International trade is a broader form of business in which one company of one region, does the business with the another entity in the other nation (Krugman, 2008). This can promote the global business and by this the relationships among the nations can be improved. It is a welfare of the husbandries of the regions. The report is based on PESTEL analysis of the entity while doing th e trade at a global level. As these are the most prime tools which can help the company in assessing and evaluating all the external elements of a business. Next PLC is a retail business operator, it is operating the trade activities in various nations. The entity is functioning major in clothing and footwear sectors. The purpose of the study is to identify the role of the external factors in international business.
International laws are very important as these helpful in managing the national resources also. There are some external factors which can have influence on the various trade policies which are having an influence on national business (Hummels, 2007). A PEST analysis can be helpful in assessing all those factors which are related wit the external elements of the trade terms. The political issues are those problems which can create the situation the tax policies and revenue methods. Economic factors can be related with the demand and supply issues of the products and services. If the nation is doing the trade in the other nations then it has to take care of all those policies which are influencing domestic plans (Keller and Yeaple, 2009). The another element is social factors to carry a business it is important to take care of the social issues as it the society in which the business is to be operated and managed. If the goods' and services are to be provided as per the demand and need of the society then it can be beneficial for the company. The another element is technical the technology is emerging day by day and for the success of the business it is important to pay attention on the latest trends and updates so that the trade can be done in smoother way. This analysis in helpful for the broader and other dimensions also which are elated with the global business. By using this concept the investing company can have a knowledge of all the external factors which are having a very vital role in managing all the operations related with the international trade. In below mentioned way the PESTEL analysis in the context of national and other dimension broader scope is explained as under:
Have a look at our latest dissertation samples!
These factors decide the limit at which the government can use its governmental powers to effect the international trade (Hummels, 2007). In it the government impose various taxes and duties on the trade so that the business can be done properly and the balance between the fiscal policy and tariff rates can be balanced. Political factors can be related with the governmental rules and regulations which can make the influence on the national and international trade. Ton the trade in region can be very important for the company as it is the duty of the management of the entity to pay attention on all the aspect which are related with the regulatory and revenue department. The governing authorities avail the taxes because they have to collet the fund then use it in various governmental activities so that the fund of the society can be utilized for it. When the trade is done with the nations outside the local limits then it can affect the monetary and regulatory policy of both the nations (Krugman, 2008). The business owners of both countries have to take permission from their government so that all the business activities can be operated through a proper way. Every country can have its own governmental policies which can have influence on it. So the regulatory authorities have made various policies so that it can be easy and convenient for the other business entities to operate the trade outside the nation. Thus the impact of politicians and political authorities is having very vital role in doing the business globally.
These elements pay attention on the factors which can affect the company and its business which are having a significance role in the economy (Helpman, Melitz and Rubinstein, 2007). The husbandry can affect the price Production, supply and interest rates related with the trade in a nation. It is also having a influence on the foreign direct investment polices. There are various economic situations which can be held liable for the fluctuations in the husbandry. The major factors which can be occur in the economy are the demand and supply issues related with the particular goods and services. Next PLC is a company which is having the business in various nations. It is major operating I the field of clothing, footwear and other home appliances. The company is doing the business activities in retail segment.
While doing the trade with the other nations it has to pay attention on the economic factors of that particular country and its home country (Hanushek and et.al. 2008). By this it can be able to get a proper and vague idea that the demand of the goods and services which are to be provided by the entity is high or low in the other nation. This cab leads the company in assessing the estimates sales of it. Thus, the economic analyses is having very vital role in getting the proper information abut the economic fluctuations in a economy. Apart from this the recession and inflation situations are also great economic factors which can affect the business of the company while doing the trade internationally.
These factors include the cultural trends, demographics and population. This can include the buying trends and demanding situations. Thus, in it the factors which are having any kind of social influence can be explained. It is very important for the Next PLC to take care of all the social issues related with the people and customers. The business operates its functions in the society so it is the duty of the owners' not to violates the interest of the consumers. While doing the international trade the buying behaviours of the other nation's people affects very much the trade (Gilpin, 2016). The along with this the demographic issues can also be held liable for influencing the customers. So to evaluate all the social factors can be very helpful in assessing the needs and requirements of the customers in a particular region. Next PLC is operating the business activities in the field of clothing and footwear. The entity is providing the fashionable garments so if it has a plan to do the business internationally it has to assess the requirements of the population of that nation. By this it can get know about the taste and preferences of the people, this can be assist able for in providing only those products which are in trend and can increase the sales of the company. Thus the elements which can affect the buying behaviour, their taste and preferences are primly influencing factors which are covered in the social elements and are having a great significance in doing the business globally
In it the elements related to the innovations, latests trends and updates are included. Every nation must be aware about the latest trends sop that these can be clubbed in the trade and international trade this can lead the region towards the path of success. It is very important for the entity to work with all the latest trends and terotechnological advancements. When the company is having a plan to do the trade internationally then it is the duty of the management of the company to consider all the relevant matters which can be held liable for the technological advancement (Disdier, Fontagné and Mimouni, 2008). New innovations are emerging very disastrously and it is very essential for the company to do the business by adopting all those elements in the trade. In it the digital system, internet and other laser advancements can be helpful for the entity in doing the business electorally. In today's era the latest technologies are emerging day by day, so to do the business in that quick manner can be helpful for the nation and its growth. The returns are also being filed in the digital manner it is also a great part of the technological advancements. In doing the international trade the company can use the quick modes to asses the success of the business plan in that particular country. Along wit this the entity can take feedback of the people by using the modes of the technology in the trade.
In it the factors related to the inside and outside nations are described. When the trade is done between two nations then the legal matters related to both the countries are taken into record. In the consumer laws, safety laws and corporate laws are having very vital role. The corporate laws can define the duties and obligations of the manager and board of directors of the companies which are the parties of the trade. Along with this the consumers laws are also having a significance in doing the business global. To protect the interest of the customers in the other nation with which the trade is being conducted is very important. There are some legal laws and regulations which are to be followed by the regions. Legal and regulatory provisos are made to give a legal frame work to the business and its binds both the parties in a legal manner. Thus, to take care of all the legal and regulatory frameworks is very important while doing the business globally.
The elements which can influence the trade due to surroundings can be inserted in it. Tourism, farming and agriculture can be clubbed in these elements. Climate changes, weather and global changes can be a great factors which can impact the international trade in the given situation. It is the element which is having a great role in present scenario (Chor and Manova, 2012). Commercial activities are surrounded by the environment. So not to harm the surrounded climate is the most important obligation of the companies while doing the business globally. In it the weather situations and tourism is having a great role. Thus there can be some climatic issues which can be held liable for doing the business internationally.
PESTEL can be conducted of the company and its economy so that the political, economical, social and technological aspects can be identified (Chaney, 2008). It can be assist able for the investing company to identify the elements related with the political matters. It helps in assessing the economic issues also such as the boost and slow down reforms in the husbandry. Along with this technological matters can also be acknowledged by using the PEST tools and methods and this can be advantageous for the success of the company and its new venture which is to be established in the other nation. Thus the deep study of the external factors is required to do the business outside of the nation and this can be done by using the tools and techniques of PEST analysis. To evaluate all the internal and external sources is the core need for the growth of the trade by this the entity can be able to know about trade and non tariff barriers of the nations and its policies can be identified. So the external factors are the most liable elements which can influence a business in an economy.
Along with this the marking mix are also very important for doing the business internationally. In below mentioned way seven P of the marketing mix are described as under:
DISSERTATION HELP UK
Acquiring Degree With Honors Is Now Made Easy
- Premium Writing Services at Affordable Prices
- Buy Custom-Written Dissertation Samples Online
- Help from UK’s most Trusted Academic Experts
It is that item which can be able to satisfy the needs of the customers. It can be tangible or intangible. The entity has to opt right product for dong the business internationally. It should first asses the demand of the goods and then the company can provide the services according to the requirement of the goods (Chaney, 2008).
To determine the price of the goods and services is very important for the entity while doing the trade. It can be decided by using various elements It is very important aspect of the marketing plan, It helps in assessing the profit and survival of the company.
Placement and distribution is very important part of the marketing mix. The focus of this method is based on the potential buyers. It is related with the deep understanding of the target market. The intensive, exclusive, selective and franchising distribution method can be taken as a great tool in the method of the placement and distribution under marketing mix (Büthe and Milner, 2008).
It is the most important factor to carry the business, as by this the entity can use some tools to make people aware about the policies and products of the company. It can boost the brand recognition and sales. Sales organisation, public relations and advertising are the prominent factors which can be used by the company for the promotion of its products and services.
In it the employees and working members are the most prime factors which can affect the business of the entity. As they are the ultimate persons who have to deal with people and deliver the products and services. The company can provide a training to them so that they can feel more comfortable while dealing with the various customers. So it is also a great tool of the marketing mix (Bair, 2009.).
The procedures of the organisation can affect the execution of the service. It can be sales process, pay system and other distribution systems. Thus the process which can be used to provide or produce any particular product or service can be considered in it as a marketing mix.
In the service industry there must be physical evidence which can be used by the employees and it denotes that the service is delivered. Thus, the ambiance and the method of providing the service can be taken in it. It can be related with the positioning of the products and services in the market. It can attract the customers and can create an image of the quality of the goods in the mind of the consumers (Baier and Bergstrand, 2007).
Thus, in above mentioned way the seven P of the marketing mix are described and explained. These are essential elements which are having great role in doing the business or trading at international level. If the mixture of all these factors is taken in a appropriate manner the entity can sustain for long run in the market and this can lead it towards the path of the success and growth. Therefore, internal and external elements are having a great role in managing the trade or international trade activities.
In above mentioned report the tools and techniques which can be opt for doing the business at international level are described. Today's era is of opportunity and full of variations, in it the nations are promoting each other so that the business can be done at global level. The government has made the treaty with other nations so that the member countries of that alliance can do the free trade among themselves. In the given study a deep analysis of all those factors which can influence the global trade are described and explained. Thus, the report is concluded that international trade is a boon for the welfare of the economies of the nations.
- Baier, S. L. and Bergstrand, J. H., 2007. Do free trade agreements actually increase members' international trade?. Journal of international Economics. 71(1). pp.72-95.
- Bair, J., 2009. Frontiers of commodity chain research. Stanford University Press.
- Büthe, T. and Milner, H. V., 2008. The politics of foreign direct investment into developing countries: increasing FDI through international trade agreements?. American Journal of Political Science. 52(4). pp.741-762.
- Chaney, T., 2008. Distorted gravity: the intensive and extensive margins of international trade. The American Economic Review, 98(4), pp.1707-1721.
- Chor, D. and Manova, K., 2012. Off the cliff and back? Credit conditions and international trade during the global financial crisis. Journal of international economics. 87(1). pp.117-133.
- Disdier, A. C., Fontagné, L. and Mimouni, M., 2008. The impact of regulations on agricultural trade: evidence from the SPS and TBT agreements. American Journal of Agricultural Economics. 90(2). pp.336-350.
- Gilpin, R., 2016. The political economy of international relations. Princeton University Press.
- Grossman, G. M. and Rossi-Hansberg, E., 2008. Trading tasks: A simple theory of offshoring. The American Economic Review. 98(5). pp.1978-1997.
- Hanushek, E. A. and et.al., 2008. Education and economic growth. Education Next. 8(2).
- Helpman, E., Melitz, M. and Rubinstein, Y., 2007. Estimating trade flows: Trading partners and trading volumes (No. w12927). National Bureau of Economic Research.
- Hummels, D., 2007. Transportation costs and international trade in the second era of globalization. The Journal of Economic Perspectives, 21(3), pp.131-154.
- Keller, W. and Yeaple, S. R., 2009. Multinational enterprises, international trade, and productivity growth: firm-level evidence from the United States. The Review of Economics and Statistics. 91(4). pp.821-831.
- Krugman, P. R., 2008. International economics: Theory and policy, 8/E. Pearson Education India.
- Levchenko, A. A., 2007. Institutional quality and international trade. The Review of Economic Studies. 74(3). pp.791-819.
- Manova, K., 2013. Credit constraints, heterogeneous firms, and international trade. The Review of Economic Studies. 80(2). pp.711-744.
- Romalis, J., 2007. NAFTA's and CUSFTA's Impact on International Trade. The Review of Economics and Statistics. 89(3). pp.416-435.
- Wiedmann, T. and et.al., 2007. Examining the global environmental impact of regional consumption activities—Part 2: Review of input–output models for the assessment of environmental impacts embodied in trade. Ecological economics.