Unit 6 International Business Environment ATHE Level 7 Assignment Answer UK

Unit 6 International Business Environment ATHE Level 7 Assignment Answer UK

Unit 6 of the ATHE Level 7 course on the International Business Environment course has been designed to provide you with a deep insight into the intricacies of the international business environment and equip you with the knowledge and skills necessary to navigate its complexities. Throughout this unit, we will explore various concepts, theories, and frameworks that are fundamental to understanding how businesses operate on a global scale.

Our journey will begin with an exploration of the fundamental principles that underpin the international business environment. We will delve into the significance of globalization, analyzing its impact on the interconnectedness of economies, cultures, and markets. Additionally, we will examine the role of international institutions and agreements in shaping global business practices and regulations.

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In this section, we will discuss some assignment briefs. These are:

Assignment Brief 1: Be able to analyse the international business environment.

Evaluate business techniques used to analyse the international business environment.

Analyzing the international business environment is crucial for businesses to understand the opportunities and challenges presented by foreign markets. Several business techniques can be employed to effectively analyze the international business environment. Here are some key techniques and their evaluation:

  1. PESTEL Analysis: This technique assesses the political, economic, sociocultural, technological, environmental, and legal factors influencing international markets. It provides a comprehensive overview of the external environment. Evaluation: PESTEL analysis helps identify macro-level factors impacting business operations, allowing organizations to develop strategies aligned with the prevailing conditions.
  2. SWOT Analysis: SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis evaluates a company’s internal strengths and weaknesses, as well as external opportunities and threats. It helps identify competitive advantages and areas for improvement. Evaluation: By understanding their internal capabilities and external market dynamics, businesses can make informed decisions and capitalize on opportunities while minimizing risks.
  3. Market Research: Conducting thorough market research involves collecting and analyzing data on consumer behavior, market trends, competitor analysis, and customer preferences. Evaluation: Effective market research enables businesses to identify target markets, understand customer needs, evaluate market size and growth potential, and develop appropriate marketing strategies.
  4. Competitor Analysis: This technique involves assessing competitors’ strategies, products, pricing, market positioning, and distribution channels. It helps identify competitive advantages and areas for differentiation. Evaluation: Understanding the competitive landscape allows businesses to develop effective strategies, such as pricing strategies, product differentiation, or market segmentation, to gain a competitive edge in international markets.
  5. Risk Analysis: Risk analysis involves identifying and assessing potential risks associated with international business operations, such as political instability, currency fluctuations, legal and regulatory challenges, and cultural barriers. Evaluation: By evaluating risks, businesses can develop contingency plans, implement risk mitigation strategies, and make informed decisions to minimize potential adverse impacts.
  6. Country Evaluation: This technique involves evaluating the economic, political, legal, and cultural factors of specific countries or regions. It helps businesses determine market entry strategies and assess market attractiveness. Evaluation: Country evaluation allows businesses to prioritize markets based on factors like market size, growth potential, infrastructure, political stability, legal framework, and cultural fit.
  7. Scenario Planning: This technique involves developing multiple scenarios to anticipate potential future developments in the international business environment. It helps businesses prepare for various outcomes and adapt their strategies accordingly. Evaluation: Scenario planning enhances strategic decision-making by considering different possibilities, thereby reducing uncertainty and increasing flexibility.

Analyse the micro and macro environment of a specific business organisation which operates on an international level.

To analyze the micro and macro environment of a specific business organization operating on an international level, let’s consider the fictional company “XYZ Corporation,” a global technology firm.

Micro Environment:

  1. Customers: XYZ Corporation’s micro environment includes its diverse customer base worldwide. This consists of individual consumers, businesses, governments, and other organizations that purchase the company’s products and services.
  2. Competitors: The micro environment also comprises competitors operating in the same industry as XYZ Corporation. These could include well-established technology firms, emerging startups, and other global players competing for market share and customer attention.
  3. Suppliers: Suppliers form an integral part of XYZ Corporation’s micro environment. The company relies on various suppliers for components, raw materials, software, and other resources necessary for its operations. The relationships and partnerships with suppliers can impact the company’s ability to deliver products and services.
  4. Distributors: In an international context, XYZ Corporation may work with distributors or channel partners who help in marketing, selling, and distributing its products in different regions. These partners can influence the company’s reach and market penetration in specific countries or regions.
  5. Shareholders: Shareholders, including institutional investors and individual stakeholders, have a significant impact on XYZ Corporation’s micro environment. Their expectations, investment decisions, and influence on corporate governance shape the company’s strategies and decision-making processes.

Macro Environment:

  1. Economic Factors: The global economic environment, including factors such as GDP growth rates, inflation, exchange rates, interest rates, and economic policies, can significantly impact XYZ Corporation’s operations. Economic stability and consumer purchasing power influence demand for the company’s products and services in different markets.
  2. Political and Legal Factors: Political stability, government regulations, trade policies, taxation systems, intellectual property laws, and other legal factors shape XYZ Corporation’s macro environment. Political changes or legal challenges in different countries can impact the company’s international operations and profitability.
  3. Socio-cultural Factors: Social and cultural factors, such as demographic trends, consumer attitudes, lifestyle preferences, and cultural norms, affect XYZ Corporation’s international business. The company must consider these factors to tailor its products and marketing strategies to specific cultural contexts.
  4. Technological Factors: As a technology firm, XYZ Corporation’s macro environment is heavily influenced by technological advancements and innovations. Rapid changes in technology can create opportunities or disruptions for the company, requiring continuous research and development investments to stay competitive.
  5. Environmental Factors: Environmental concerns and sustainability practices have become increasingly important in the global business landscape. XYZ Corporation’s macro environment includes factors related to environmental regulations, climate change, resource conservation, and eco-friendly practices.
  6. Global Market Conditions: The overall global market conditions, including industry trends, market growth rates, and emerging markets, impact XYZ Corporation’s macro environment. Expanding into new markets or facing saturation in mature markets can present both opportunities and challenges for the company.

By considering the micro and macro environment, XYZ Corporation can assess the opportunities and threats it faces, adapt its strategies, and make informed decisions to navigate the complex international business landscape.

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Assignment Brief 2: Understand the impact of globalisation and international trade.

Assess the impact of globalisation and international trade on national economies.

Globalization and international trade have had a significant impact on national economies across the world. While the effects can vary depending on the specific circumstances of each country, the overall impact of globalization and international trade has been both positive and negative. Here are some key aspects to consider when assessing their impact:

  1. Economic Growth: Globalization and international trade have contributed to overall economic growth in many countries. By promoting the exchange of goods, services, and investments across borders, countries can benefit from increased market access, economies of scale, and specialization. This can lead to higher productivity, job creation, and increased income levels.
  2. Market Expansion: International trade allows countries to access larger markets beyond their borders. This expansion of market opportunities can lead to increased sales, diversification of export destinations, and greater competitiveness. It provides domestic firms with access to a wider range of customers, boosting their growth and profitability.
  3. Comparative Advantage: Globalization enables countries to specialize in producing goods and services in which they have a comparative advantage. This means that countries can focus on producing goods and services that they can produce more efficiently or at a lower cost compared to other nations. Specialization leads to efficiency gains, increased productivity, and improved competitiveness, benefiting national economies.
  4. Technology and Innovation: Globalization facilitates the spread of technology and knowledge across borders. Increased international trade often leads to the transfer of advanced technologies, ideas, and innovation from developed to developing countries. This transfer can accelerate technological advancements, improve production processes, and stimulate domestic innovation and entrepreneurship.
  5. Employment and Labor Market Effects: While international trade can create new employment opportunities, it can also lead to job displacement and labor market disruptions. Industries that face competition from imports may experience job losses as they struggle to compete with lower-cost foreign producers. However, it is important to note that trade-related job losses are often offset by job gains in other sectors and through increased productivity.
  6. Income Inequality: Globalization and international trade can contribute to income inequality within countries. Certain sectors or regions may benefit more than others from trade liberalization, leading to income disparities. Additionally, globalization can increase competition for low-skilled jobs, which may put downward pressure on wages for some workers. Policies to address income inequality and provide support for affected workers are essential for inclusive growth.
  7. Vulnerability to External Shocks: Increased economic interdependence through globalization can make national economies more vulnerable to external shocks. Economic crises, financial volatility, or disruptions in global supply chains can quickly spread across borders, affecting national economies. It highlights the need for countries to build resilience and diversify their economic activities.
  8. Environmental Impact: Globalization and international trade have implications for the environment. Increased trade can lead to greater resource consumption, carbon emissions from transportation, and environmental degradation if not properly managed. Balancing economic growth with sustainable development and environmental protection is crucial for long-term well-being.

Assess the benefits, opportunities and challenges of globalisation and international trade for a specific business organisation.


Globalisation and international trade offer numerous benefits, opportunities, and challenges for business organizations. Let’s examine them in the context of a specific company, XYZ Corporation, to understand how they can impact its operations.


  1. Market Expansion: Globalisation enables XYZ Corporation to access new and larger markets across the globe. It can expand its customer base and potentially increase sales and profits.
  2. Economies of Scale: By operating on a global scale, XYZ Corporation can achieve economies of scale in production, procurement, and distribution. This can lead to cost efficiencies, lower production costs, and increased competitiveness.
  3. Access to Resources: International trade allows XYZ Corporation to access resources, such as raw materials, skilled labor, and technologies, that may not be available or cost-effective domestically. This can enhance the company’s capabilities and improve its product quality.
  4. Diversification: Globalisation enables XYZ Corporation to diversify its operations across multiple countries, reducing its exposure to risks associated with specific markets or regions. This can provide stability and resilience to the business.
  5. Learning and Innovation: Engaging in international trade exposes XYZ Corporation to new ideas, technologies, and business practices from different cultures and markets. This fosters learning, innovation, and the development of competitive advantages.


  1. Market Access: Globalisation allows XYZ Corporation to penetrate new markets and reach customers worldwide. It can identify emerging markets with high growth potential and strategically enter those markets.
  2. Partnerships and Collaborations: International trade opens up opportunities for XYZ Corporation to establish strategic partnerships, joint ventures, and collaborations with foreign companies. This can facilitate knowledge sharing, technology transfer, and access to new distribution channels.
  3. Competitive Advantage: Through globalisation, XYZ Corporation can leverage its unique products, brand, or expertise in international markets, gaining a competitive advantage over local competitors and expanding its market share.
  4. Talent Acquisition: International trade provides XYZ Corporation with access to a larger pool of talent globally. The company can recruit skilled professionals from different countries, fostering a diverse and innovative workforce.


  1. Trade Barriers and Regulations: Globalisation involves navigating complex trade barriers, tariffs, customs regulations, and legal frameworks in different countries. XYZ Corporation needs to comply with diverse regulatory environments, which may increase costs and pose administrative challenges.
  2. Cultural and Language Differences: Operating globally requires XYZ Corporation to navigate cultural nuances, language barriers, and diverse business practices. This may require adapting marketing strategies, communication styles, and operational processes to different cultural contexts.
  3. Political and Economic Risks: Globalisation exposes XYZ Corporation to political instability, economic fluctuations, and policy changes in different countries. Changes in trade policies, currency exchange rates, or government regulations can impact the company’s profitability and operations.
  4. Supply Chain Complexity: Engaging in international trade involves managing complex global supply chains. XYZ Corporation needs to ensure efficient logistics, reliable suppliers, and mitigate risks associated with transportation, customs delays, and disruptions in distant markets.

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Assignment Brief 3: Understand the international markets in which businesses operate.

Analyse the implications for businesses of the cultural and regulatory diversity in international markets.

The cultural and regulatory diversity in international markets poses both challenges and opportunities for businesses. Let’s analyze the implications of these factors in more detail:

Cultural Implications:

  1. Cultural diversity refers to differences in beliefs, values, customs, languages, and social norms across different countries and regions. This diversity can have significant implications for businesses operating internationally:
    a. Consumer Behavior: Cultural differences influence consumer preferences, purchasing habits, and decision-making processes. Businesses need to understand the cultural nuances of their target markets to effectively tailor their products, services, marketing strategies, and communication to resonate with local consumers.
    b. Branding and Messaging: Businesses must adapt their branding and messaging to align with cultural norms and values in different markets. What works well in one country may not necessarily work in another. This requires careful consideration of language, symbolism, imagery, and messaging to avoid misunderstandings or unintended offense.
    c. Product Localization: Cultural diversity often necessitates product localization to suit local tastes, preferences, and regulatory requirements. This may involve modifying product features, packaging, sizes, flavors, or even creating entirely new products to cater to specific cultural needs.

Regulatory Implications:

  1. Regulatory diversity refers to variations in laws, regulations, and government policies across different countries. These regulatory variations can significantly impact businesses operating in international markets:
    a. Compliance and Legal Challenges: Each country has its own set of regulations and compliance requirements that businesses must adhere to. This includes legal frameworks for intellectual property, product safety standards, labeling requirements, data privacy, employment laws, taxation, and more. Navigating and complying with these diverse regulations can be complex and costly for businesses.
    b. Market Access and Entry Barriers: Regulatory diversity can create barriers to market entry for businesses. Some countries impose strict regulations, licensing requirements, or trade barriers that can limit access to certain markets. Understanding and complying with these regulations becomes crucial for businesses to successfully enter and operate in international markets.
    c. Competitive Landscape: Regulatory diversity can create variations in the competitive landscape. Different regulations may favor local businesses or create advantages for certain industries or business models. Businesses need to assess regulatory environments to determine the feasibility of entering a market and to develop strategies to compete effectively.
    d. Intellectual Property Protection: Intellectual property rights and enforcement vary across countries. This poses challenges for businesses seeking to protect their trademarks, patents, copyrights, and trade secrets. They must navigate different legal systems and understand the level of intellectual property protection in each market.

Evaluate the potential conflicts between corporate strategy and ethical, social and sustainable responsibilities.

Conflicts can arise between corporate strategy and ethical, social, and sustainable responsibilities due to differences in priorities, goals, and values. Here are some potential areas of conflict:

  1. Profit Maximization vs. Ethical Considerations: Corporate strategies often prioritize profit maximization and shareholder value. However, ethical responsibilities may require companies to make decisions that reduce short-term profitability in order to uphold moral principles, such as avoiding exploitative practices or harmful environmental impacts.
  2. Short-Term vs. Long-Term Thinking: Corporate strategies may focus on achieving immediate financial gains, sometimes at the expense of long-term sustainability. Ethical and social responsibilities, on the other hand, emphasize the need to consider the long-term impact of business activities on stakeholders, communities, and the environment.
  3. Transparency and Accountability: Corporate strategies may prioritize protecting proprietary information or maintaining confidentiality, which can conflict with the need for transparency and accountability to stakeholders. Ethical responsibilities often require companies to be open and honest about their practices, impacts, and risks.
  4. Stakeholder Management: Corporate strategies may prioritize the interests of shareholders or specific stakeholders, neglecting the broader social and environmental impacts. Ethical responsibilities demand a more inclusive approach, considering the needs and concerns of all stakeholders, including employees, customers, local communities, and the environment.
  5. Supply Chain and Labor Practices: Corporate strategies that prioritize cost efficiency may lead to conflicts with ethical responsibilities related to fair labor practices, human rights, and environmental sustainability throughout the supply chain. Balancing these responsibilities often requires additional investments, such as improving working conditions or sourcing sustainable materials.
  6. Marketing and Advertising: Corporate strategies might involve aggressive marketing tactics or misleading advertising practices to gain a competitive edge. Such strategies can conflict with ethical responsibilities to provide accurate information, avoid deception, and protect consumers’ interests.
  7. Impact on Local Communities: Corporate strategies that prioritize expansion or cost-cutting measures may overlook the social and economic consequences for local communities. Ethical and social responsibilities require companies to consider the potential negative impacts on communities, such as job losses, cultural erosion, or environmental degradation.

To mitigate these conflicts, companies can adopt a responsible and sustainable approach to their strategies. This involves integrating ethical, social, and sustainable considerations into decision-making processes, setting clear guidelines and standards, engaging with stakeholders, and measuring and reporting on their performance in these areas. By aligning corporate strategy with ethical, social, and sustainable responsibilities, companies can create long-term value while positively impacting society and the environment.

Assess the importance of corporate social responsibility and sustainability in supporting business success.

Corporate social responsibility (CSR) and sustainability have become increasingly important for businesses in recent years. Beyond simply being a moral obligation, CSR and sustainability efforts have proven to be significant drivers of business success. Let’s explore the key reasons why they are crucial for supporting business success:

  1. Enhancing Reputation and Brand Image: Consumers are becoming more socially and environmentally conscious, and they actively seek out companies that align with their values. Embracing CSR and sustainability initiatives can help businesses build a positive reputation and strong brand image, leading to increased customer loyalty, trust, and a competitive edge in the market.
  2. Attracting and Retaining Talent: The current workforce, particularly millennials and Gen Z, prioritize working for companies that demonstrate a commitment to making a positive impact on society and the environment. By incorporating CSR and sustainability practices, businesses can attract top talent, enhance employee satisfaction, and reduce turnover rates, ultimately boosting productivity and innovation.
  3. Strengthening Stakeholder Relationships: CSR and sustainability efforts contribute to building trust and fostering positive relationships with various stakeholders, including employees, customers, investors, suppliers, and local communities. Engaging in responsible business practices helps create a sense of shared values and purpose, leading to increased collaboration, support, and long-term partnerships.
  4. Mitigating Risks and Building Resilience: Environmental, social, and governance (ESG) factors have a direct impact on a company’s financial performance and long-term viability. Integrating sustainable practices can help mitigate risks associated with climate change, resource scarcity, regulatory compliance, and reputational damage. By identifying and addressing these risks proactively, businesses can build resilience and adapt to changing market dynamics.
  5. Cost Reduction and Efficiency: Implementing sustainability initiatives often leads to operational efficiencies and cost savings. For example, adopting energy-efficient technologies, reducing waste, and optimizing supply chains can result in lower utility bills, improved resource management, and streamlined processes. These efforts contribute to improved financial performance and profitability in the long run.
  6. Access to New Markets and Opportunities: CSR and sustainability practices can open doors to new market segments and business opportunities. As governments and consumers demand more sustainable products and services, businesses that meet these expectations gain a competitive advantage. Additionally, embracing innovation and developing sustainable solutions can lead to the creation of new revenue streams and market differentiation.
  7. Regulatory Compliance and Future-proofing: Governments worldwide are tightening regulations related to environmental protection, labor standards, and ethical business practices. By proactively adopting CSR and sustainability measures, businesses can stay ahead of evolving regulations, avoid legal issues, and demonstrate a commitment to responsible conduct. This future-proofs the organization by ensuring long-term viability and minimizing the risk of disruptive changes.

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