The international business performs the sale and purchase of goods and services from other countries. International trade can be carried out by businesses and governments (Wagner, 2019). The essence of international commerce is to reach an extensive market which increases productivity. UK businesses need to trade with companies from other countries whether it is in the importation or export of products. Many global factors affect UK’s business; using the PESTEL analysis, these are political, economic, social, technological, ecological, and legal.
International trade results in capital accumulation in the UK economy and provides technical progress that eventually explains increased productivity. Economies will constantly improve, but the question is always about the rate of increase. There has been a change in the economic growth rate from low to rapid (Wagner, 2019). World politics can affect businesses in the UK regarding stability, media freedom, terrorism threat, and intellectual property disputes. Environmental factors that affect UK markets include globalization, economic crises, fluctuations in the stock market, the effect of WTO and the World Bank, and the outsourcing phenomenon (Fosher, 2018). Social factors that affect UK businesses include changes in family patterns and values, immigration, increased mobility between social classes, and the issue of minorities.
International technological factors that influence UK businesses include the global infrastructure level, technological inventions, and the emergence of communication technologies. Universal ecological factors that concern includes global warming, pollution, increased sensitivity to green solutions, and activities of global environmental organizations. Finally, international legal issues that affect UK businesses include data protection laws and regulations and international employment and safety legislation changes (Fosher, 2018). These factors affect businesses in terms of compliance with global requirements.
References
Bryant, K. T. (2021). How will Brexit affect businesses? 14 things you need to know. Sage Advice United Kingdom. Web.
Fosher, H. (2018). Understanding the marketing and management of trails using PESTEL analysis (Publication No. 10815151) [Master’s thesis, University of New Hampshire]. ProQuest Dissertations Publishing.
Wagner, J. (2019). Effect of international activity on firm performance. IZA World of Labor, 47 (2), 1-12. Web.