GCSE Business Studies Unit 1 Starting a Business
Description: GCSE Business Studies Unit 1 Starting a Business Marketing: International Business International Business Learning outcomes to be covered: Explain the advantages and disadvantages of international trade to a business Explain how the
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slide1. GCSE Business Studies Unit 1 Starting a Business Marketing: International Business<br>
slide2. International Business Learning outcomes to be covered:
Explain the advantages and disadvantages of international trade to a business
Explain how the marketing mix of a business would be affected by international trade, including:
The product may need to change due to legal and/ or cultural differences
The price may need to change to reflect exchange rate differences and taxes Images © thinkstockphotos.co.uk<br>
slide3. International Business Learning outcomes to be covered:
Describe and explain how promotion may need to change to suit language and or cultural differences
Describe and explain how transport methods and e-business may affect place
Discuss the implications of the global market for business in the local economy
Explain and evaluate the role of the European Union Images © thinkstockphotos.co.uk<br>
slide4. What is International Trade? International Trade – the exchange of goods and services between different countries e.g. Ireland and America
Exports from Northern Ireland include: goods such as machinery and transport equipment, food and live animals, chemicals and related products
Imports include: manufactured
articles, food and live animals,
manufactured goods Images © thinkstockphotos.co.uk<br>
slide5. Activity – 10 minutes Working in small groups draw out a table like the one below. Identify as many advantages and disadvantages of businesses trading internationally. Images © thinkstockphotos.co.uk<br>
slide6. International Trade Advantages
Larger market
Economies of scale
Increase variety of goods and choice
More jobs
Diversification new markets and customers
Development of transport and communications Images © thinkstockphotos.co.uk<br>
slide7. International Trade Disadvantages
Lower profits because a company may have to cut costs due to increased competition
Cost increases due to higher levels of production, staff and transport
Distribution challenges; need to use or find international companies
More detailed documentation to cover international regulations or legislation
Language and cultural differences need to be taken into account
Currency fluctuations impacting on costs and sales Images © thinkstockphotos.co.uk<br>
slide8. Impact of International Trade on Marketing Mix Product
Alterations:
Legal requirements
Technical issues
Consumer tastes Price
Set appropriate to local market
Take account of exchange rate Promotion
Alterations:
Language
Cultural differences Place
Available to target market
Transportation Images © thinkstockphotos.co.uk<br>
slide9. Implications of global markets on the local economy Opportunity to sell on worldwide basis
Increased employment opportunities
Increased investment
Increased competition, similar products in other countries
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 Images © thinkstockphotos.co.uk<br>
slide10. European Union (EU) Activity – 5 minutes
Individually list as many members of the European Union as you can
Share these with the class to make sure you have covered them all. Images © thinkstockphotos.co.uk<br>
slide11. Role of the EU To promote social and economic progress among its members
To set directives for member states
As a single market it allows:
Free movement of goods
Free movement of services
Free movement of people
Free trade, no tariffs or quotas on trade
Common standards Images © thinkstockphotos.co.uk<br>
slide12. Sample Questions Working individually complete the following questions:
Sarah’s Bears plc is a medium-size company which makes bears from recycled material. Customers send in old clothes, table cloths, curtains and these are turned into bears. The company is based just outside Belfast.
Sarah’s reclaimed bears plc is looking to trade on the international market. Give two advantages and two disadvantages of trading internationally for Sarah – 4 marks
Explain the effect of international trade on each element of the marketing mix (product, price, promotion and place) – 8 marks (2 per marketing mix) Images © thinkstockphotos.co.uk<br>
slide13. Learning Check Do you know:
What the advantages and disadvantages of international trade are to a business?
What factors need to be considered when selling and marketing a product internationally?
How exchange rates may influence the price of a product?
How the global economy impacts on businesses locally?
Who the current members of the European Union are? Images © thinkstockphotos.co.uk<br>
slide14. Useful Websites www.bbc.co.uk/education/guides/zgfrd2p/revision
https://en.wikipedia.org/wiki/European_Union
www.bbc.co.uk/guides/zgjwtyc Images © thinkstockphotos.co.uk<br>
slide2. International Business Learning outcomes to be covered:
Explain the advantages and disadvantages of international trade to a business
Explain how the marketing mix of a business would be affected by international trade, including:
The product may need to change due to legal and/ or cultural differences
The price may need to change to reflect exchange rate differences and taxes Images © thinkstockphotos.co.uk<br>
slide3. International Business Learning outcomes to be covered:
Describe and explain how promotion may need to change to suit language and or cultural differences
Describe and explain how transport methods and e-business may affect place
Discuss the implications of the global market for business in the local economy
Explain and evaluate the role of the European Union Images © thinkstockphotos.co.uk<br>
slide4. What is International Trade? International Trade – the exchange of goods and services between different countries e.g. Ireland and America
Exports from Northern Ireland include: goods such as machinery and transport equipment, food and live animals, chemicals and related products
Imports include: manufactured
articles, food and live animals,
manufactured goods Images © thinkstockphotos.co.uk<br>
slide5. Activity – 10 minutes Working in small groups draw out a table like the one below. Identify as many advantages and disadvantages of businesses trading internationally. Images © thinkstockphotos.co.uk<br>
slide6. International Trade Advantages
Larger market
Economies of scale
Increase variety of goods and choice
More jobs
Diversification new markets and customers
Development of transport and communications Images © thinkstockphotos.co.uk<br>
slide7. International Trade Disadvantages
Lower profits because a company may have to cut costs due to increased competition
Cost increases due to higher levels of production, staff and transport
Distribution challenges; need to use or find international companies
More detailed documentation to cover international regulations or legislation
Language and cultural differences need to be taken into account
Currency fluctuations impacting on costs and sales Images © thinkstockphotos.co.uk<br>
slide8. Impact of International Trade on Marketing Mix Product
Alterations:
Legal requirements
Technical issues
Consumer tastes Price
Set appropriate to local market
Take account of exchange rate Promotion
Alterations:
Language
Cultural differences Place
Available to target market
Transportation Images © thinkstockphotos.co.uk<br>
slide9. Implications of global markets on the local economy Opportunity to sell on worldwide basis
Increased employment opportunities
Increased investment
Increased competition, similar products in other countries
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 Images © thinkstockphotos.co.uk<br>
slide10. European Union (EU) Activity – 5 minutes
Individually list as many members of the European Union as you can
Share these with the class to make sure you have covered them all. Images © thinkstockphotos.co.uk<br>
slide11. Role of the EU To promote social and economic progress among its members
To set directives for member states
As a single market it allows:
Free movement of goods
Free movement of services
Free movement of people
Free trade, no tariffs or quotas on trade
Common standards Images © thinkstockphotos.co.uk<br>
slide12. Sample Questions Working individually complete the following questions:
Sarah’s Bears plc is a medium-size company which makes bears from recycled material. Customers send in old clothes, table cloths, curtains and these are turned into bears. The company is based just outside Belfast.
Sarah’s reclaimed bears plc is looking to trade on the international market. Give two advantages and two disadvantages of trading internationally for Sarah – 4 marks
Explain the effect of international trade on each element of the marketing mix (product, price, promotion and place) – 8 marks (2 per marketing mix) Images © thinkstockphotos.co.uk<br>
slide13. Learning Check Do you know:
What the advantages and disadvantages of international trade are to a business?
What factors need to be considered when selling and marketing a product internationally?
How exchange rates may influence the price of a product?
How the global economy impacts on businesses locally?
Who the current members of the European Union are? Images © thinkstockphotos.co.uk<br>
slide14. Useful Websites www.bbc.co.uk/education/guides/zgfrd2p/revision
https://en.wikipedia.org/wiki/European_Union
www.bbc.co.uk/guides/zgjwtyc Images © thinkstockphotos.co.uk<br>