Business Environment Analysis Report: Enbridge Corporation

This report analyzes the business environment of Enbridge Inc., a Canadian multinational company involved in the generation, distribution, and transportation of energy, focusing on its role in international trade. The report identifies four key pillars of international trade: goods, services, suppliers, and customers, and discusses their significance. It then applies these concepts specifically to Enbridge, examining the company's trade in crude oil and natural gas, its pipeline infrastructure, and its expansion into other energy sectors. The analysis considers the impact of factors such as exchange rates, human capital, technology, and market demand on Enbridge's business operations and overall market power. The report concludes that the quality of services and products, along with external forces like customer and supplier relationships, are essential for an international company's success. The report highlights Enbridge's remarkable growth, which is attributed to the quality of its services and goods.

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Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Four pillars of international trade.............................................................................................2
Two important pillars for the business of Enbridge..................................................................3
Conclusion.......................................................................................................................................4
Reference list...................................................................................................................................5

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Introduction
The objective of this paper is to analyze the role of different parameters, including
suppliers, customers, goods and services for a multinational Canadian company. In trade finance,
all these parameters are considered as important business pillars of a company. Enbridge Inc. is
the considerate international company for this paper. This Canadian international company
operates through diversified business segments, involving generation, distribution and
transportation of energy. It is the largest supplier of liquid hydrocarbons and crude oil to the
North America. The company owns largest distribution network system natural gas both in
Canada and the USA. The continuous pace in the revenue growth reflects the company’s strong
potentiality in oil market. Total revenue has been recorded at approximately $6 billion in 2019.
Discussion
Four pillars of international trade
Goods: International trade permits the countries to participate in the commodity trading. The
country generally exchanges those products which have lower opportunity cost. The producers
should have comparative advantages producing those goods. This implies that traders will earn
optimum profit if they trade products to other country (Baier, Bergstrand & Feng, 2014). In this
regard, exchange rate is the key determinant to control the trade in the international market. For
example, devaluation of exchange rate slaps down the revenue of the domestic traders in the
international trade.
Services: Human capital and technology are the important parameters of service. Every
economy is either capital-intensive or labor intensive. The capital-intensive country export
technology, whereas, the labor-intensive country attains to export labor to other economies. On

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this account, it has been observed that the service quality gets enhanced due to the growing
competition in the international market (Low, 2016). As a result of the introduction to the
international trade, the economy receives spill-over effect of the service.
Suppliers: Suppliers control the supply of product and services through price system. They hike
the product price while they run out of liquid money. Then they deliberately attain to low the
price level so that the consumers can purchase more products. Nonetheless, producers also cut
down the selling price when inventory occurs in the market (Vernon, 2015). In this case,
supplied amount surpasses the market demand. On the contrary, selling price gets surged up
when demand is excess as compared to the supply.
Customers: Customers are the driving force of the market revenue. They like to increase the
consume volume market faces uncertainty. The inventory is then the top priority to the
customers. However, suppliers try to rise the price level facing the robust growth in the demand.
It further leads the economy to the inflation situation. Hence, the customers purchase less during
inflation. On the other hand, the sluggish economic growth diminished the per capita income of
the customers (Axsen, 2014). Therefore, the customer demand is likely to get declined during
stagflation.
Two important pillars for the business of Enbridge
Goods: In terms of the goods, the company trades crude oil and natural gas with other
economies. The company is comprised of several subsidiary companies. Each company
emphasize on the trade of a product (Arora & Cai, 2014). For example, Union Gas combined
with Enbridge Gas Distribution are specially focused on the utility products of gas. Apart from
that, the company also manufactures light oil products. The access to the light oil market is the

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emerging trend of the internal oil market. Therefore, the company is expected to have great
demand in terms of both the domestic and international market.
Services: Enbridge transfers liquid natural gas and crude oil of 2 million barrels (approximately)
per day between Canada and the USA through about thirty thousand miles. The company
processes and transfers natural gas through Alliance Pipeline and Vector Pipeline. These
pipelines are the principal pipeline infrastructure of British Colombia. This data states that
Enbridge owns immense capacity in the international oil market (Gomes, 2015). Over the last
decade, the company has proposed to extend its pipeline service in the photovoltaic energy
products. Henceforth, the acquisition of Spectre energy reflects the company’s extended trade
interest in the energy sector.
Conclusion
It can be concluded that quality of service and products are the essential parameters for
an international company to hold a resilient market power in the global economy. The company
should focus on its internal strength like technology and labor. Meanwhile, the external forces
like customers and sellers belong to overseas market are also the important influencing factors to
justify the market strength of a multinational company, like, Enbridge. This Canadian
Multinational oil company has achieved a remarkable growth due to quality service and goods.

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Reference list
Arora, V., & Cai, Y. (2014). US natural gas exports and their global impacts. Applied
energy, 120, 95-103.
Axsen, J. (2014). Citizen acceptance of new fossil fuel infrastructure: Value theory and Canada׳
s Northern Gateway Pipeline. Energy Policy, 75, 255-265.
Baier, S. L., Bergstrand, J. H., & Feng, M. (2014). Economic integration agreements and the
margins of international trade. Journal of International Economics, 93(2), 339-350.
Gomes, I. (2015). Natural Gas in Canada-what are the options going forward?.
Low, P. (2016). International trade and the environment. UNISIA, (30), 95-99.
Vernon, R. (2015). International investment and international trade in the product cycle.
In International Business Strategy (pp. 35-46). Routledge.