Globalisation

Globalization is the movement of domestic and national markets to an international level. The factors leading to globalization is the advancement in communication which has had huge benefits for the people. Quicker travelling methods and reduction in barriers to enter new places.

It has a lot of advantages like if Nike opens it factory in Pakistan it would benefit immensely all of the raw materials being there.There will be cheap labour while a huge capital will be invested for Pakistan which will be very good for their economy.

It has disadvantages to like it is a big threat for small businesses as bigger companies may effect from economies of scale taking place. One of its biggest disadvantages is that if a country faces recession the effect is faced by the other countries to. Globalization can also cause instability within a country as well as technological poverty.

 

                                                   

                                                 International Trade

From the past hundreds of years trading is taking place internationally just with a little bit of difference people had to travel on animals where communication was very limited. International trade could take place through many ways out of which the first one could be outsourcing and the other is importing and exporting out of which this is all part of international trade.

With international trade the PESTLE tool can also be used for trading internationally. The political factor is very important over here. For any country for international trade to take place it is gonna be very difficult to take place in a place where there is a lot of corruption.Economic factors is also very important over here, like for Pakistan we have good quality fruits so selling in places where there is no access to good quality fruits sell the fruits over there. The culture should also be looked upon which is very important. You just can not sell anyone that is against their interests. There is technological and environmental where it is mostly about natural resources.

So PESTLE helps us finding the external factors that might effect the organisation as a whole.