Therefore, International trade is vital to the UK economy as it can sustain UK economics’ strengths and regress 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 Auk’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 LIKE, which may benefit the 1.
K economy such as improve the local employment and takes advantage of new technology skills.Task 4. : 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 sis of living standards indicate an increase in demand for goods or services, thus providing opportunities for LIKE business organizations to increase their production, the price will therefore increase and the organizations are making profit for their business in long-term.Political factors – These factors refer to the changes of governments policies. The political factors highly influence how an organization to run their business.
The UK business organizations could make their decision for expanding their business in those emerging markets considerably have a debility political environment. Legal factors – These factors relates to the influence of governments laws and regulations.UK business organizations must strictly follow the laws and regulations to run their business in different markets to avoid any sanctions. It is vital that UK organizations must aware of the changes at anytime in the area of employment law, health and safety regulations and Protection legislation. Social factors – Social factors refer to the consumers behavior or their preferable lifestyles.
If I-J business organizations would like to invest in efferent markets, they must develop different strategies to accommodate for their potential consumers who have different religions, languages, age group, etc. Technological factors – These factors produce great influence as they provide opportunities for UK business organizations to introduce new technology skills and innovations on helping their business to reduce operational costs and develop new ideas for improving the business.Information and data could be obtained easily by the help of the technology applications and this help the I-J business organizations to gain competitive advantage in different lobar markets. Task 4. 3: Evaluate the impact of policies of the European Union on UK business organizations The European Union (EX.) was established and enforced since the Treaty of Rome in 1 958 and since then a number of European countries were joining to become nowadays an economic and political union with a total of 27 members.The EX. is active to carry out different policies in a wide range of topics, from Agriculture and Food, Culture and Education, Business, Economy and Finance, Employment, Health, Environment, etc to protect the Europeans could have benefit from it.
The UK had joined the union in 1973 and below are some examples of the impact on UK business organizations. The EX. has developed a single market framework which allows the free flow of goods between the member countries.
It benefits the production of UK business organizations to become more efficiently allocated to other countries in EX. thus enjoying the economies returns. The EX. coordinates and monitors the national policies and requires its members to invest in education and science development. This policy ensures the ELK business organizations could employ knowledge-based talents, for heir business, to face the competition from new emerging economies.
An external tariff was established against those imports goods outside ELI.This benefits the UK business producers that would not be threatened by the cheaper imports. For example, government charge agricultural import levies for the import commodities, aims to protect its local agriculture industry.
The above examples were inspired by the idea of Protectionism which governments of each EX. country take appropriate actions to restrict the imports, for protecting their local businesses and employment from the overseas competitions.