A Detailed Literature Review on Principles of International Business

This report provides a literature review of key principles in international business, covering globalization's impact on trade, competition, and tax evasion, as well as the international business environment, including political, economic, technological, and cultural factors. It explores international trade dynamics, highlighting how countries can leverage their resources and specialize in efficient production. The report also examines investment opportunities, such as crowdfunding, wine, alternative properties, and peer-to-peer lending. It concludes that globalization has a significant impact on business efficiency, while also acknowledging potential risks for less developed countries. The document is available on Desklib, a platform offering study tools and solved assignments for students.

Principles of International
Business

Contents
Introduction................................................................................................................................3
Main Body..................................................................................................................................3
Literature review........................................................................................................................3
Globalization impact..............................................................................................................3
International business environment........................................................................................4
International trade ..................................................................................................................5
Opportunities for investment..................................................................................................6
Conclusion..................................................................................................................................6
References..................................................................................................................................8

Introduction
The given report is an inclusion of literature review of topics in course covered in the
university. This report document will dedicate its understandings towards availability of
literature regarding the topic online and will relate it to understandings of a university
courses. Several concepts in regards to globalisation, businesses environment at international,
international trade and investment opportunities are being covered in this report document.
Main Body
Literature review
Globalization impact
According to Bueno, N. and Kaufmann, C., 2021, the global economy has become
more consolidated as well as interdependent which results as globalisation. This shows in a
growth and expansion of the commerce and also to expand in a migration of the labour as
well as capital. Globalisation comes with both its advantages as well as its disadvantages. Its
advantages come with the increase in the competition, cheaper pricing of product and
services as well as in the decrease in its production cost. As per critics, most of the people
may be left behind as a globalisation result as the increase in the speed of advancement, that
results in influencing major number of multinational companies for allowing the companies
to charge prices and avoid paying the taxes due to monopolistic power. There is significant
impact caused by globalisation which are as follows;
 Increment in trade: Due to globalisation, there are significant enhancement of trade
among countries. Because of this, UK businesses can gain by focusing in items where
they have a competitive advantage. The UK, for instance, has a significant edge in the
financial services, video based games, and the nuclear power components. This
competitive advantage permits wider level exports resulting to employment creation
(Hentschel, 2021).
 Diversity of imports. Consumer products are substantially more diverse due to the
globalisation. Food imports, for instances, have also allowed the company to get the
accustomed to year-round availability of the fruits as well as vegetables.
 Tax evasion. Companies have being engaged in the move manufacturing from the
high-tax nations to the low-tax states as a result of the globalisation. Getting
advantage of the tax flaws is also a common example. Brands such as Amazon,

Apple, and Google, for instance, have taken advantage of low tax rates in Bermuda,
Luxembourg, and Ireland. As a result, the UK Treasury loses tax income.
Multinational corporations have large cash reserves, indicating that globalisation has
resulted in uneven distribution of advantages (Ahmad and et. al., 2021).
International business environment
According to Rapp and Pampel, J., 2021, international business environment
understands benefits a business to expand operations across the globe. With this, an
organisation is able to devise strategies through analysing economic hazards, cultural
differences, currency risks, legal & taxes difficulties that are concerned with International
Business Environment. In essence, the political, tax, social, regulatory and cultural, legal,
economic and technical settings makes up an Business Environment at an International level.
The setting in which international firms operate is known as the international business
environment. It brings the more of the distinctions with it. (Tzimas, 2021). There were
significant changes being observed that included:
Political environment: This includes the political interference of government in doing
the work which also affects the functioning of business. Doing the business in abroad needs
work according to the political structure of that country. Multi-party democracies, one-party
governments, constitutional monarchy, and dictatorships are only a few examples of political
systems.
Economic environment: In business situation all the elements are influence according
to economic environment. Every nation, the economic climate is extreme different from
other nation and they need to follows the environment according to their climate. Developed,
developing and newly industrialising or rising industries are the three primary groups.
Technological environment: It is the external factor that affect the technical
environment of company. Organisation needs to accept new technology that coming steadily
in market which impact continuously on business decisions. Because companies have not
controlled on external environment, for competition of purpose they need to adapt that
changes. The amount of technical innovation in various nations, as well as its acceptability, is
an essential component of the worldwide economic climate (Andresen and Bergdolt, 2021).
Cultural environment: The collection of general beliefs and values that the nation
shares is referred to as national culture. Elements like as history, language, religion,
geographic location, governance, and education are commonly viewed as forming beliefs and
values; consequently, businesses begin a cultural study by attempting to comprehend these
factors.

International trade
According to Yevtushenko, Kudinova, M. and Liashevska, V., 2021, International
commerce enables countries to extend their markets and get access to commodities and
services that might otherwise be unavailable in their own country. The market has become
more competitive as a result of international commerce. As a result, pricing becomes more
competitive, and the consumer receives a lower-cost product. An export is a product that is
sold to the worldwide market, whereas an import is a product that is purchased from the
global market. The current account portion of a country's balance of payments accounts for
imports and exports. Commerce at global level helps affluent nations in order to make the
better usage of its resources, like technology, labour and money (Sehnem and et. al, 2021).
Countries at the diverse level have varied assets as well as natural resources, like labour,
capital, land and technology, among other things. It also enables the various states for the
manufacture of the similar item in a more efficient manner which is, faster as well as for the
less money. The result of this is that, they may be able to make the offer of it at the decreased
price than any other states. If the country is also unable to make the manufacture of the item
effectively, this can get it by the trading with the state or country which can. In international
trade, this is meant to as the specialisation.
The free trade policy is not that much difficult from of the two. In relation to this
laissez-faire economics is used in order to describe this approach. Under laissez-faire attitude
no trade restriction is there. The basic premise of this is force of global demand and supply
would secure that manufacturing is to be done in effective manner. As a result, there is no
need to take any action to preserve or encourage commerce and growth because market
forces will do it on their own. Global commerce assists affluent countries in which they
proper utilize their resources like technology, money and labour. In many countries they have
various types of different assets and natural resources like labour, capital, land, technology
and many other things. This would help certain countries in order to manufacture same
products in fast and effective manner by spending less amount. In accordance with it they
offer lowest price in respect of other nation. If a country is unable to manufacture an item
effectively, it can get it by trading with a country that can. In international trade, this is
referred to as specialisation (Rajablo, Kharrazi and Amani, 2021).
Opportunities for investment
According to article published in Lew, C. and Saville, A., 2021, many new firms are
turning to crowd funding to get off the ground, rather than relying on venture capital trusts
and angel investors. In reality, crowd funding sites in the United Kingdom, such as Crowd

Cube and Angels Den, had collected more than £72 million from investors this year. Crowd
funding platforms provide investors access to hundreds of possibilities that previously were
exclusively available to venture capital companies.
Wine's value has climbed gradually since 2013, increasing by more than 20% in 2017,
making it a safe investment if customers know what to purchase. To be successful, individual
will need to learn how to recognise high-quality wines, so take wine tasting classes and
network with other investors (Lew and Saville, 2021).
Properties has always been a secure way of investing in the United Kingdom, but this
is changing as a result of Brexit uncertainty and new tax laws. Alternative property markets,
such as co-working spaces, student housing, and care home units, provide opportunities for
profit. These properties frequently offer large returns, and many of them are exempt from tax
reform since they are classified as commercial properties or have lesser valuations.
Peer-to-peer lending allows individuals to lend money to individuals without using a
bank by using internet platforms. Peer-to-peer lending services like Zopa, Prosper, and
Lending Works facilitate these arrangements. These peer-to-peer firms are usually regulated
by the Financial Conduct Authority (FCA), and they handle credit and ID checks, as well as
setting interest rates, collecting payments, and paying client taxes (Kurniawan and Umbara,
2021).
International commerce as a result has the potential for increasing the country's
capacity in order to create as well as acquire the commodities since this makes allows for the
specialisation and also therefore in a more effective resource usage. Opponents of the global
free trade has also maintained that the inefficiencies in the international commerce also exist,
putting the poor countries at a risk..
Conclusion
From this report it is being summarised that there are many significant impact of the
globalisation of the efficiency of a businesses which are working in many regions. Under the
report impact of internal business environment also illustrates about several factors that
directly or indirectly impacts over efficient working of the corporate firm.

References
Ahmad, S and et. al., 2021. Organizational non-compliance with principles-based governance
provisions and corporate risk-taking. International Review of Financial Analysis, 78,
p.101884.
Andresen, M. and Bergdolt, F., 2021. Individual and job-related antecedents of a global
mindset: An analysis of international business travelers’ characteristics and
experiences abroad. The International Journal of Human Resource
Management, 32(9), pp.1953-1985.
Bueno, N. and Kaufmann, C., 2021. Guiding Principles on Business and Human Rights.
In Elgar Encyclopedia of Human Rights. Edward Elgar Publishing Limited.
Hentschel, S., 2021. B. Overarching Principles of Tax Policy. In The Taxation of Permanent
Establishments (pp. 15-37). Springer Gabler, Wiesbaden.
Kurniawan, M.E.H and Umbara, A.N., 2021. Japanese 5S principles and knowledge
management practice in the context of small industries in the islands of
Indonesia. International Journal of Knowledge Management Studies, 12(3), pp.302-
323.
Lew, C. and Saville, A., 2021. Game-based learning: Teaching principles of economics and
investment finance through Monopoly. The International Journal of Management
Education, 19(3), p.100567.
Rajablo, S., Kharrazi, S. and Amani, A.M.I.R., 2021. Employment Rate of NanoMedicine
Graduates and Investigation on Their Attitude and Knowledge Towards Business
Principles. Medical Education Journal, 9(2), pp.40-51.
Rapp, D.J. and Pampel, J., 2021. Digitization of the audit of financial statements through
process mining: Principles, areas of application, and (alleged) goal conflict in the
audit of the internal control system (No. hal-03363251).
Sehnem, S. and et. al, 2021. The role of ecological modernization principles in advancing
circular economy practices: lessons from the brewery sector. Benchmarking: An
International Journal.
Tzimas, T., 2021. AI Governance and the Fundamental Principles of International Law.
In Legal and Ethical Challenges of Artificial Intelligence from an International Law
Perspective (pp. 103-129). Springer, Cham.
Yevtushenko, V., Kudinova, M. and Liashevska, V., 2021, August. Practical Principles of
Lean Management in Ukraine. In International Conference on Business, Accounting,
Management, Banking, Economic Security and Legal Regulation Research (BAMBEL
2021) (pp. 48-52). Atlantis Press.