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Impact of Globalization of MacDonald and KFC

University: Kensington College of business London

  • Unit No: 5
  • Level: Diploma
  • Pages: 6 / Words 1503
  • Paper Type: Assignment
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  • Downloads: 853
Organization Selected : MacDonald and KFC


International business is all about doing business of products and services at the global level. This report will cover the impact of globalization.

The barrier for two contrasting businesses which are doing business internationally. Furthermore, it will tell about the support is available for the contrasting business that are doing the operations internationally. It will study the trading bloc in international trade. It will discuss more features of globalization with the basis of MacDonald and KFC. The finance will be from which sources in this type of trade. It will explain the two businesses operating in contrasting markets.

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D1 Impact of globalisation on the business

Globalisation means working and interacting with people, companies worldwide. It is doing trade out of the country. It can be negative as well as positive. Both impacts are important for the business (di Giovanni and et.al., 2018).

Positive Impact

  • Competition- globalisation is maximising the competition. It may related to the product, price, target market, technological changes. If KFC is doing any change In process then it makes the working easier. When its products are producing at less cost than chances of grabbing the market share are more. After increase in competition the companies has improved in the standards with benefit ting the consumer (Beugelsdijk, Kostova and Roth, 2017).
  • Rise in technology- launching of the new technology due to globalisation only. In competition one thing matters that makes the work easier. Better the use of technology will give the suitable result. From this firm move a head from the competitors (Delios, 2017). Through this our growth in sense of the quality. Less time in looking after the machines. Many organisations are large and for their working they need the more advanced machines. By using the quality machines the output will be more.
  • Employment- due to this the number of jobs has increased. There is requirement of the more people to work. Many opportunities are there like outsourcing, software support, marketing, accounting etc. In different countries the jobs are there for people but skilled persons are needed. In developing countries the chances are more (International business, 2018).

Negative impact

  • Fluctuation in prices- due to globalisation the prices are fluctuating. Product s are sold in lower prices due to competition. Countries like china is selling the product at low prices and that's why there are many firms which are forced to follow that. But the advantage is more customer are attracted to the company. Many entities which are not which are stand in situation fail from the market. By this they are covering the whole market. It is the duty of the to built the position in market so that in any circumstances they can survive. Low price product reach the mass audience (di Giovanni and et.al., 2018). From these chances are more increase the more recognisable firm in the market. Mostly prices are hike at the time of inflation. All things became expensive that time. There are many entities try to reduce the cost of the firm. The sales are more affected in this.
  • High employee turnover because of job security- there is always the risk of jobs insecurity. Many a time the market situation are not good. In that case employees are out from the organisation (Delios, 2017). Many skilled person seek job in foreign countries. Persons are more in outside the countries and this creates the less job in developing countries. In countries like India manufacturing of the product at lower rate (International business, 2018).

M2 barriers of two contrasting business who are operating internationally

Obstacles are more when doing business internationally. These are:

  • Legal issues– when the KFC is doing the business in another country, laws must be aware by the company. Additional taxes can also be charged in the country. There are many things which has to take care of that like if systematic and proper advice is not followed than penalties and fines are also charged(di Giovanni, and et.al.2018).
  • Language issues– business is done in another country then its languages must be know. Otherwise, the country has to face the problem of translators.
  • Cultural barriers– there are many countries which have different culture, many a times due to cultural differences make the things worse.
  • Political problems- many business person don't have faith in the international business then it can cause lost of customers. Stability of political condition must be checked before establishing the business.

M1 analysing the support that is available in different international business

There are many benefits which are doing the business internationally. Support of the government. Generally the company's helping hand by the government. Relaxation in the taxes, financial help, flexibility in rules, import duties are reduced(Delios, A., 2017). Where the new business is launched, in that case government also help the country by providing the space for firm. For recognition local community has accepted. The organisation firstly has to popularise the product and for that spending of the excessive money can be there. The local investors are also helping the entity in making the business fully established.

Read also:
The Impact of Digital Technology on Tesco

P4 exploring the trading blocs on international trade

Trading blocs means it is the type of intergovernmental agreement. In this regional obstacles is eliminated from the participating states. The role of trading blocs are economic integration which makes the different economies to work in the integrated manner. It also helps in moving of the material from the one country to another by relaxing the tariff barriers and non tariff barriers. This support the country in full utilisation of resources because no country is has full natural resources. The easily transfer of resources make the trade increase. There are many employment opportunities which are generated through this.

P3 explaining the main features of the globalisation that effect the two contrasting business

The globalisation helps the societies in making the interlinked. When they are interconnected then only they are making more business to reach at global level. It supports in making the production at global reach. Globalisation affects the business by creating a global culture(Beugelsdijk, S., Kostova, T. and Roth, K., 2017). In this all the products are sold in international market. Through this introduction of new technology is made which makes the work easier. In which country the globalisation has accepted, the development is made at global level. Employment opportunities are increased. In this all type of people are working together which shows integrity.

Explaining different types of finances available for international business

There are different types of finances from which the business is running. Some of them are debt finance from which the borrowed amount is used by the business. In large business the various options of funds are available. Banks also provide loans for this type of the business. Equity finance can be the one way through which the firm can get money to earn business. There are many things like debentures ,assets, investors who are ready to invest ib the business.

explainig the two business operate in the contrasting international market

There are two business one where the economies is stable and where business can grow but there are which the economy which is not so good to do operating business(di Giovanni, and et.al.2018.). In growing economies the business can be more successful but in the unstable economies the chances of losing are more. Need Assignment Help Online in Canada? We provide assignment writing services from top programming assignment experts.


From this report it is concluded that all there are different sources of fund which are needed to source international business. The business are operating in the two contrasting market. Feature of globalisation are discussed. Trade blocs in international trade. The impact of globalisation on the business. Barriers of operating in international business.


  • di Giovanni, and et.al.2018. The micro origins of international business-cycle comovement.American Economic Review. 108(1). pp.82-108.
  • Beugelsdijk, S., Kostova, T. and Roth, K., 2017. An overview of Hofstede-inspired country-level culture research in international business since 2006. Journal of International Business Studies. 48(1). pp.30-47.
  • Delios, A., 2017. The death and rebirth (?) of international business research. Journal of Management Studies. 54(3). pp.391-397.
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