Management of International Business Essay Example | Topics and Well Written Essays - 4000 words

focus of International Business - Essay ExampleAfter that David Ricardo formulated the principle of comparative advantage, even in the present day it stands true. Such thoughts and ideologies have influenced a number of companies to undertake global expansion. It has forced G everywherenments of dissimilar countries to formulate an international trade policy. There was an establishment of customs duty, local sales evaluate and diverse other charges were levied on companies taking up international trade. However with the course of time countries understood the grandeur of international trade. There were drastic changes took place in the scenario of international trade, most of the countries also made portentous changes to their existing trade policies. The report will mainly emphasize on the international expansion of a company based on USA. The company chosen for this purpose is Dunkin Donuts and the chosen country of expansion is Australia. In this context, a comprehensive ab breviation of Australian business environs will be carried out. The regional brass section APEC has been chosen and comprehensive analysis of the same will be also done. The study will therefore discuss the foreign market entry rooms and based on the findings, recommendation regarding the most suitable mode will be made. Table of Contents Country analytic thinking 4 PESTEL depth psychology 4 confine analysis 6 Analysis of Regional Organisation 8 APEC A Brief Overview 8 Functions of APEC 9 Important Factors 9 MNE Analysis 10 SWOT Analysis 11 Industry/Sector Analysis 13 Porters Five Forces Model Analysis 13 FMSS/Mode of Entry Analysis and Recommendation 19 References 23 Country Analysis The report highlighted that the chosen company will be Dunkin Donuts, which is based in USA. Now the chosen country of expansion is Australia. The primary rationale behind choosing Australia is that, the MNE, which has been selected for accomplishing the study, does non have their presence in th e markets of USA. Hence a comprehensive analysis of the Australian business environment will be carried out. The analysis of the business environment will include a range of sides that influences the procedure and operation of new venture. Moreover the business will have hardly any control over the factors. Hence the analysis of business environment will include cultural and social influence, regulations, laws, technological stand and also the economic condition. The tools that will be used for the purpose of analysing the country will include PESTEL analysis CAGE analysis. The next half of the project will highlight the PESTEL and CAGE analysis. PESTEL Analysis PESTLE is international environmental analysis tool, which is used for analysing the political, social, technological, economical legal and environmental factors (Henry, 2008, p.51). Political The political factors corresponds to the political constancy of the country where the expansion will be carried out. Hence the facets that will be mainly analysed include giving medication stability, political changes, tax policies, trade restrictions, and tariffs. Now in Australian context, the government of Australia follows a federal system. The tariffs structures and tax policies are well defined. The Australian government is stable to a large extent. Economical The economical aspect will analyse gross domestic product, interest rates, unemployment rates, inflation rate, and growth rate of the Australian economy. The gross domestic product per person is nearly $44,000. The top performing sectors of the country includes Retail,