Significance of Social Factor that Shapes National Business Essay

Significance of Social Factor that Shapes National Business - Essay Example As highlighted by Grimwade (2000), this trade has thrived over the years owing to a number of advantages it has offered various nations across the world. These advantages have significantly benefited a number of UK business organizations. One of the most significant benefits of international trade to UK business organizations is in terms broadening its horizon and markets (EconomyWatch, 2010). If a business organization in the UK was to only sell their goods or services locally without pushing their goods or services to consumers in other nations, the UK would be completely limiting the potential of such business organizations. Such business organizations may more often than not be assured of a steady trade from their UK consumers, but they may not grow to their full capacity if they were trading with seven other nations, for instance. International trade is important to the UK business organizations as it helps the organizations in terms of increasing customer figures and sales. A s ignificant example of a business organization in the UK that has benefited from international trade in terms of broadening its horizon and markets is Marks & Spencer. As a company within the retailing industry, Marks & Spencer has about 155 stores managed under franchise in 28 regions globally due to growth in international trade (Marks & Spencer Company Website, 2012). ... to open themselves up to lowered/reduced production costs, for instance, a business organization in the manufacturing televisions UK may find out that its products could be produced at a substantially less cost in a factory in Japan. This not only helps the business organization save money, but also helps the consumers as the televisions can be sold to them at a cheaper cost. Tesco, a UK supermarket brand and a firm within the retailing industry forms a good example of a company that has benefited from international business. The supermarket opened up about 18 franchise stores outside the UK and has seen it and the franchisees share the cost of opening the stores as well as the subsequent profits, as a result benefiting from reduced cost (Fletcher, 2010). Another significant benefit the UK business organizations accrue from international business is in terms of raw materials (EconomyWatch, 2010). If it was not for international trade, the UK wouldn’t have been able to acquire or get its hand on raw materials needed to make a number of products especially within the food industry. As a colder nation, the UK depends on hotter nations for fruits such as mangoes, and the hotter nations depend on the UK for items such as potatoes. Therefore, without international business/economic integration of trade, the UK business organizations would have had a very scarce choice in terms of raw materials for production. Marks & Spencer as a small user of palm oil relies on palm oil imported from other countries, a benefit it has accrued as a result of expansion in international trade (Marks & Spencer Company Website, 2012). Another significant benefit accrued as a result of the expansion of international trade by the UK business organizations has been in terms of increased global