Unit 39
International Business
Index
© Written by Mr. P. Hebels (2010) – All rights reserved.
,P1 - Explain the international business environment in which a selected
organization operates.
Page 3
P2 - Describe the mechanisms that regulate international trade.
Page 6
P3 - Describe how the environment and culture of another country affects a
business operating internationally.
Page 9
P4 - Describe how the monetary environment affects businesses that operate
internationally.
Page 12
P5 - Identify why businesses operate internationally.
Page 14
P6 - Explain the business strategies used by a business operating internationally.
Page 16
M1 – Assess the methods to increase trade between countries and the methods to
restrict trade between countries.
Page 18
M2 – Compare how cultural differences and foreign business environments affect
multinational corporations.
Page 21
© Written by Mr. P. Hebels (2010) – All rights reserved.
, P1 - Explain the international business environment in which a selected
organization operates.
International trade is the process of selling and buying products between different
countries. With international trade you create a bigger competition on a specific
market what means that there is more competition so the sales price is lower what
brings benefits for customers. The reason a business want to go international is to
wide their market range and to reach more customers what automatically comes
with more turnover. Also with international trade you don’t limit yourself to a
national market but you join different other markets on the world. International
trade enables companies to purchase natural resources for their products in other
countries.
Why would you go international if you are a national company? There are different
answers for this question with a lot of advantages: increasing your sales,
capitalizing on tax advantages, reduces independence on existing markets and
enlarges quantity of potential investors are examples of why you should go
international.
Philips
For this task I will use the Dutch multinational company Philips. Philips is one of the
Netherlands biggest companies that sells and make their products abroad and do a
lot of international trade with companies of other countries. The company is
founded in 1891 in Eindhoven, the Netherlands. Nowadays the headquarters of
Philips are located in the capital of the Netherlands, Amsterdam. Last year (2012),
Philips made a turnover of 24,8 billion euros and a total profit of 226 million euros.
Philips stands for high quality products with a nice design. Their unique selling point
is that they always have innovative products. They develop techniques and they are
also one of the first that bring out new kind of products with new technology. Also
Philips is active on a lot of different kind of electronic markets. For example they sell
lights, fridges, televisions, radio’s, telephone’s etc. They are not focused on one
particular market but they focus on a lot of different technique markets and on all
these markets they are one of the best. Compared to other companies on this
market, Philips is different, this because there isn’t just another company that is
active on such many markets at the same time and doing so well.
© Written by Mr. P. Hebels (2010) – All rights reserved.
International Business
Index
© Written by Mr. P. Hebels (2010) – All rights reserved.
,P1 - Explain the international business environment in which a selected
organization operates.
Page 3
P2 - Describe the mechanisms that regulate international trade.
Page 6
P3 - Describe how the environment and culture of another country affects a
business operating internationally.
Page 9
P4 - Describe how the monetary environment affects businesses that operate
internationally.
Page 12
P5 - Identify why businesses operate internationally.
Page 14
P6 - Explain the business strategies used by a business operating internationally.
Page 16
M1 – Assess the methods to increase trade between countries and the methods to
restrict trade between countries.
Page 18
M2 – Compare how cultural differences and foreign business environments affect
multinational corporations.
Page 21
© Written by Mr. P. Hebels (2010) – All rights reserved.
, P1 - Explain the international business environment in which a selected
organization operates.
International trade is the process of selling and buying products between different
countries. With international trade you create a bigger competition on a specific
market what means that there is more competition so the sales price is lower what
brings benefits for customers. The reason a business want to go international is to
wide their market range and to reach more customers what automatically comes
with more turnover. Also with international trade you don’t limit yourself to a
national market but you join different other markets on the world. International
trade enables companies to purchase natural resources for their products in other
countries.
Why would you go international if you are a national company? There are different
answers for this question with a lot of advantages: increasing your sales,
capitalizing on tax advantages, reduces independence on existing markets and
enlarges quantity of potential investors are examples of why you should go
international.
Philips
For this task I will use the Dutch multinational company Philips. Philips is one of the
Netherlands biggest companies that sells and make their products abroad and do a
lot of international trade with companies of other countries. The company is
founded in 1891 in Eindhoven, the Netherlands. Nowadays the headquarters of
Philips are located in the capital of the Netherlands, Amsterdam. Last year (2012),
Philips made a turnover of 24,8 billion euros and a total profit of 226 million euros.
Philips stands for high quality products with a nice design. Their unique selling point
is that they always have innovative products. They develop techniques and they are
also one of the first that bring out new kind of products with new technology. Also
Philips is active on a lot of different kind of electronic markets. For example they sell
lights, fridges, televisions, radio’s, telephone’s etc. They are not focused on one
particular market but they focus on a lot of different technique markets and on all
these markets they are one of the best. Compared to other companies on this
market, Philips is different, this because there isn’t just another company that is
active on such many markets at the same time and doing so well.
© Written by Mr. P. Hebels (2010) – All rights reserved.
