An International Business Undertakes Activities

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In this part of Unit 39, I will be explaining the different economies in which an international business undertakes activities. The business I will be focusing on throughout my essay is Barr’s. I will also be scrutinising the economies of two countries – Germany and the UK. The economic aspects I will look at into further detail are: GDP, GDP per capita, exchange rates, trade blocs they are currently a member of, unemployment rates, life expectancy and balance of trade. An international business is when a business makes transactions with other businesses in different countries. These transactions can consist of investments, sales and transportation. An example of an international business is Barr’s as they operate in many countries around…show more content…
Their goods comprises of a lot of varieties such as machinery, vehicles, technology, food, materials etc. Over the years, their GDP has rapidly increased as they started $215 billion in 1970, making their way to $946 billion in 1980, then going into the trillion figures with $1.77 trillion in 1990. This then increased to $1.95 trillion in 2000, and they ultimately had a rate of $3.41 trillion in 2010. In contrast, the UK had a lower GDP than Germany in 2014 which is evident through the fact that the graph illustrates the country having a rate of $2.94 trillion. While this is still a great figure, their goods have lower value than that of Germany. The UK has always been below Germany in terms of GDP since they started out with $130.67 billion in 1970, which then went up to $564.95 billion in 1980. In the year 1990, they had a GDP of $1.09 trillion and this increased to $1.55 trillion in 2000, which then went up to $2.41 trillion over the next decade. To summarise, Germany currently has a higher GDP than the UK and this emphasises that there are more commercial practices within the country. The business that operates in Germany has more trading partners than their operating business in the UK. This could result in potential growth opportunities for the business. It also emphasises that they have better quality goods than the UK. Expensive resources and raw materials
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