Pages in this set

Page 1

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Monday 6 January 2014
International Business Revision!

Unit 3 Business Studies
! Increased
compe++on
for
domes+c
producers

Common
external
tariff
outside
the
bloc
can
increase
cost
or
of

WHY DOES A BUSINESS SEEK INTERNATIONAL raw
materals

MARKETS?! Agreements
difficult(EU
and
UK)

Product
or
marke-ng
condi-ons
that
may
prompt
a
business…

Page 2

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Monday 6 January 2014
43.6
Services
TATA
acquired
Jaguar
Land
Rover,
Corus
&
Tetley
(40000

9.6%
Agriculture
employees)

46.8%
Industry

! !
Barriers
to
market
entry


For
UK
businesses:

Although
many
economic
&
financial
reforms
since
1990´s


Opportuni-es
BUT.....

Access
to
new
export
markets
and
increasing
wealthy
Both
are
difficult…

Page 3

Preview of page 3
Monday 6 January 2014
New
resources
eg
mining
and
oil
Disadvantages

Rise
in
China´s
demand
for
raw
material
and
commodi+es
Can
lead
to
over-reliance
on
one
area
of
the
economy

generally
Compara+ve
advantage
can
move
elsewhere

China
a
leading
player
in
seeking
raw
materials
Emerging
economies
oeen
rely
heavily
on…

Page 4

Preview of page 4
Monday 6 January 2014
Labour
costs
increase
Cigareces:
raw
materials,
light,
energy,
water
costs;
packaging;

Supplies
and
materials
higher
costs
transporta+on;
health
damage
costs;
buying;
distribu+on;

Controlling
environmental
damage
increase
costs
environmental
cost-
possibility
of
fires,
liVer,
contamina+on.


Change
in
organisa+on
culture
expensive

If
Compe+tors
less
ethical
so
lower
costs/prices…

Page 5

Preview of page 5
Monday 6 January 2014
Social/cultural
differences
in
doing
business
domes+c
firms.
However
cheap
labour
a
source
of
compara+ve

Language
advantage.


Business
mee+ngs
approaches
Protec-onism
against
`unfair'
foreign
compe--on
­
On
the

E.g
emo+onal
or
reserved
part
of
foreign
businesses
takes
the
form
of
two
par+cular

Problems
of
misunderstandings

prac+ces:…

Page 6

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Monday 6 January 2014
Not
always
the
case
50
years
ago
there
were
a
lot
of
inward
Denmark
&
Sweden
collaborated
to
build
a
22
mile
bridge

looking
trade
policies
across
the
sea,
integra+ng
their
local
economies
on
both
sides

Inward
Looking
Trade
Policies
of
the
water

Use
import
controls…

Page 7

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Monday 6 January 2014
Glocalisa+on
adapta+on
for
local
market
Inves+ga+on
in
a
distribu+on
system
in
the
new
market,

Segments
served
&
revenue
&
profits
increased
possibly
by
senng
up
retail
outlet

BUT
less
economies
of
scale/market
research
&
adapta+on
of
Set
up
produc+on
in
the
new
target
market,
building
factories/…

Page 8

Preview of page 8
Monday 6 January 2014
marke+ng
sales
and
manufacturing
is
only
brought
to
foreign
Technology-
MNCs
have
large
amounts
of
capital;
they
indulge

country

in
huge
amounts
of
research
and
develop
new
technologies.
At

Effects
on
wider
economy-
profits
can
be
repatriated
home,
the
same
+me,
the
transfer
of
technology
to…

Comments

emily

Report

Helpful thank you!

Bobby sanghera - Team GR

Report

really good revision pack! 

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