'International Marketing Essay\r'

'UK is wizard of the major(ip) centers for craft and internationalistic business in the world. It is one field that has had to raise its delivery through free ch adenosine monophosphateionship and otherwise business related portfolios. It later certain to principles of liberalization of international swop and investwork forcets in severalise for it to expand and grow especially in the twentieth century. It has been able to attract large enthronizations from multinational countries in sepa compute to catch the require for the larger British population thereby minimizing unemployment crop.\r\nThis paper will indeed examine the investment opportunities and challenges in UK (Office for study Statistics, UK 2006). exotic investments Opportunities The UK has very umpteen opportunities in terms of outside(prenominal) investments. It is one of the fifth largest economies in the world and plump for in the European Union. The domain’s capital, which is London, is c onsidered a haven of investments especially in the financial sector. The field has a GDP of $ 2. 1 trillion and a GDP growth rate of 2 %. (2007 estimates).\r\n well-nigh of the opportunities lie in the service sector (Office for bailiwick Statistics, UK 2006) Industries UK has very some industries that can be invested in by any foreign field and the major ones argon; agriculture, telecommunications, manufacture, fishing and tourism. The UK is one of the leading countries in inelegant exports and this is the main driving force for its economy. (Bailey, 1999) external trade statistics Major exports The dollar mark value for most(prenominal) of the export affair has been improving delinquent to emergence in demand for exports going by new statistics on total exports from the UK.\r\nThe trend however has been free-base to be fluctuating and that it depends on other factors much(prenominal) as; political stability, foreign policies etc. (Office for national Statistics, UK 2 006) The major exports the country has been undertaking are the countrified produce; wheat, rice, maize and tea. In the manufacturing the sector, the country exports agricultural machinery such the tractors and its implements, food, tobacco, paper, printing, textiles, paper and publishing.\r\nIn the service sector, the country has developed high up-tech networks in the telecommunications industry. The leading lodge in this sector is Vodafone and it has also gone world(a) in its service provision. Major trades The major significances that are import to the country embroil automobiles, horticultural produce, tea, coffee, and oil. The dollar value for most of the imports is low as the demand for the products snips in the country. The dollar value increases when oil products pass scarce due to international demand. (Bailey, 1999)\r\nBalance of payments patch According to the Office of field of study statistics, the manufacturing industry accounted for approximately 19% of all the national out throw away in UK last course and also made up to 16% of all the employment in the country. The British economy does not however depend solo on this and it may decline in the adjoining two to three decades. Other industries are flood tide up especially the service sectors with a experience to balance payments situation in regard to treasury bills. (Office for National Statistics, UK 2006) Exchange rates\r\nExchange rates in the UK have been changing since the year 1999 and today, the deputize rates are way below the 0. 54 mark. This can be attributed to the changing events of the decade and orbicularization (Bailey, 1999). The following table shows the changing exchange rates-over the counter- for the greatest pound, Euros and the dollars. Year ? /USD USD/? ?/EUR EUR/? 2005 ? 0. 5500 $1. 821 ? 0. 6842 €1. 463 2006 ? 0. 5426 $1. 859 ? 0. 6815 €1. 467 Source: Office for National Statistics, UK 2006 shift restrictions 1. Embargoes\r\nEmbargoes are political trade tools that are put by work bodies or governments in order to support a justified peace process. cunning embargoes in the UK has been utilise to support either the EU or the UN in order to deny individuals the hazard to purpose money from international trade in buying weapons of mass destruction. This will be used for the purpose of containing retrogressive countries the financial capability to use trading activities for insecurity purposes. Such countries which have been blacklisted by the UK include; Iraq, Iran, Sudan, Zimbabwe etc. (Neid, 1988) 2. Quotas\r\nTradable quotas are policy instruments aimed at restraining trade of certain commodities in the UK. Limiting the employment or importation of non-environmentally friendly automobiles can reduce taking for example greenhouse gases. The UK has been able to meet its environmental objective through the implementation of quotas systems. (Neid, 1988) 3. trade taxes Import taxes are designed to shelter topica l anesthetic industries from international competitors who may be financially stronger than them. This system has been holdd by the UK in order to protect vulnerable sectors of its economy.\r\nAlthough it allows importation of textiles, the country charges high import taxes on all unprocessed hides and skins to protect its local industries. (Lawrence, 2002) 4. Tariffs Trade tariffs are the main hindrance to trading between two countries. These trade tariffs depend with policies hypothecate by individual countries concerning how the countries wish to conduct its trading. The get together Kingdom has however developed a collected and business free environment for most countries in Africa, Asia and the U. S. this has made investment more conducive for many multinational firms. (Neid, 1988) 5.\r\nLicensing Licensing is one of the techniques used to promote international trading. The UK has been able to utilize licensing agreements with other international firms to throw out its tr ading. The country has also been able to license many international firms to operate in the country as a means of encouraging investments. (Lawrence, 2002) 6. usance duties Custom duties are one of the main sources misunderstandings between countries due to the fact that they favor the home-based industries. Custom duties are ordinarily employed by the government top tone down influx of external products into the country.\r\nThe UK has been able to utilize this indemnification effectively especially in sectors which the government feels imperil such as energy, education, transport and manufacturing. (Bailey, 1999) Extend of scotch activity not included in bullion income transactions The extent, to which other economic activities which does not include cash income transactions, is not wide and especially that the economy is entirely dependent on two affection industries. I. e. service and manufacturing. The rest which may not subscribe cash transactions. (Neid, 1988) Counter trades\r\nThe UK has used counter trade strategies to improve their international presence in most all its sectors. Counter trades function effectively when the trading countries agree on issues such as import duties, taxes and tariffs (Bailey, 1999). Labour force The UK repel force shortly stands at 31 million going by 2007 statistics. Majority of this labor force are pure in the private sector and some of them in the public sector. Most of the employees in sectors such as the health sector may have been imported to the country to serve as nurse this has been caused by the worldwide shortage of the same.\r\nThe unemployment rates in UK soon stand at 5. 4 %( 2007 estimates) most of whom are fresh graduates and the poorly educated young men and women in the country. (Office for National Statistics, UK 2006) Inflation rates The ostentation rate for the UK as at 31st December, 2006, was 2. 3% and a poverty rate of 17 % by then. The inflation however, fluctuates depending on the e conomic situation of the country (Office for National Statistics, UK 2006) Developments in experience and engineering science UK is one of the European counties which have invested heavily on revolution and technology.\r\nAlmost all sectors of its economy are deal up with changes in technology. The country is using technology as means of out-competing its competitors in the manufacturing and service sectors. That is why most firms in the country are expend in research and development. The government has been able to utilize 5. 4 % of the GNP on R&D in the last fiscal year ending March 31, 2007. The technological skills of the current labor force in the UK can be rated comfortably depending on which sector one is referring to. With reasonable levels of literacy (79% at the moment), the country’s population can improve.\r\n(Office for National Statistics, UK 2006) Conclusion There is a team of science and technology promoters under the plane section of UK Trade and enthronization whose role is to help firms realize their international potentiality through partnership support and knowledge transfer. It mainly enhances competitiveness of companies trading in the UK and also those concern in international trade. The UK has been able to attract high quality foreign direct investments through this department which offers guidance and direction including available opportunities and marketing.\r\nReferences Bailey, M.(1999): Exchange rate trends and trade performance; Waldwick Archive, Vol 12 Ferguson, N (2004): Empire, The elevation and demise of the British world order and the lessons for global investments. Basic Books, Oxford, p 90 Lawrence H. (2002): Exchange rate between the United States dollar and forty other countries and its effects on investment, Macmillan, Washington. P 34-40 Neid H. (1988): Multinational investment strategies in British Isles, Routlegde, UK. P 122-131 Office for National Statistics (UK 2006): The Official Yearbook of the United Kingdom of striking Britain and Northern Ireland. P 45-57\r\n'