Unit 39 P4

Decent Essays
P4 describe how the monetary environment affectsA business that operate internationally. | An exchange rate is the price for which one currency is worth converted into another rate. The exchange rate is determined by the supply and demand conditions of relevant currencies in the market transaction of currency exchanges occur in the foreign exchange markets. For example, currently, the £1 is worth $1.67 which means that at this stage, the pound is stronger than the dollar. Businesses should ensure that they frequently check the exchange rates to see if any changes to their prices need to be made or if the exchange rate benefits them. If Iron Bru were to export a large amount of products to a country such as Germany or Poland, there will…show more content…
Are there any differences? Give some examples. (Analysis)Shops in the UK and shops in Germany are very different. There are certain aspect of advertising and selling which they may disagree on.
The difference between shops in the UK and shops in Germany is mainly the formality of the actual shop and how businesses sell and advertise their products. Businesses in Germany mainly advertise their products using magazines, newspaper and billboards. German businesses are not known to sell products online which mean their physical shops are far bigger than the shops in the UK. However, in the UK, things are the opposite. UK businesses sell products online and in physical shops, which is referred to as ‘Clicks and bricks’. UK businesses advertise their products mostly on Television, internet ads and on Local transport e.g. Buses and Trains. | When selling abroad to another country, there are many barriers. One of which being the fact that selling goods in a foreign country means the commission rates and standard charges will be different. Also, there are certain tariffs set in different varieties of countries. This means that the business may need to pay a fixed amount of money in order to export goods into a different country. Selling abroad also means that the country which you’re exporting to may not speak the same language as the company’s origins. This means that the company need to ensure that they change the language on the advertising banner in
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