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

International Business in UK - Essay ExampleThe major benefit of outsourcing the operations to the European Union nations would be the opportunity to gain a comprehensive understanding of the European enculturation and market specifics, in addition to lower costs of manufacture and haulage. The European Union is a enormous potential market for UK found manufacturers. Thus, the strategy of outsourcing of trading operations can give certain long-run benefits, though it would involve additional occupation set-up investments, exposure to translation and economic exposure and foreign change 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 animate network and the market knowledge of the supplier. Furthermore, carryin g 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 midland 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, choice infrastructure, government subsidies and other technological support.The European market is a huge market and carrying out the production there would give the company cost advantage.