To: Dennis Edman
From: Arslan Daud
Subject: The impact of international factors on The Body Shop
In this part of the assignment, I will talk about how different international factors affect a business that is operating within the UK, and the business that I have chosen to talk about for this assignment is “The Perfume Shop”.
The EU, commonly known as the European Union, was a result of an effort to produce peace amongst nations within a war stricken period of time. Five years after World War 2, France and Germany produced the idea to ensure that the two countries would never go to war again, and any other country who joins the EU would pledge to do the ...view middle of the document...
This will then result in The Perfume Shop increasing the prices of its products and services to its end users in order to cover up the costs of importation. This will also affect the overall amount of money that consumers spend on daily basis. Other chain companies who purchase products and services from The Perfume Shop’s may want to look out for a cheaper supplier, such as they might try to start importing products from China that would cost them less overall. China’s importation is known globally for its cheap and affordable products that a normal person can purchase. If the UK was to leave the EU then it would have an effect on the number of employees that the business can recruit. With The Perfume Shop being an internationally known business, it is good that they have employees working for them from different cultures to ensure diversity within their market. With a reduction in the amount of travellers allowed to working access to the UK means that The Perfume Shop would need to train its staff in areas such as language, cultures which they would have to do if they had a chance to employ someone from a different culture or background. The UK itself won’t have much access to resources such as Coal and Nuclear Energy. If the UK was to leave the EU which would then result in an increase in household bills, such as Gas and Electricity as well as an increase in fuel prices. This would affect The Perfume Shop because it would mean that the average households’ income would be reduced and this would then result in a reduction in their overall sales. This means that the public would be less likely to purchase expensive and branded fragrances and other health and beauty products.
The impact on The Perfume Shop if UK chose to stay within the EU is very important and this would help their business to grow. The business overall has more international opportunities, and a wider range of audiences that they can target their products at. This is due to the fact that being part of the EU exempts the country from tariff rates on imported goods between countries, resulting in a higher opportunity for The Perfume Shop to increase international trades, for free.
It is a process by which the world is becoming increasingly consistent as a result of enormously increased trade and cultural exchange. This has increased the production of goods and services, as the most of the businesses are no longer national businesses but instead they are becoming multinational corporations with subsidiaries in many countries. Globalisation has been taking place for hundreds of years, but has speeded up immensely over the last half-century and has resulted in:
* Increased international trade
* A company operating in more than one country
* Greater dependence on the global economy
* Freer movement of capital, goods, and service
Although globalisation is probably helping to create more wealth in developing countries, but it is not helping to...