
this method for promoting trade between countries and target large market area. Apple company
can implement export method by manufacturing their product in one place and then shipping
products to other countries. Advantages:By this method of promoting trade between countries company can expand
its market outside its own geographical area. Exporting method is very profitable for
company as it will leads to increase in sales of Apple company products. Company can
target new market segment and supply its products to different market segments. This
method is very helpful in increasing market share of company and gaining competitive
advantage over its rival companies.

 Disadvantages: Exporting of company product from one place to another can have
certain disadvantage for company. This method sometime require more money than
exacted to export Apple product between countries. Huge cost involve in exporting
company products will have impact on overall profitability of company. To export
product company needs to identify needs and requirement of customers in that particular
market and company also have to modify products as per customers requirements.
D1 evaluate the potential problems faced by businesses that trade internationally when entering a
new market
Entering into a new market can cause a lot of problems for a business so it is essential
that a large amount of market research is done. When McDonald’s tried to expand into India they
didn’t do enough market research and didn’t know that in India people don’t eat Beef because of
their cultural beliefs. A large amount of McDonald’s food is Beef especially in their burgers.
This was a huge fail for McDonald’s because more market research was needed.
There are also technological issues. Because so many companies are using technology if
they expand into a company that isn't very technically advanced or wont have the resources to
support technology then it will be difficult for them to expand.
Problems faced by apple company in exporting its products into new market area are mention
below:
 It is very cost consuming and require huge amount of money to export Apple products
from one place to another. In this method there is more financial risk as well as it is very
time consuming as compare to domestic sales.
 Exporting of goods and products require proper licensing and documentation. In some
countries there is strict rules and regulation set by government which leads to problem in
exporting Apple products.
Along with this there are also several problems which a company face when they enter
into new market such as communication issues which develop issue in interacting with potential
customers. Moreover culture of a particular place also impact on company when they expand on
particular market such as if Apple launch their luxury product at low economy market they may
face decline situation. So it is necessary for all company to conduct market analysis in order
operate in market in effective manner.

TASK 2
P3- Describe how the environment and culture of another country affects a business operating
internationally
It is necessary for a company to evaluate environment as well as culture of country when
they are planning to operate in particular country. This is so because through it they able to
understand their culture and requirement of market that will help company in developing
strategies as well as plans for conducting business effectively. Along with this it will also help
them in designing products and services according to customer’s requirement as well as demand
(Beamish, 2013). For this company may adopt various method, approaches or techniques here
Apple conduct market evaluation through PESTEL Analysis, which explanation is given below:-
Political- These factors will be weighed and analysed to help the government make a decision
that can be beneficial for their economy over time a long period of time. This means bringing
new ideas into the mix depending how they relate to the end goal and this can affect the
organizations meaning it can change their revenue schemes.
Economic- Inflation and exchange rate can have a positive and/or negative affect when it comes
to the economy due to the fact that it would affect the businesses in different ways. Economic
factors include inflation rate, interest rates and exchange rates.
Social- The social factors that can be beneficial for the social market is that companies and
businesses can investigate certain areas like cultural trends and population analytic (Meyer and
Peng, 2016). An example of is where business buy cultural things that may trend depending on
the time of year where the demand for the product would be extremely high during the holiday
seasons.
Technological- Technology can be a problem for the businesses that are trying to remain modern
because as the years goes by, there are more businesses that are operating online or using more
technological help. The factor is what the business will conduct thorough market research and
development on how this method can help them grow. This will also identify the amount of
technology the market has processed.
Legal- Legal factors can be from the two sources internal and external, but with legal factors
comes laws that may be problematic with the businesses environment in a specific country

depending the respected countries policies. It would also be problematic for them because they
would not know the laws and regulation that they would have to follow. The laws they might
have to follow are: Health and safety laws, consumer laws and labor laws there more that will
come into context depending on the business and country.
Environmental- Environmental factors are a crucial part of the industry because it holds the
most amount of coverage that can happen within the country based in such as tourism. The
factors include looking at the weather, growth, location and more.
Lifestyle culture- Modern lifestyle of consumers as well as transformation in educational level
have impact on purchasing on Apple products. This create an urge of purchasing expensive
products and many people has made Apple as a status symbol. Modern lifestyle increase the
demand of Apple products to meet with life expectancy of customers.
Digital media culture- Dependency of people on digital media is continuously increasing day
by day. This create an opportunities for Apple to increase in sales of its products. Apple's
products feature can help customers to use digital media in more creative way.
M2. Compare how cultural differences and foreign business environments affect multi-national
corporations
There are different culture in all over the world and business dealing in different nations
have to follow culture of that country. Multinational company like Apple have to look for
different cultural and their values to serve their product is that particular area. Difference in life
style of customers in different area can leads to different promotion strategies as well as different
product. Demand and supple of Apple product will be more where customer have high and
luxury life style as compare to countries where majorly of population is expanding to fulfill their
basic needs. Countries where customers have high education level to use high technology and
technical gadget, then there is high scope for Apple products. Modern countries with high
technology will have more demand of Apple products as compare to less develop countries
where customers are using no or limited technical products.
Cultural differences and foreign business environment impact of operational and
functions of an organization when they expand at international level. According to this it is
necessary for a company to conduct market analysis so that they can develop products and

services in effective manner according to local customer's requirements and need. Along with
this management of a firm also conduct analysis of respective place business environment so that
they can conduct selling as well s promotional activities according to their market. Such as when
Apple expand their market in any place they conduct analysis so that they can know about
particular place culture as well as business environment which help in designing and developing
strategies and promotional activities in effective manner. Through this they effectively able to
attract customers and encourage them to buy products.
D2. Evaluate the impact of cultural differences on international business performance in the
international market.
There is huge impact of cultural different on business and performance of business. When
company is dealing in international market company needs to take various business decision by
considering cultural and society factor of different countries. Apple company is responsible for
keeping social values and sentiments of society while making any decision. Company can set
different prices according to different countries. Life style of society will help in identifying
average budget of customers for expanding on product and services offered by Apple company.
Company also have to modify its products according to need and demands of customers of
different country. Apple can add additional feature in their products where customers are using
high technology features.
It is necessary for a company do conduct proper analysis of culture of particular country
because through it they able to develop strategies and plans in effective manner. There are
various factors which directly as well as indirectly impact on business of and if an organization
not adopt it they may face decline situation. Such as communication factor it is necessary to
company to conduct analysis and develop promotion activities accordingly so that they can
effective able to contact to customer in order to convince them to purchase products. Along with
this working culture also vary from country to country so it is also necessary for company to
develop workplace culture accordingly in order to satisfy their employees properly. Such as
Apple develop their advertising according to place which help them in developing attracting
customers by convening message in effective manner.

TASK 3
P4– Describe how the monetary environment affects businesses that operate internationally
Monetary environment refers to policies and rules which are established by government
so that company follow it and operate its business in effective manner (Zander, McDougall and
Rose, 2015). It is essential for a firm to adopt these monetary environments or polices when they
are conducting business at international level. This is so because by it company operates its
business operations in legal and effective manner that leads to attainment of goal successfully.
Some of the major monetary environment that affects business is given below:-
Foreign exchange systems:
This is the procedure used when people or companies from outside the domain country would
bring their currency in and exchange it to the domain currency for an example UK and the Us
have different currency by one operating in Dollars and one operating in pounds this is where
dollars would be converted into pounds to adjust to the environment.
This is great way for countries to be aware of the exchange rates when entering nations such as
the US, UK and European regions realising the conversion rate for business that will want to
operate in another country as well any spending in the respected country (Hamilton and Webster,
2018). So, if I wanted to convert 1 pound into US dollars then the exchange rate for 1 pound
would be equivalent
Legal support:
Legal support is where the company will deal with legal issues that may occur when starting up
the business this normally is issued by the authorities. This is normally associated with trading
between nations or other companies if stated. This is associated with global success of exchange
between currencies this will prevent exchange limitations between nations.
Trade associations:
This is a group of people that are created for businesses that are normally located in a specific
region of the service industry that helps with the support between different nations. If people