International Business Report: Drivers, Barriers, Ethical & Cultural

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This report provides a comprehensive overview of international business, examining key drivers such as market demand and cost-effectiveness, and barriers including tariffs, regulatory hurdles, and quotas. It analyzes ethical and social issues, including corporate social responsibility, and discusses cultural factors influencing business operations. The report explores expansion modes, using the PESTLE model to assess the political, economic, social, technological, environmental, and legal factors impacting UTH Milk's potential expansion into China. It highlights the importance of adapting to local market conditions and adhering to ethical practices for successful international ventures. The report also addresses trade limitations and the various strategies that businesses can use to expand their presence globally.
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INTERNATIONAL
BUSINESS
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Executive summary
The cause for the prevailing record is to have in-depth information approximately the
idea of an international organization that considers region past the bounds of the house
nation. The record accommodates of communicate upon enlargement of organization at the
aspect of its precise drivers that plays in the back of the associated enlargement. It
furthermore consists of a number of the alternate limitations that catch 22 situation
organization shapes internationally or easy actions. The record furthermore accommodates of
positive moral further to societal issues that can need to be taken into consideration with the
useful resource of using an enterprise at the identical time as its functions. Also, the
distinctive strategies of enlargement in spite of the fact, that an organization must expand its
existence on the global degree are being stated within the record.
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Table of Contents
Executive summary...............................................................................................................................2
INTRODUCTION.................................................................................................................................4
TASK 1: Business drivers.....................................................................................................................4
TASK 2: Barriers to International Business...........................................................................................6
TASK 3: Ethical and Social Issues...........................................................................................................7
TASK 4: Cultural Factors.........................................................................................................................9
TASK 5: Modes of Expansion...............................................................................................................10
CONCLUSION...................................................................................................................................11
REFERENCES........................................................................................................................................12
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INTRODUCTION
International enterprise refers to the alternate of merchandise, services, technology, capital, or
maybe information in the course of country wide borders in addition to at a worldwide or
transnational scale. It consists of international offers of merchandise at the side of services
amongst or different nations. Trade of financial belongings encompass skills, capital, and
people for the cause of the worldwide production of physical objects in addition to services
collectively with finance, banking, insurance, in addition to development. International
enterprise is also referred to as globalization. To the behaviour of organization at
international level, multinational groups need to bridge awesome country wide marketplaces
into one worldwide market (Nabass, E.H. and Abdallah, A.B., 2019). There is lifestyle of
macro-scale factors that quotes the style of extra internationalisation. The gift file consists of
a few elements of worldwide enterprise inclusive of a debate at the critical troubles which can
be related to the firm, change barriers, growth drivers, specific social in addition to moral
troubles, at the side of sure cultural choices in an organisation.
TASK 1: Business drivers
Drivers of the company can be shown due to the reality the thinking crucial competencies
within the enterprise employer bodily video games that could inspire improvement the
productivity in addition due to the reality the monetary-related consequences of something
common. Such have to do not forget to the revolutionary information reconsider that could
help an enterprise employer agency to benefit significance in its unique enterprise employer
sector (Nisula, K. and Pekkola, S., 2018) . To have a have a look at in addition to recognizing
the economic employer useful that could help UTH Milk with growing its enterprise
employer in China, the PESTLE model can be a concept about. The PESTLE model can be
confirmed as a tool mixed thru the manner of a method of the economic employer
corporations to select out the capacity factors just like the government that can virtually have
an impact at the everyday walking in addition due to the reality the benefit of the agency
within the enterprise employer environment.
Political: In enchantment to manual smooth further to bendy movement indoors USA.
It’s the terrific importance for UTH Milk to art work with a short just like the dirty
evaluation of the executive constancy of the United Kingdom (McAdam and et. al.,
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2017). China is an up-grading international political problem that is determined in
addition to performing in climate. Hence, UTH milk want to have a look at the
strategies in addition to tactics flock thru the manner of a method of the overall public
feature their bodies in China to format the path of movement of the economic
employer bodily video games of its individual agency.
Economical: UTH Milk are within the like manner anticipated to test the moderate
adjustable, for instance, plus further to launch rate, gross home product, enhance the
cost, price evaluation rates, further to numerous species of China to artwork with the
appropriate affiliation of monetary reasserts in addition to the diploma the mission
cash anticipated to start up the mission within the unique (Nyström and et. al., 2017).
Social: The state of China has a particularly brilliant just like cutting-edge-day
climate. The number one a part of the general population in China is inclined within
the path of improvement subjects in addition to companies at the aspect of this is the
inspiration driving why the is considered to the improvement important detail of the
planet (Martin, S.L. and Javalgi, R.R.G., 2019). In this way, UTH Milk is anticipated
to take a look at the necessities just like the requirements of the overall population
thru way of the approach of via way of means of bypass on the companies that might
be in step with the common.
Technological: The country China is a country that is diagnosed for its cutting-edge
updates. The has protective out numerous enhancements that have helped with
improving the identical antique of development within the everyday population in
addition to induced top notch enterprise employer starting too. To perform the
movement in China, its miles pretty vital for UTH Milk to broaden its improvement to
an improvement degree that could fulfil the rule of thumb of development utilized by
the UTH Milk enterprise employer tries in China.
Environmental: UTH Milk agency necessities to put together phase enterprise
employer bodily video games to make contributions within the path of the sensible
well-known country indoors China (Magnusson and et. al., 2019). The wire of biotic-
remarkable wrapping desires to help the agency in driving greater inexpensive plans
within the path of the up-degree of the everyday inexpensive adaptable.
Legal: Legal issues want to appear as one of the hard obligations that want to be
implemented thru through manner of method of Jigsaw Foods ltd. to preserve up
enterprise employer useful in China. The crook environment of China is endless-
confronted in addition to set up the economic employer indoors it are miles important
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for UTH Milk to go through a movement of assessment in addition to the crook show.
Agree from the court docket in addition to special vital information, for example,
acceptable, walking recognition cards, deal, in addition to price tips paper, further to
numerous others. It desires to be received thru the manner of method of the top notch
agency besides.
After the take a look at, it might be set on that the two most large enterprise employer drivers
that could artwork with the improvement within the enterprise employer mission of UTH
Milk inside China can be categorized as development in addition to the value-powerful UTH
Milk subjects (Luo, Y. and Bu, J., 2018).
TASK 2: Barriers to International Business
Barriers internal exchanges can be referred to as the whole lot or obligation restricted upon
the appraisal or conduct of difficult artwork in addition to services in addition to merchandise
(Rodionov, D. and Rudskaia, I., 2018). They can be demonstrated as the overall public power
provided mind that preference to be considered through the financial business enterprise
businesses to art work with associated walking within the international commercial enterprise
business enterprise market. There is a life-style of type types of trade barriers that can be
requested at the financial business enterprise task of Jigsaw Foods ltd. within the international
commercial enterprise business enterprise operations. Approximately, a number of the other
quantitative are said beneath too: The crucial impediment that regarded through UTH Milk to
art work with the execution of its walking within the international market can be
demonstrated as an obligation. The position can be considered due to the charges which can
be in all likelihood restricted through the crucial powers of America of buying the object in
something almost similar (Jin, H. and Hurd, F., 2018). The association wants to fulfil the
obligation of undertaking its obligation strength of will on a dependable reason to art work
with commercial enterprise business enterprise movement in a real situation. It is moreover
mainly crucial for UTH Milk to acquire relevant accumulate a certificates to accumulate the
recognition from the overall public characteristic experts indoors China to efficaciously
manual commercial enterprise business enterprise task in addition to not the usage of
arbitrage of the similar. In an acknowledgment to co-perform food a properly as dairy topics
indoors China, it is a way crucial for the financial business enterprise tries to acquire the food
certificates that presentations the settlement provided to the most effective of a normal
corporation to deal with its willpower within the cloth furnished through the prison meeting.
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There is a life-style of a couple of desires that can be positioned something aside for received
method indoors the dominion of America, in addition to the UTH Milk is anticipated to take
gain of the one's additives to shield impact in walking with its international carrying sports
activities sports at some point of China. Various files regarding cash in addition to belongings
beginning want to be characterised via the financial business enterprise corporation (Gugler,
P., 2017). The man or woman exercising should make sure that the association obligations
with a whole real assist, in addition, to do not revel in any participation which can restrict the
financial business enterprise components of the equal within the international environment.
Tariffs: A tariff is a form of trade law that behaves as a tax on importations of
merchandise and services. The tariff can be within the shape of a selected or ad
Valorem tax. Tariffs increase the price of the import suitable to reduce their
utilization. This price growth enhances customers to select outthe nearby choice.
RegulatoryBarriers: Any form of “legal” barriers that attempt to restriction
importation. These consist of such things as protection requirements, pollutants
requirements, and devices requirements that explain that the item has to fulfil or excel
requirements set with the useful resource of using the nearby authorities. For example,
vehicle producers frequently need to through manner of approach of by skip positive
protection rankings to promote the automobile within the uploading nation
Anti-Dumping Duties: Dumping takes place even as the sending devices beyond the
boundaries of nation manufacturers promote devices beneath the charge. The
authorities then should impart a duty at the satisfactory until the “World Trade
Organization” includes a choice the issue. Although, companies frequently declare
that the satisfactory is artificial beneath the charge to shop for extra time for them. It
is frequently difficult to decide the real charges of the business enterprise (Golesorkhi
and et. al., 2019).
Quotas: A quota, a form of trade barrier, is a restriction on the amount that could
accumulate right proper right into a nation. Tariffs similarly to Quotas are
efficaciously equal besides that authority combines earnings from charge lists even as
selling out of the dominion companies should acquire greater earnings from quotas.
This could increase the business enterprise’s export profits.
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TASK 3: Ethical and Social Issues
Corporate Social Responsibility: It can be saved as a sustainable and ethical manner in which
organization operating in the market effectively. Basically it does focus on the human rights,
the community, society, environment and many more. For the purpose of doing business in
international market successfully, corporate social responsibility plays an important role as it
is directly leads to the success. The SME of United Kingdom is interested in expanding their
business in the Chinese Market. For the same purpose it is necessary for them to maintain the
corporate social responsibility is and practices in the market as it leads to the improvement of
public image of organization. Public image can be saved as an important factor for the
purpose of attracting the customers so that they can purchase the product of organization.
SME of United Kingdom wants to earn profit in the market of China. So it is necessary for
them to complete all the corporate social works which are based on the product which is
produced by the organization (Fuad, M. and Sinha, A.K., 2018) . Milk contain various protein
which is very healthy for children, the organization should Express this in the market. They
can also start campaign for the purpose of providing free milk service in the local market
which leads to the improvement of brand of a company. Corporate social responsibility also
leads to the increasing brand awareness and reorganization. For the purpose of creating the
brand awareness by corporate social responsibility, the SME of United Kingdom has to
layout the commitment which include ethical and social values product. It also leads to the
savings of cost. SME of United Kingdom is doing business in international market with
targeting the market of China of children. The organization has to use various ways which
reduce the production costs such as less packing. Milk Company of United Kingdom is
saving cost by targeting and fixing the customers (Valenzuela-Fernandez and et. al., 2019).
Another importance of Corporate Social Responsibility is that it provides benefits for beating
the competitors as CSR leads to showing the organization unique from other organizations. It
brings various social values in the business which works as competitive benefit in the market.
For the purpose of creating good image of organization, the management is a arranging
various seminars which results in giving various advantages to competitive in the market.
Organization should focus only on showing the product as unique quality.
It is also seen that corporate social responsibility increases the customer engagement. 8 create
a good image in the social media which attracts the customers. It is in the hand of customer
that what they want to purchase. Customer engagement leads to the creation of loyal
customers for the organisation (Crane and et. al., 2017). Employee engagement can be
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considered as another factor of corporate social responsibility so the two employees working
in organisation can enjoy the work and do effective and efficient work. For the purpose of
engaging the employees UK SME is making various strategies in the local area.
TASK 4: Cultural Factors
Culture refers to the shared values, believes, arts, attitudes and many more of an individual or
an organization. There are various employees who work in an organization and all the
employees has different culture which shows the cultural diversity like as prospective
experience different background people and many more (Catanzaro and et. al., 2019). It is
necessary to have the own culture of organization so that they can operate the business in a
specific manner. The given business in the report, have to consider the culture for
international business operations. The organization is planning to do the business in the
market of China. It is stated that the SME of United Kingdom have to consider various
cultures which include ethnicity gender age income level nationality e religion work
organization and many more.
The organization is required to consider the culture where they are operating
internationally. Thinking about the complete Nation because there are various factors which
influence the business on the basis of national boundaries and the reference point will be we
versus they.
Every Nation includes various subcultures and it is necessary for the business to found that
subculture flexible. Along with this a country also has various people having two or more
culture. National culture can be understood as a significant activity of the organization for the
purpose of reach on a successful point (RomeroHernández, O. and Romero, S., 2018). UK
SME is required to understand the culture of Chinese Market also where it is analyzed
director what the people want from market. They should perform various National culture
activity is a firstly in the organization for the purpose of knowing about the decision-making
factors of purchasing of customers (Astrachan and et. al., 2020). For instance, UK SME they
should include their own culture with the national culture. While they are providing training
sessions to their employees they have to try and their employees according to the local
culture so that they can attract the customers. It is also a strategy of national culture. One
more thing which organization can share own and national values in the Chinese Market.
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Next important factor of culture of people is factor to operate the business in the international
market. The employees want to generate the revenue by doing operations in the international
market (Tang, L., 2017). For the same purpose it is necessary to understand the people
behavior. Culture diversity gives the advantage to competition in the business but it is very
difficult to successful e cultivation of diversity. It is the reason of recommending the UK
SME to hire the local employees for the purpose of doing business in other countries which
helps the organization in interacting the people. UHT milk is a good brand but people are
interacted with the product because of unknown values. In this condition it is recommended
to SME of United Kingdom to understand the customer behavior. Milk is a choice of 3 to 7
years age to children so they are required to establish the product values in front of parents.
TASK 5: Modes of Expansion
Methods of international: When an organization wants to do the business activities globally
then the internationalization works as primary sites for the attention (Ashraf and et. al., 2020).
It can be said that it is a subsequent process under which organization stores activities which
are related to economy as all the factors internal as well as external motivate the organization.
UK SME organization is planning to do the business in international market. It include a wide
variety of ways which are divided into three parts i.e. export based method, equity methods
and non-equity methods.
Export based methods: It is the primary way under which organization start business in
international market under which organizations do manufacturing of products in the domestic
market and export in the other markets (Siciliano, M., 2017). It can be said that it is the oldest
method of internationalism. UK SME wants to do the business in Chinese market for the
purpose of gaining revenue. This method includes both export method as well as indirect
exporting method.
Indirect Exporting: When any organization is not doing International activities directly in the
international market by itself and taking the help of intermediaries for the purpose of
providing products and services in the forum is known as indirect exporting method.
Direct Exporting Method: when an organization is it directly provide the products in the
foreign market is known as direct exporting.
Equity based methods for internationalization: it is stated that the organization can do the
business in international market in the form of patent copyright Trademark and many more
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(Aichhorn, N. and Puck, J., 2017). On the other hand the non equity based methods include
licensing, contractual agreement and franchising.
CONCLUSION
From the winning report, it’s mentioned to in fashionable be concluded that the
company UTH Milk must pay hobby giant opportunities inner China with the turning into an
association of turning into broaden calculation similarly to techniques. The boom of this
confined variety affiliation ought to expose the access for several companies to interest on
completing improvement evaluation internal their structure. The opportunity of the proposed
improvement concept is immoderate as an example the boom approach must turn out to be hit
very last results for the industrial employer. UTH Milk are expected to interest publish
changing its movement to social further to its checks of China to enhance its networks within
the path of much like time goes on. The association desires to further fill in constant with the
industrial employer environment of China similarly to art work with the splendour to the
identical. To moreover preserve up at the side of making due within the marketplace of China
for UTH Milk need to be inventive with its updated techniques similarly to strategies at the
side of the implementation of something basically the identical with whole opportunity
further to ability.
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REFERENCES
Books and Journal
Aichhorn, N. and Puck, J., 2017. “I just don’t feel comfortable speaking English”: Foreign
language anxiety as a catalyst for spoken-language barriers in MNCs. International
Business Review, 26(4), pp.749-763.
Ashraf, B.N., Zheng, C., Jiang, C. and Qian, N., 2020. Capital regulation, deposit insurance
and bank risk: International evidence from normal and crisis periods. Research in
International Business and Finance, 52, p.101188.
Astrachan, J.H., Astrachan, C.B., Campopiano, G. and Baù, M., 2020. Values, spirituality
and religion: Family business and the roots of sustainable ethical behavior. Journal of
Business Ethics, 163(4), pp.637-645.
Catanzaro, A., Messeghem, K. and Sammut, S., 2019. Effectiveness of export support
programs: Impact on the relational capital and international performance of early
internationalizing small businesses. Journal of Small Business Management, 57,
pp.436-461.
Crane, A., Henriques, I., Husted, B.W. and Matten, D., 2017. Measuring corporate social
responsibility and impact: Enhancing quantitative research design and methods in
business and society research.
Fuad, M. and Sinha, A.K., 2018. Entry-timing, business groups and early-mover advantage
within industry merger waves in emerging markets: A study of Indian firms. Asia
Pacific Journal of Management, 35(4), pp.919-942.
Golesorkhi, S., Mersland, R., Randøy, T. and Shenkar, O., 2019. The performance impact of
informal and formal institutional differences in cross-border alliances. International
Business Review, 28(1), pp.104-118.
Gugler, P., 2017. Emerging countries’ country-specific advantages (CSAs) and
competitiveness of emerging market multinational enterprises
(EMNEs). Competitiveness Review: An International Business Journal.
Jin, H. and Hurd, F., 2018. Exploring the impact of digital platforms on SME
internationalization: New Zealand SMEs use of the Alibaba platform for Chinese
market entry. Journal of Asia-Pacific Business, 19(2), pp.72-95.
Luo, Y. and Bu, J., 2018. Contextualizing international strategy by emerging market firms: A
composition-based approach. Journal of World Business, 53(3), pp.337-355.
Magnusson, P., Westjohn, S.A. and Sirianni, N.J., 2019. Beyond country image favorability:
How brand positioning via country personality stereotypes enhances brand
evaluations. Journal of International Business Studies, 50(3), pp.318-338.
Martin, S.L. and Javalgi, R.R.G., 2019. Explaining performance determinants: A knowledge
based view of international new ventures. Journal of Business Research, 101, pp.615-
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McAdam, R., Bititci, U. and Galbraith, B., 2017. Technology alignment and business
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