Understand the international business envorimenttext text (Economic value…
Understand the international business envorimenttext text
Economic value of international trade (to individual businesses, to the economy)
international trade is very important because one country cannot produce all products they need. the Netherlands are importing tomatoes, strawberries and other food and clothes from other countries. this is also not good for the economy, because if there is no international trade, the economy will not grow.
The Netherlands import all kind of products from other countries all around the world. Products, services or capital assest from an other country that are used in the Netherlands, that is import.
The Netherlands produce potatos and tulips to other countries, this is export.
Balance of trade
A balance of trade is the import and export of a countrt. I think that we have a good balance in the Netherlands, we import a lot, but we have also a lot of tourists.
Balance of payments
This is like balance of trade but now in finance. The Netherlands have a lot of toursist that brings money to here, they spend a lot and pay a lot of taxes, so I think that the Balance of payments have a good finance balance. If the Netherlands import some things, they make sure that they can buy it for a good cheap price. If the Netherlands sell some goods, this will be more expensive.
Value of world trade
The Netherland works with a lot of international companies, this is why The Netherlands have power to infleunce of trade.
Trends (international trade)
A trend that the whole world takes over, as example a plane, before the plane, people were using the car.
International companies that export things all around the world.
Companies that give products and services all around the world.
If more companies sell the same things for different prices and quality. A lot of companies has competition and this can have infleunce of the finance.
Economies of scale
For P1, learners will need to consider the importance of international business to a selected organisation and to the economy. They will need to look at data on the value and volume of activity together with recent trends in activity. National data needs to be considered together with evidence of the significance of international activity for specific organisations. Both import and export information needs to be explored as different international business are involved with both of these activities.
For P2, the factors that encourage and/or restrict international trade need to be reviewed. A variety of mechanisms exist. For example membership of the EU alongside non-membership of European Monetary Union, could be considered in relation to the international business environment.