International Business: Globalisation, Challenges & Cheeky Panda

This report examines the challenges to globalisation in the pre-COVID-19 era, including economic recession, protectionism, and trade wars, and evaluates three potential post-COVID-19 scenarios, favoring localisation over globalisation. It then assesses Cheeky Panda's overseas expansion options, focusing on exporting to Western Europe, and considers the impact of the localisation scenario on the company's potential success. The report concludes that while exporting offers advantages, localisation trends could present barriers to Cheeky Panda's expansion efforts due to potential customer preference for local products and a general lack of trust in foreign offerings, which could impact sales revenues and overall market penetration.

International Business

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
A. Explanation of main challenges which threatened globalisation in pre-Covid-19 period.....1
B. Explanation of which of three scenarios outlined by author is most likely to happen and
why?............................................................................................................................................2
TASK 2............................................................................................................................................4
A. Critical assessment of various modes of overseas expansion that are present to company as
well as which mode is appropriate and why?..............................................................................4
B. Impact of identified globalisation scenario that has on company's potential to expand
successfully using this mode?....................................................................................................5
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
International business is defined to trade of products, services, technology across national
boundaries and at a transnational scale. It generally involves cross border transactions of
products as well as services among two or more than two countries. It is also termed to be
globalisation. It is basically defined to be trade of offerings by companies across global
boundaries. It is basically relates to any situation where production and distribution of products
and services crosses national limits (Vrontis and Christofi, 2021). Globalisation is a shift towards
a more integrated global economy which could create larger opportunities for international
business markets. It could take place in in international markets for running business. This
report is relied on international business which is classified into two tasks where task 1 is based
on an article of globalisation of scenarios in post Covid-19 and task 2 is based on case study of
Cheeky panda that supplies eco friendly products. In task 1 it consists of various challenges
which threatened globalisation and situations that are outlined by author of article. While task 2
involves assessment of various modes of overseas expansion that are present to company and
impact of globalisation scenarios on company's capability followed by its conclusion.
MAIN BODY
TASK 1
A. Explanation of main challenges which threatened globalisation in pre-Covid-19 period.
It has been identified that era of globalisation, open borders as well as global value chains
are under pressure in terms carrying out business practices successfully (Terziev and Klimuk,
2021). With pre Covid-19 period protectionism, populism and climate change is considered
under major challenges of economic globalisation. Along with Covid-19 has created vast
challenges that could raise a question on outbreak of pandemic disease which has negatively
impacted economic globalisation business practices. According to present three scenarios that are
mentioned in article some of major challenges that has created a barrier towards globalisation in
pre Covid-19 period are as follows: Economic recession: Due to carrying of free trade policies in performing globalisation
practices it create an issue for economic globalisation practices to collapse and change it
fundamentally supply chain of company's offerings. As an outcome coronavirus
pandemic could structurally transform internal business practices.
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 Measure of protectionist: By carrying out pressure on globalisation it has rise as a
protectionist challenge for companies which is being increased globally (Grosser, 2021).
It has been identified that World trade organisation has estimated that stockpile of
importing restrictive measures has increased in year of 2009 and as a result it has affected
7.5% of global imports presently. Along with between 2018 and 2019 World trade
organisation has recorded approx. 102 new trade restrictions methods. Trade war: Due to trade war between US and China it has considered as a challenge for
companies for carrying their business practices of global trade. As due to potential of
rivalry it has led to a method of economic decoupling forcing with various American and
Chinese companies for shifting their supply chains. Supply chains: Due to safe guarding of business practices at international level it has
lead to create a major challenge in identifying proper supply chain for their products into
international markets. As a result it has hampered working practices of companies I
higher numbers and it could lack in productivity of companies. Sustainable development: With rise of coronavirus pandemic one of major challenge in
carrying out business practices on international basis which could accelerating progress
on sustainable development objectives. Due to pandemic disease it has set back human
development which could hamper sustainability practices of company.
 Risk of financial crisis: As coronavirus pandemic has lead to challenge of financial crisis
in international markets that has resulted in thriving global value chain working practices
which slows down economy of countries.
B. Explanation of which of three scenarios outlined by author is most likely to happen and
why?
The three scenarios that are outlined by author states about post situation of Covid-19
with its impact (Christofi, Vrontis and Cadogan, 2021). These three scenarios deals in carrying
out business practices after pandemic disease. These three scenario are as follows: Scenario 1: Implementing localisation practices rather than using globalisation business
practices. Scenario 2: Carrying out regionalisation practices in place of using globalisation.
 Scenario 3: Continuation of carrying out international business practices.
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From these scenarios that are outlined by author in article the scenario which is most
likely to be happened in corporate business is using practice of localisation rather than
globalisation. As due to rise of coronavirus pandemic there are various challenges which have
occurred and faced by corporate markets and companies. Due to rise of coronavirus pandemic it
has given rise to financial crisis and economic slow down in term currency (Peng and Lin, 2021).
These concerns have created recession and safety issues as well towards supplying of products
and services to customers. With rise coronavirus pandemic every country's markets are facing
economic issues and they have faced financial crisis due stoppage in running out business
practices with concern of spreading of disease among individuals. Along with many other
challenges are faced by markets and in order to deal with them these situations are likely to be
happened for dealing with international business practices. And from outlined scenarios use of
localisation practices could as an alternative for dealing with economic situations of countries
rather than taking use of international business practices.
As in this scenario coronavirus pandemic could lead to collapse of global value chains as
national governments for adapting protectionist policies as well as could force companies to
relocate their production services closer towards business country in order to avoid a reliance
number on foreign suppliers. They could carry participation of companies in both inter-regional
and intraregional value chain that could be decreased. By applying localisation policies with
protectionist mode it could help in avoiding certain risks that are to be produced by foreign
suppliers (Bratianu, Stanescu and Mocanu, 2021). As financial crisis with a due time could be
resolved by taking use of offerings of home country. Along with economic globalisation
practices could be handled by having limited number of suppliers of home country. These
practices could lead in maintaining a close supply from nearer places in order to get currency
value chain towards companies. This practice could lessen chance of facing of loses in corporate
markets.
TASK 2
A. Critical assessment of various modes of overseas expansion that are present to company
as well as which mode is appropriate and why?
From case study of Cheeky panda it has been analysed that company is considering their
overseas expanding practices in Western Europe. And in order to carry out expansion practices
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in international markets it is essential for company to implement some modes of overseas
expansion in order to perform expansion practices effectively. These practices provides help and
guidance to Cheeky panda in order to carry their overseas expansion practices in Western
European markets. For carrying up a critical assessment of various overseas expansion modes
that present in company and could be implemented by them for expanding their business
practices are explained as follows: Exporting: It is considered to be easiest measure of entering an international market. This
entry modes carries an advantage of avoiding expense of establishing operations in new
international countries. Cheeky panda could use this overseas expansion mode for
distributing their eco friendly products in a new country that is carried on contractual
agreements with a local distributor (Pufpaff and McCann, 2021). There is a promotion
technique where Cheeky panda required to let potential customers know about its
offerings which could be carried through advertising, local force or trade shows. Licensing and franchising: It is said to be specialised modes of entry which has
intellectual property factors of licensing with new technology. This overseas mode of
expansion carries fast entry, low cost and has less risks. This mode basically allows
another individual to duplicate company's business in different location. While
franchising states in receiving a fee from individual duplicating business along with
selling their business. This overseas expansion mode could be used by Cheeky panda for
expanding their business practices at Western Europe. Partnership and strategic alliance: It is another expansion mode that is carried through
strategic alliance with a local partner. It basically involves contractual agreement among
two or more than two companies stipulating that involved parties will cooperate in a
certain way for a particular time to accomplish a common motive (Kotyla,2021). It
basically shares cost reduce investments that are required and also it is considered to be a
local entity. This overseas expansion mode could be used for entering their business
practices into Western Europe. As it could carry its practices with a partnering company
which could help in establishing their business practices in Western Europe effectively in
their markets.
 Acquisition: This overseas expansion mode is a transaction where company could gain
control by purchasing other company's stock, exchanging stock and paying towards
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owners. In this Cheeky panda could acquire company of Western Europe and could carry
their expanded business practices as a whole.
From these overseas expansion mode Cheeky panda could implement business
expansion mode of exporting in order to carry their business practices in parts of Western
Europe. It could proved to most effective business expansion modes as it does not requires to get
license for running practice as well as there is no requirement of paying any fee for performing
business practices (Aparicio, Ramos, Casillas and Iturralde, 2021). Cheeky panda could easily
sell their eco friendly products to parts of Western Europe.
B. Impact of identified globalisation scenario that has on company's potential to expand
successfully using this mode?
By using overseas expansion mode of exporting it could create in having international
business practices in global markets. It could be analysed that from above identified scenario
which reflects on using localisation business practices rather using international business
practices some how could create an impact on Cheeky panda for implementing their overseas
expansion mode of carrying out exporting in Western Europe. As Cheeky panda could face
barriers in performing exporting practices of their eco friendly products in Western Europe.
Along with there is high risk of exporting products to other countries as individuals of Western
Europe those prefers localised products and offerings will not avail company's services which
could lead to reduce in sales revenues of company (Kolcava, Rudolph and Bernauer, 2021).
There is issue that could be arise in market is of trust and faith as most of customers do not trust
on other country's product and services that could lead to create low customer base for company
in European markets.
CONCLUSION
It has been concluded from above report that international business is considered to
method that relates in carrying out business practices across global boundaries. This report shows
explanation of various challenges that are faced by companies in pre Covid-19 period and
various identified situations that happened in Covid pandemic times. Along with it carries an
explanation of case study of Cheeky panda that wants to expand their business. It assess various
modes that are required for having overseas expansion of company. At last there is explanation
of determined globalisation scenarios that could an impact on company's potential for expanding
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their business practice. It could create a barrier in carrying out business practices effectively in
international markets.
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REFERENCES
Books and Journals
Aparicio, G., Ramos, E., Casillas, J.C. and Iturralde, T., 2021. Family Business Research in the
Last Decade. A Bibliometric Review. European Journal of Family Business .11 (1).
Bratianu, C., Stanescu, D.F. and Mocanu, R., 2021. Exploring the Knowledge Management
Impact on Business Education. Sustainability .13 (4). p.2313.
Christofi, M., Vrontis, D. and Cadogan, J.W., 2021. Micro-foundational ambidexterity and
multinational enterprises: a systematic review and a conceptual
framework. International Business Review .30 (1). p.101625.
Grosser, K., 2021. Gender, business and human rights: Academic activism as critical
engagement in neoliberal times. Gender, Work & Organization .28 (4). pp.1624-1637.
Kolcava, D., Rudolph, L. and Bernauer, T., 2021. Voluntary business initiatives can reduce
public pressure for regulating firm behaviour abroad. Journal of European Public
Policy .28 (4). pp.591-614.
Kotyla, C., 2021. Automatic e-invoice data entry into the AIS system of Polish local
government. In 37th International Business Information Management Association
Conference. International Business Information Management Association.
Peng, M.Y.P. and Lin, K.H., 2021. International networking in dynamic internationalization
capability: the moderating role of absorptive capacity. Total Quality Management &
Business Excellence .32 (9-10). pp.1065-1084.
Pufpaff, M. and McCann, D.P., 2021. Combating Toxic Products in China: Concerned Parent
Turned Responsible Entrepreneur. In Doing Good Business In China: Case Studies In
International Business Ethics (pp. 185-190).
Terziev, V. and Klimuk, V., 2021. Factors and mechanisms affecting innovation development of
industrial business organizations: cooperative resource model. Available at SSRN
3903790.
Vrontis, D. and Christofi, M., 2021. R&D internationalization and innovation: A systematic
review, integrative framework and future research directions. Journal of Business
Research .128. pp.812-823.
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