INTERNATIONAL BUSINESS Unit 2 Business Development GCSE Business Studies.

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Presentation transcript:

INTERNATIONAL BUSINESS Unit 2 Business Development GCSE Business Studies

International Business Trading on a worldwide scale

International Trade Benefits Larger market – increased sales and profits Economies of scale Increase variety of goods Political reasons Drawbacks Increased competition Distribution issues Documentation Language Currency Cultural Differences

Impact of International Trade on Marketing Mix Price Set appropriate to local market Take account of exchange rate Promotion Alterations: –Language –Cultural differences Place Available to target market Transportation Product Alterations: –Legal requirements –Technical issues –Consumer tastes

Implications for Local Economy Opportunity to sell on worldwide basis Increased employment opportunities Increased competition Businesses need training and assistance in global trade Businesses need to be able to use technology Businesses need to research the market thoroughly Innovation Quality

European Union (EU) 27 Member States Austria Belgium Bulgaria Cyprus Czech Republic Denmark Estonia Finland France Germany Greece Hungary Ireland Italy Latvia Lithuania Luxembourg Malta Netherlands Poland Portugal Romania Slovakia Slovenia Spain Sweden United Kingdom

Role of the EU To promote social and economic progress among its members To set directives for member states The Single Market, involving: –Free movement of goods –Free movement of services –Free movement of people –Free movement of capital

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