Aim and purpose
The aim of this unit is to introduce learners to the role played by international business. The importing and
Exporting of goods and services are important economic activities to any economy. Learners will study
National and international businesses and the framework in which they operate.
In this unit you must explain the importance and differences of international trade. You will explain key economic terms and demonstrate an understanding of how to trade internationally. Many of the tasks will cover several Passes and Merit Criteria.
Barr’s are soft drink manufacturers who are famous for manufacturing Irn Bru. They have just appointed you as their marketing manager and are keen to explore the idea of selling Irn Bru abroad. They have identified Germany as a possible option.
They have asked you to research into the benefits and costs of doing business internationally. They have asked you to write a report and then present your findings to the board.
P1 explain the international
Business environment in
Which a selected organisation
You decide to look at a company that is successfully trading internationally.
Write a profile of a multi-national company
Where is its headquarters? Where does it sell its goods or services? What percentage of its market are in different countries etc? How long has it traded in different countries? Turnover etc?
Answer the following questions?
What is Globalisation?
What are the benefits and costs of Globalisation?
What is an import?
What is an export?
What is the balance of trade?
Show the UK’s balance of trade figures.
Do we import more than we export?
What are the main goods that we import in the UK?
What are the main good that we export from the UK?
What are the benefits and costs of importing goods to the UK?
What are the benefits and costs of exporting our goods?
You feel you should give the board a broader understanding of international trade and some of the factors that influence international trade.
P2 describe the mechanisms that
Regulate international trade
What is the EU? What is the Euro?
Give a simple description of the EU and the euro.
What is the WTO?
Describe what the WTO is and what its aims are.
What is a trade mission?
Explain what we mean by the term trade Mission. Say what it tries to achieve. Give an example.
How do they encourage trade?
What is protectionism?
Discuss: Tariffs, Embargoes, Quotas,
What are the advantages and costs of protectionist strategies?
You feel that your staff and board members need to be reminded that cultural and environmental issues may affect business with different cultures. You decide to prepare a poster for your presentation and to put up in offices highlighting the differences that sometimes exist internationally.
P3 describe how the
Environment and culture
Of another country affects
A business operating
Create a poster highlighting the difficulties you may encounter in doing business in a foreign country? (Language, culture, legal, currency, trade restrictions, time zones, religious considerations etc)
Explain why these may cause difficulties. Give some examples
Some members of the board have expressed concerns about currency fluctuations between the pound and the Euro. They are also unsure how Barr’s could sell Irn Bru abroad. Explain about currency exchange and what options Barr’s have in selling abroad.
P4 describe how the monetary
Businesses that operate
Explain what we mean by the term Exchange rates. Give an example.
Why may it be difficult to sell goods in another country? Explain about the language, connections with business (transport, retail, distribution, marketing )
What are the barriers involved with a foreign company selling goods in a different country(e.g. People do not know the brand, quality of