International Trade

International trade is the exchange of goods and services between countries.

This type of trade gives rise to a world economy, in which prices, or supply and
demand, affect and are affected by global events.
(http://www.investopedia.com-16th Nov)

Importance of International Trade and Services

Enhances the domestic competitiveness

Takes advantage of international trade technology

Increase sales and profits

Extend sales potential of the existing products

Maintain cost competitiveness in your domestic market

Restrictions of international Trade

Though many theories proclaim to have free international trade globally, this isnt true as now also
several countries have restrictions which determine the market. The restriction of international
trade is imposed by government itself. If two or more nations repeatedly use trade barriers against
each other, then a trade war results.
The most common reason of international barriers is to protect their on domestic
producers by restricting international trade. There are different forms of international trade
barriers such as:

Tariffs
Non-tariff barriers to trade
Import licenses
Export licenses
Import quotas
Subsidies
Voluntary Export Restraints
Local content requirements
Embargo
Currency devaluation
Trade restriction
(https://www.boundless.com/nov17)

European Union

European Union is a pool of 28 counties after Second World War for an economic cooperation beyond
international barriers; this made a common market place for these countries. There are some policies
put forward by EU in various filed by the member countries: some of these are:Environmental policy, Economic policy and competition, Enterprise policy, energy policy and Social rights.
Environmental Policy:The EU has passed extensive legislation with the intention of protecting and preserving a safe and
healthy environment for citizens of Europe. The EU has issued a wide range of policies to fulfill this goal,
these policies some of them are:Air pollution has increased drastically in Europe in last 20 years and so increase in asthma patients and
pre mature deaths. This is regulated through Clean Air Europe program; EU forecast to reduce of
emission of CO2 by mere 10% by 2020 which would also save a huge amount of 27 billion Euros per year
Protection against dangerous chemicals with initiative of REACH (Regulations, Evaluation,
Authorization and restrictions of Chemicals) REACH main focus is on human health and the environment
by implying more responsibility on industries.
Economic policy and Competition:EU maintains competition through their anti-trust and Fraud (OLAF) brought in through article 101 and
102 of the treat of the European Union.
Enterprise policy:The enterprise policy is mainly focused on financing small and medium enterprises (SMEs) help. EU has
provided guarantee for 360000 small firms since 1998
Energy policy:There are 2 aspects of this policy first is the efficient performance of the internal energy market
Second is EU insurance the supply of energy and natural resources at relatively low prices. EU regulates
this through Intelligent Energy program
Social Rights:This policy regulates equal opportunity between men and women, color and people with disabilities and
so ensures sexual safety, financial and economic sufficiency, negotiation and fairness, honesty and
accountability connections with others, trust and support, non threatening behavior.

EU policy of Dell
Following are few initiatives which Dell has taken to follow EU policies:Dell aspires to be a company where environmental betterment is as important as their other goals.

Reduced gas emissions

Dell has reduced greenhouse gas emissions from their facilities and logistics operations by a
combined 8 percent. This represents a 10 percent decrease in our operational emissions and a 7
percent reduction in their upstream transportation and distribution emissions.

Deliver environmentally responsible products and services

As a part of this Dell has started to produce recyclable products and packaging and so dell was
one among the few companies to stop exporting e-waste to developing countries.

Prevent waste and pollution

Operate dells facilities to conserve resources and so spreading awareness as a part of this dell
holds an annual meeting among stake holders

Social policy of Dell

Dell is focused on the guideline of equivalent employment opportunity for all workers and to giving
representatives a workplace free of separation and provocation. All employment choices at Dell are
focused around business needs, work prerequisites and individual capabilities, without respect race,
color, religion or belief, national, social or ethnic origin, sex (including pregnancy), age, physical, mental
or sensory disability, HIV status, sexual orientation, gender identity and/or expression, marital, civil
union or domestic partnership status, past or present military service, family medical history or genetic
information, family or parental status, or any other status protected by the laws or regulations in the
locations where they operate
P.E.S.T.E.L Analysis
Political Factors
Political factors include governmental and political decisions and to what degree these have impact on
our business. For example:

Tax policy
Employment laws
Political stability

Economic Factors:Economic factors refer to employment/unemployment rate, boom and recession in the economy where
the organization is functioning in, inflation and deflation rate. So, decision making of a business is mainly
based on these factors
Social/ cultural factors:Social factors are about the society and the culture surrounded by the company. Such as lifestyle trends,
ethnic/religious facts, social classes, minorities and family size and structure. for instance, increase of
the sales during festival seasons.
Technology Factors:This refers to the rate of new innovations, development in the sector, research fund,
information/communication and invention potential and so. Those factors can have a positive/negative
impact on our company. Nokia could be an example for this, how their market share fell because of
outdated products and got out of the game for a while.
Environmental Factors:This consists of those factors that might affect the company environmentally, such as changes in the
climate, impact of company over nature like emission of toxic gases into atmosphere ,sustainability,
environmental regulations ,ecological regulations and so.
Legal factors:Legal factors relates to law and regulations bodies which has impact on the business. For example
consumer protection laws, regulatory body etc.

P.E.S.T.E.L of Dell

Political factors:Dell inc. has to face certain restraints, while business. For example , corporate tax rate
estimated by the countrys industrial Development agency at 39.5 % in the US

Economic factors- The inflation rates and the financial crisis are the economic factors that affect
Cadbury.
Social factors- This includes the society or the people, their style and different cultures, income,
also affect Cadbury.
Technological factors- Cadbury uses web marketing to know about the product broad band and
robotic devices helps the production easier.
Environmental factors- Cadbury use wrappers that are recyclable so that could not affect the
environment.
Legal factors- Nowadays people prefer richer milk chocolates, so this factor also affects
Cadbury.