International Trade for UK Business Organisations

Subject: Economics
Pages: 1
Words: 265
Reading time:
< 1 min

International trade has led to the development of the UK economy, the opening up of other markets has led to rapid industrialization followed by advanced transportation bringing the global market into a near reach. We have multinational organizations coming up and their presence is felt heavily across the world. There is increased job creation for the citizens, expansion of markets by exploiting economies of scale, access to new technology bringing industrial specialization that lower production cost and increase revenues. This has boosted the UK productivity, as described in the U.K treasury on trade and global economy website.

The UK economic integration has brought a variety of benefits. Free trade means increased revenues and access to vital goods, establishing a common tariff has lessened the burden of the members. The cooperation has led to improved relations, while the customs union has lowered the price of goods due to common tariffs.

The common market has increased the market size allowing free movement of goods, services, labor, and capital. The created confederation and federation has boosted trade earnings and lowered the price of imports, as explained on the home page of the European community article on economic integration.

The global market is important to UK business organizations as they obtain raw materials easily, increase their market share, import cheaper goods and labor while exporting and importing technology. The market has diversified capital investment with the organization going global to tap more profit. Access to a wider market has resulted in benefits of economies of scale.