International trade is about import /export, European Union, rules and benefits. I will discuss about international trade, free trade, and trading blocs. In the picture1you can see more expand explanation.
International trade means that other countries, people are allowed to bring something new or better than current country already has. Certain amount of goods, like tobacco or alcohol could be brought in for free by individuals. That calls Free Trade.
Governments are stimulating Free trade so consumers will have a wider –range of products for more affordable price. As the countries and business will have the ways to cheaper resources, they will benefit from that. And also goods are manufactured in the more operative zones.
Trading blocs are made up from the countries that join together to minimize trade barriers. World Trade Organization is trying to reduce tariffs to have vast freedom within world trade. In the meantime the European Union or Single European Market is already free. There is a tariff, which countries that are not in European Union, have to pay. And, since 31st December 1992 countries within European Union don’t have to pay tariffs for goods or services. Also if you are supplying your service overseas, you need to make sure you are following with them regulations
Picture1. United Kingdom trading position
Let’s have a look what impact does international trade have on Burberry. The Burberry introduced Impact program, which would help to improve employment and workplace state. Forum for the Future and the Ethical Trading Initiative have developed this commitments, because they are thinking about: people, process, property and product.
4.4.2 Impact of global factors.
Every country is running them businesses differently. Regulations in some countries might be similar or same but in the meantime completely different from others. Compare with, how business was run in an old days, it has changed. People have found ways to approach other cultures learn something new one from another, create solutions to sort it out old problems.
There are two elements that have effect on running an organization: internal and external. Internal factors such as employment, state, business location, capital etc. are supervised by management and external factors opposite from internal, aren’t supervised by management. There are for key factors that assigned to external element: Political, Economic, Social, and Technological and very similar to SWOT analysis: Strengths, Weaknesses, Opportunities, and Threats.
PEST analysis is simple and helps to understand market, position. It can be also used for planning, developing, and research.
There is big – sisters factors, such us World Trade Organization (WTO), Emerging Markets (BRIC), Kyoto Protocol and Rio Summit that concerns climate change.
The WTO has to look that international trade runs as smooth as possible. It’s the biggest and the only organization that looks after global rules of international trade. In November 2001, The Doha Round was launched to accomplish reform of introduction of lower trade barriers and rules.
Group of four developing countries: Brazil, Russia, India and China or BRIC first time was mention in Goldman Sachs report. The BRIC theory submit that China and India will be most known suppliers of goods and services, Brazil and Russia – giant suppliers of raw materials.
The Kyoto Protocol agreement obligates its Parties by placing internationally targets on emission depletion, while Rio +20 considers to another areas, such as: water, energy, jobs, food security and agriculture, sustainable cities, oceans and disaster preparation.
4.4.3 Impact of European Union.
When the Common Market has been formatted the EU became successful in economic growth. The Common Market helped to understand the European people and economic success of all. Also there are some problems that European Union has to work on. Changes in Common…