Friday, October 18, 2019

International Business in UK Essay Example | Topics and Well Written Essays - 2000 words

International Business in UK - Essay Example The major benefit of outsourcing the operations to the European Union nations would be the opportunity to gain a comprehensive understanding of the European culture and market specifics, in addition to lower costs of manufacture and haulage. The European Union is a large potential market for UK based manufacturers. Thus, the strategy of outsourcing of business operations can give certain long-term benefits, though it would involve additional production set-up investments, exposure to translation and economic exposure and foreign exchange risks. However, the strategy can be beneficial particularly in the long run and it would keep the UK based organizations in the forefront in terms of cost competition (Gillespie et al. 2010). Formation of the strategic alliance with a European supplier or distributor would help a UK based manufacturer to gain from the existing network and the market knowledge of the supplier. Furthermore, carrying out of this strategy would require limited resources and investment from the UK based companies. However, the companies would be open to the elements to foreign exchange exposure together with supply chain hazards. The potential costs could be both internal and external in nature. For example, the brand image of the UK based organization and the smooth business operation in the European markets would depend on the new outsource associates of the company, thus revealing it to internal risks (Dicken, 2003, pp. 247-250). The outsourcing of the operations to the European Union countries would enable the UK based company to have access to skilled workers, superior infrastructure, government subsidies and other technological support.  Ã‚  The European market is a huge market and carrying out the production there would give the company cost advantage.  

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