International Trade Challenges: A Case Study of Just Eat's Expansion

This report provides a critical analysis of the key business issues that can affect 'Just Eat's' decision to expand its business into Tajikistan. It begins by introducing international trade and its impact on the global economy, highlighting the advantages and challenges companies face when expanding internationally. The report then delves into specific issues such as tariff barriers, administrative policies, cultural differences, political and environmental instability, geographic constraints, changes in exchange rates, norms and ethics, and the threats of terrorism and racism. Each issue is examined in the context of 'Just Eat's' potential operations in Tajikistan, considering both the positive and negative aspects. The analysis is supported by relevant literature, and recommendations are provided for improvement and strategic planning. The report concludes by summarizing the key findings and emphasizing the importance of addressing these issues for successful international trade.

Managing
International Trade

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Give a critical analysis on the key business issues which can affect the business decision of
trading internationally............................................................................................................3
Literature for supporting arguments.......................................................................................8
Recommendations..................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
International trade is also known as global trade which means the exchange of the
products and services between various countries. It elevated the merchandise of the commodities
in the global economy, which impacts the demand and supply and results in the increment in the
value and prices of the commodities. When the goods are sold from one to another country it is
known as export. When the goods are purchase from another nation, it is termed as import. When
a company thinks of expanding its business in other nation, there are certain advantages which
that company will get through. It will increase the production process of deliver the goods to the
users and will increase the share in the international market (Balkevicius, Sanctuary and
Zvirblyte, 2020). The report consists of a company called 'Just Eat' which is going to expand its
business in Tajikistan. Therefore, the issues which can be faced by the organisation during the
international trade is evaluated by pointing the positive and negative aspects of the trading
internationally. Further, the issues which will affect the decision taken by the enterprise.
Moreover, accordingly the recommendation is providing for the improvement and a plan will be
made based on the suggestions.
MAIN BODY
Give a critical analysis on the key business issues which can affect the business decision of
trading internationally.
The company name is “Just Eat”. It was established in 2001 in Kolding, Denmark by five
entrepreneurs and one of the its founding member Jesper Buch. Bo Bendtsen brought the
technology to the company and was also the founder. It is headquartered in London and is
operating in 13 other countries apart of UK. It acts as an intermediary between independent
takeaways and customers. The platform enables customers to search for local takeaway
restaurants, order and pay online, and choose between pick-up or delivery options. In april
20014, Just East was listen on the stock exchange of London which helped it in increasing it
share in Alloresto to 80%. In July, 2019, it merged with Takeaway.com and was acquire by it
with the deal of £ 9 billion. Further in 2020, it took a partnership with McDonalds has started to
deliver its food item in UK, which was formerly delivered by only Uber Eats (Bhardwaj, 2021).

Tajikistan is a smallest country in Central Asia, is inland and hilly. It is lined by
Afghanistan toward the south, Uzbekistan toward the west, Kyrgyzstan toward the north, and the
People's Republic of China toward the east. It has been dependent to the authority of different
kingdom since its commencement, and was under the Persian Empire for the longest time period.
In the nineteenth century, the Russian Authorities took the whole control of Tajikistan it began to
come in when Tajikistan became autonomous in 1991, following the deterioration of the Soviet
Union, and encountered a common conflict between local areas from 1992 through 1997.
The company is going to extend its service in Tajikistan for which it has to face some
issue related to the business and of trading in the global market. But there are some benefits of
commercialism in the global economy (Boboyorov, 2020). It increases the global worth of the
company as well as the recognition also shows its elevation in the market.
International trade is the economic transactions made between nations. Commonly traded
items include consumer goods such as televisions and clothing; Capital goods such as machines;
as well as raw materials and food. Other transactions include services such as travel services and
payments for foreign patents. These transactions are expedited by international fiscal payments
in which the private banking system and the central banks of the trading nations play an
important role in. It can be critically evaluated from the that there are two type of trade which
can be done by any undertaking from carrying out its business operations for earning more
profits.
For carrying out the international trade practices some issues are faced by the business
which will affect the decision-making of the organisation.
 Tariff Barriers: These barriers mostly indicate numerous taxes and duties that are
levied on imports. As host country traders find it important to generate high profits rather
than selling products in host nation. As, sometimes the case to protect foreign products
and encourage domestic items, strategic customs policies are formulated that directly
restrict international marketing activities. Sudden changes in tariffs or variable tariffs for
different product categories create uncertainty for traders in international trade. Anti-
dumping duties imposed on imports and defensive strategies make it difficult for
exporters (Chernikov and Akhmetova, 2020). In Just Eat, the business of food delivery
online can be suspected as the service which will be provided by the company will face a
challenge of the duties imposed on it services such as service tax. It will affect the

decision which are taken by the organisation in respect of starting the venture in
Tajikistan and will also impact the productivity of the company. Customs duty, as well
as indirect taxes, could constitute an obstacle to the implementation of international trade
practices in the country, which could lead to a lessening in profits.
 Administrative Policies: As both the administrative policy and rules in host and guest
countries make international trade marketing more critical. There are some countries
where companies take on a long paperwork that both exporters and importers need to
clear. Since unfair deals and operations have formalities, other problems create difficulty
for global establishments (Driss, 2017). Because worldwide traders have to change with
the legal formalities of the various projects where they want to do their work. In Just Eat,
carrying of the global trade practices, the company faces a problem that Tajikistan have
different administrative guidelines for the conduct of business practices. Since,
commencing the business in Tajikistan, the company has to complete very long
paperwork, this can be a disadvantage for company for providing the services in another
nation.
 Considerable cultural differences: Different countries have their own unique culture
and civilization and it brings some problems sometimes in order to conduct international
market operations effectively. Global customers show significant cultural or social
differences in terms of needs, preferences, habits, languages, expectations, purchasing
capacities, buying or consumption patterns. Both social and personal characteristics of
customers of different nationalities are considered real challenges that need to be
understood and integrated by the enterprise. Compared to local as well as domestic
markets, understanding the behaviour of customers from other countries could be more
complex (Gabusi, 2017). With Just Eat the company can face the problem of noticing
significant differences in cultures as well as in their operations. Since the company could
be confronted with the problem of diversity in different national languages, the
behaviour and attitude of potential customers can be increased. Because there are
expectations in the markets of customer requirements, preferences, languages, and other
issues that make it difficult for the establishment to conduct world-wide trading
practices.

 Political and environmental instability: The mixed economy are current challenges
that international companies have to face, as there are different political and economic
systems. Because the political atmosphere in the countries having mixed economy keeps
on changes, and this put an impact on the operating of the business internationally. At
the same time, the government in different countries sets its own priorities, approaches
and philosophies in order to conduct international trade. Some companies use various
restrictive methods as well as broad approaches for doing global business (Gao and Li,
2020). Regarding Just Eat, the company could face challenges of political stability as
well as the economic environment, because in Tajikistan it is a barrier and creates
difficulties in conducting its food online delivery services. As it is a nation where people
are of different min -sets and integrating in that atmosphere would be a tough and
challenges for the organisation. But it can be a benefit for Just Eat because, it has already
created its presents in the international market and knows how to deal with the political
stability for sustaining in the market. Geographic constraints: Doing long-term international trade is crucial for any business.
This is like perishable goods and services, becomes a unique concern for the global
market. Both the export and import of services and products by sea, as well as
allowances for time-consuming and risky sales tactics. Marketers must use greater
caution when segmenting or selecting international markets. When it comes to Just Eat
services of online delivery, its commodities and services that are supposed to be offered
for the effective conduct of international trading activities, the corporation may confront
location limits. It is critical to define and establish a location for the organisation while
establishing trade operations in foreign country like Tajikistan. Importing and exporting
in international marketplaces may be difficult for this company. Changes in exchange rates: Every corporation in various nations has its own money,
which must be traded for other countries' currencies. Every day, currencies are traded,
and rates are subject to change. Various currencies, such as the Indian Rupee and the
Euro, appreciate and depreciate versus other currencies on national and international
markets (Gebel, Gatskova and Karabchuk, 2021). In the case of Just Eat, the company
may run into difficulties due to differences in exchange rates between nations. Because
different countries have varying currency levels, it's tough for Just Eat to compare

conversion rates for their cars in corporate markets. Because currencies fluctuate
constantly, they are regarded as a business concern in order to properly carry out
international trade procedures.
 Norms and ethics issues: Ethics refers to moral concepts, conventions, and standards of
conduct that regulate individual and corporate behaviour. Formal laws and regulations
have a significant impact on business. There are several codes of conduct that
international commercial companies are required to follow. In addition, globalisation
practises have stressed some universally accepted ethics (Gnangnon, 2020). In the case
of Just Eat, norms and ethics might be considered a big business challenge in carrying
out the company's worldwide trade practises efficiently, as it is necessary to determine
the behaviours of various customers residing in host nations and then create automobiles
based on those behaviours. Just Eat’s main business challenge is identifying appropriate
corporate behaviour and ethical standards.
 Terrorism and racism: Terrorism is regarded as a global problem and a universal
challenge. Although international trading is not regarded economically risky, it does
pose a number of risks to a corporation. Racism also presents a barrier to international
trade and hinders its activities. Terrorism, as well as racism, is a business risk for Just
Eat when it comes to conducting trade activities for providing its service in Tajikistan.
For the organisation, it is more difficult to efficiently carry out its international trading
operations. Additionally, racism generates challenges with having racism policies in
place in a company's operations, as well as racism concerns with a company's
international trading practises in other countries.
There are also other problems and issues that affect firm decision-making in international
trade, such as constantly changing environmental conditions and worldwide warnings. Changes
and diversification in weather and natural climates, insufficient function of international bodies
supporting and regulating international trades, and variances in currency weights, standards,
measures, and marketing strategies (Ibañez Tirado, 2019). In the case of Just Eat, the company
may confront commercial challenges in making decisions in light of the ongoing changes and
diversifications in the company's environmental practises and operations. Furthermore, constant
fluctuations in currency exchange rates may have an impact on the maintenance and revenue
costs of the service in Tajikistan.

Literature for supporting arguments.
There are also other problems and issues that affect firm decision-making in international
trade, such as constantly changing environmental conditions and worldwide warnings. Changes
and diversification in weather and natural climates, insufficient function of international bodies
supporting and regulating international trades, and variances in currency weights, standards,
measures, and marketing strategies (Lemon and Rahimi, 2020). In the case of Just Eat, the
company may confront commercial challenges in making decisions in light of the ongoing
changes and diversifications in the company's environmental practises and operations.
Furthermore, constant fluctuations in currency rates of Tajikistan may have an impact on the
maintenance and revenue costs as follows:
 Tariff barriers: As a result of effectively carrying out international trade practises, trade
obstacles like as tariffs raise prices and reduce available quantities of Just Eat’s services
for country's businesses and customers, resulting in lower income, decreased
employment, and poorer economic output. As a result of the tariff barrier, the company's
GDP, wages, and employment all suffer in the long run.
 Administrative policies: The administrative factors of Just Eat have a negative impact
on the company's business practises in international markets because some countries like
Tajikistan have more rigid trade policies, which makes it difficult for Just Eat to
complete the formalities of conducting business and trade in establishing their factories.
 Considerable diversities: The working procedures of Just Eat are influenced by a wide
range of factors. In order to manage its business procedures efficiently, the corporation
must first determine behaviour, attitudes, and language, after which it may organise its
international trade practises. There is a problem in identifying client language, desires,
and preferences that could assist the organisation increase revenues.
 Political instability or the environment: Political instability, as well as workplace
discrimination, may have an adverse influence on the foreign business practises of Just
Eat. It is reasonable to assume that in order to conduct business in world-wide markets, it
must ensure that the country has political strength as well as adequate economic
conditions (Narayanan, 2021).

 Restrictions on location: While carrying out international trade operations in markets,
business practises of Just Eat are hampered by location limits. As a result of the
difficulties that some countries have in locating service stores, problems will arise in the
supplying the facilities, as well as affecting the company's various operations.
 Exchange rate fluctuations: As with Just Eat, it affects the price and quality of service,
as well as the value of domestic items that rely on imported components and raw
materials. Because exchange rates affect interest rates, investment performance, and
inflation, they are important to consider. It may have an impact on the job market as well
as the real estate sector in many countries (Onyango-Obbo, 2019).
 Ethical and normative issues: Different conventions as well as business ethics have an
adverse impact on the company's working culture and operations in this business issue.
As numerous nations have diverse ethics, companies must follow them properly to carry
out their international commercial activities. But in some countries it is difficult to
follows ethics for running their business.
 Terrorism and racism: It is more important business issues in carrying out effective
international trade procedures. Just Eat is regarded as the only source of providing
McDonalds services after Uber Eats, so it is services are costly. As a result, maintaining
good company practises in international trade markets becomes riskier for them. As a
result, terrorism will have an unfavourable influence on business operations, and racism
will make it difficult for businesses to carry out their global trade processes properly.
There are also additional business concerns and challenges that have a adverse impact on
business methods of Just Eat, such as regular changes in the organic environment. There is also a
business issue of inadequacy and inappropriateness in the function of multinational companies in
supporting and regulating international trade in global and international trading markets.
Recommendations.
From the aforementioned analysis, it has been determined that some recommendations might be
made to businesses in order to improve and execute their trade procedures more effectively in
global markets (Pataccini and Malikov, 2020). In terms of Just Eat, the following are some of the
solutions that have been suggested for improving the company's foreign trade practices:

 Creating as well as designing a drawback responsibility schemes: It is suggested that
the company construct and design a duty shortcoming scheme that might be improved by
making it available to indirect exporters and expanding it to imported inputs used in the
production of exported final products. In addition, duty prepayment options for exporting
enterprises are being phased out in order to lower credit needs.
 Enhancing availability of credit: It is difficult for exporters to obtain short and long
term loans because both are available. As a corporation, it should utilise and implements
a strategy to increase credit availability that will aid in properly managing international
trade (Ryazantsev and et. al., 2020).
 Simplification of regulations: As the government should simplify export-related
regulation, which involves lengthy bureaucratic procedures and eliminates negative
effects on new exporters.
 Improving cooperation between economic sectors: As alongside traditional policy
instruments, export growth in the company should be used to facilitate cooperation
between the Economic sectors to improve sectors.
 Combining short term and long term export growth policies: For managing the
company's universal commerce, Just Eat is advised to utilise and combine short and long
term export growth policies. Assisting export growth necessitates a combination of short
and long-term initiatives. In this context, it's critical to take advantage of
complementarity between EPPs and other domestic programmes.
 International standards: As a firm, you should use and execute foreign trade in your
operations. As a result of the international trade community's efforts, undesired
regulatory challenges for developing countries will be reduced. By encouraging
companies to utilise international standards in their operations, countries will be able to
better integrate into global value chains. Increased adoption of international standards
can help promote sustainable development because they usually embed global best
practises (Sachs, 2018).
 Regional regulatory convergence for retail: It is suggested that Just Eat work for
broader regional regulatory convergence, identifying similar solutions to their regulatory
requirements. The welfare gains would be much bigger if its important trading partners,

such as Tajikistan, converged to international norms at the same time. As a result, it
should be viewed as a stepping stone toward global regulatory convergence.
 Technical cooperation and capacity building: It is recommended that the company
adopt regulatory measures in conjunction with technical cooperation and capacity
building in order to assist other countries in complying with regulatory standards and
overcoming procedural barriers.
 Transparency: It is essential that companies have transparency in their existing
regulations in order to carry out and manage international trade strategies successfully. It
is recommended to have international cooperation as leading an international effort to
collect and freely disseminate comprehensive information on currently imposed non-
tariff measures.
 International cooperation: It is critical to ensure a predictable and rules-based trading
system in which poor countries can reap market opportunities, generate employment, and
reduce poverty. The current growing trade conflicts among the world's largest economies
are causing uncertainty, eroding the multilateral system, and endangering the
development prospects of fragile nations (Schmitz, 2019).
 New economic models: It is advised to utilise a new economic model for creating and
controlling global trade practises to Just Eat. As a result of freshly created and developed
economic models, companies are able to expand their reach and carry out business
procedures more successfully, resulting in increased earnings and revenues. Economic
models are also employed to efficiently carry out company procedures.
CONCLUSION
According to the above report, it can be concluded that international trade refers to the
practise of conducting business across global borders. It takes place in several countries, it is
both crucial and necessary to handle international trade procedures effectively. This report
provides a critical assessment of significant international trade practises as well as an explanation
of business difficulties that may have an impact on firm decision-making. In addition, it gives a
brief overview of academic and professional literature that supports claims of the business issues
faced by the company called Just Eat who is planning to start its service in Tajikistan. This study
outlines the numerous recommendations for managing foreign trade in detail.

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