Business Environment
Task 4.1: Discuss the significance of international trade to UK business organizations
International trade is the exchange of capital, goods and services across international borders or territories (Wikipedia.org). It is vital to the economy of a country since it may benefit a significant share of gross domestic product (GDP).
Without international trade, the UK organizations would be limited to sell its goods and services only within their own border. Therefore, International trade is vital to the UK economy as it can sustain UK economics’ strengths and progress in the increasingly competitive global economy.
The significance of international trade brings numerous benefits to UK business organizations such as it enhances the domestic competitiveness, maintain the cost competitiveness in the domestic market. On the other hand, it reduces the dependence on existing domestic markets and could enhance the potential for expansion of business globally to gain global market shares. The long-term benefits of international trade results UK’s economy to become prosperous and have the influence to control the global economy.
In the meantime, international trade also attracts large international enterprises to invest in UK, which may benefit the UK economy such as improve the local employment and takes advantage of new technology skills.
Task 4.2: Analyze the impact of global factors on UK business organizations
Business may affect by external environment due to some global factors in areas of economic, political, legal, social and technological, these factors bring some impacts to the UK business organizations, as follows,
Economic factors – These factors reflect in the global economy such as, the rise of living standards indicate an increase in demand for goods or services, thus providing opportunities for UK business organizations to increase their production, the price will therefore increase and the organizations are making profit for their business in
International trade is the exchange of capital, goods and services across international borders or territories (Wikipedia.org). It is vital to the economy of a country since it may benefit a significant share of gross domestic product (GDP).
Without international trade, the UK organizations would be limited to sell its goods and services only within their own border. Therefore, International trade is vital to the UK economy as it can sustain UK economics’ strengths and progress in the increasingly competitive global economy.
The significance of international trade brings numerous benefits to UK business organizations such as it enhances the domestic competitiveness, maintain the cost competitiveness in the domestic market. On the other hand, it reduces the dependence on existing domestic markets and could enhance the potential for expansion of business globally to gain global market shares. The long-term benefits of international trade results UK’s economy to become prosperous and have the influence to control the global economy.
In the meantime, international trade also attracts large international enterprises to invest in UK, which may benefit the UK economy such as improve the local employment and takes advantage of new technology skills.
Task 4.2: Analyze the impact of global factors on UK business organizations
Business may affect by external environment due to some global factors in areas of economic, political, legal, social and technological, these factors bring some impacts to the UK business organizations, as follows,
Economic factors – These factors reflect in the global economy such as, the rise of living standards indicate an increase in demand for goods or services, thus providing opportunities for UK business organizations to increase their production, the price will therefore increase and the organizations are making profit for their business in