Framlington Property Plc Case Study: International Trade Analysis

This case study analyzes the international trade strategies of McDonald's and KFC, focusing on their operations within the UK market. It examines the significance of international trade for these companies, highlighting how it enables expansion, revenue growth, and access to lower production costs. The analysis delves into the impact of global factors, such as market opportunities and the role of the World Trade Organization (WTO), as well as the influence of government regulations. Furthermore, the study evaluates the effects of European Union (EU) policies on McDonald's and KFC, including compliance with EU regulations and the impact of liberalization on their ability to trade within the EU. The case study also mentions the Framlington Property Plc, providing a broader context to the business environment.

Task 4

Discussion on the relevance of international
trade of McDonald's and KFC
International trade allows UK citizens to expand
businesses for new and innovative goods and
services that would not be available to them without
it.
Significance of International trade to the
McDonald's and KFC are as follows:

In KFC,
If, US based companies produce products only for
domestic use, then they will fully limit their potential.
They can exports those products to other countries like
UK.
By doing trading domestically, they can attain steady
growth but if they do it internationally, they will gain
international reputation as well as great revenue.
KFC is doing international trade in UK which
increases its traffic, sales and number of consumers.

In McDonald's,
By trading in other countries, company also opens
itself up to lower production costs.
McDonald’s imports many products from other
countries for cheap price and availability.
McDonald’s has many outlets in many countries.

Analyse the impact of global factors
Global factor gives opportunity to make international trade
which is boosting UK economy.
KFC and McDonald's are operating in other countries where
they can get cheap labour and raw material.
Market opportunity:
UK has good reputation in all over the world for its
advancement in technology.
Global factor gives opportunity to these organizations to
conduct business in all over the world.

Global growth:
Global factors give opportunity to expand business in all over
the world which will be very positive for UK economy.
World Trade Organization:
WTO deals with the global rules of trade between nations.
Its main function is to ensure that trade flows as smoothly,
predictably and freely as possible.
Such as KFC is doing business in UK.

Government Impact:
Government makes rules and regulations according to the
global factors which will be convenient for UK organizations
like McDonald's.

Evaluation of the Impact of European Union
policies
After connecting with the EU, McDonald's and KFC have to
maintain all the rules and regulations.
If, KFC or McDonald's want to do business effectively, then
they need to contact with European Money Union in order
to deal in Euro.
EU policies have immense influence on UK businesses by
involving spending and taxation law, spending and
directive, inspiring business activity through support and
subsidies etc.

KFC and McDonald's can exchange their products with
other EU countries without any barrier. This is because of
Liberalization.
If, McDonald's has licenses then, they can easily export
their products to other EU countries or import products from
other EU countries.

References
Cini, M. and Borragán, N. P. S., 2016. European union
politics. Oxford University Press.
Tang, X. and et.al., 2013. Analysis of energy embodied in the
international trade of UK. Energy Policy. 57. pp.418-428.
Xu, X.and et.al., 2013. Local and global factors controlling
water‐energy balances within the Budyko framework.
Geophysical Research Letters. 40(23). pp.6123-6129.