5. International Business

• Give a definition of international trade

  This is the buying and selling of goods to and from foreign countries. It is impossible for any country to be self sufficient and this is why governments encourage international trade.
• Give 2 advantages of international trade

  The first advantage of international trade is there are larger markets where firms can sell their products, this larger market allows for increased sales and therefore more profit.

  The second advantage there is a greater variety of goods available for the consumers. This creates a better standard of living in the country
• Give 2 advantages of international trade

  The first disadvantage of international trade is the increased competition as there are so many more producers trying to sell their goods. This means a businesses marketing must be better.

  The second disadvantage is the additional costs involved as you will need to transport your goods and may need new packaging in other languages
• Discuss the impact of international trade (1/3)

  International trade is the buying and selling of goods to and from other countries. The marketing mix is where a business will have the right product at the right price in the right place using the right promotional methods.

  In terms of the product a business may need to change due to legal, traditional and cultural differences. If the product is technical the business may need to change the sockets or different units of measurement.
• Discuss the impact of international trade (2/3)

  In terms of price a business may need to look at the economy in that country when setting a selling price. A business must also be aware of exchange rates and currencies, along with transport costs.

  In terms of promotion a business will need to ensure that their packaging and advertisements are in the language of the country and cultural differences respected.
• Discuss the impact of international trade on the marketing mix (3/3)

  In terms of place a business will need to consider things such as transport methods and packaging of the product. They will also need to consider the climate in that country

  In conclusion a business must take into account a range of aspects in regard to the marketing mix when trading internationally and make changes accordingly to meet the needs and wants of the market in each country.
• Discuss 2 implications of the global market for the local economy

  The first implication on the economy is the global market allows opportunities for a business to sell their products on a worldwide base. However this larger scale comes with increased competition.

  The second implication of the global market is the local businesses need to be able to make use of available technology to give them a business presence in the global market. This means that substantial capital investments in technology is required and it need to be kept up to date