Unit 38 Business P5

To: Dennis Edman
From: Arslan Daud
Subject: The impact of international factors on The Body Shop
Date: 06/15/2016
In this part of the assignment, I will talk about how different international factors affect a business that is operating within the UK, and the business that I have chosen to talk about for this assignment is “The Perfume Shop”.
The EU, commonly known as the European Union, was a result of an effort to produce peace amongst nations within a war stricken period of time. Five years after World War 2, France and Germany produced the idea to ensure that the two countries would never go to war again, and any other country who joins the EU would pledge to do the same. Up until now there are 28 different members of state within the EU including: The Great Britain, Austria, Greece, Spain, Italy, Sweden and Czech Republic. There are four key institutions which work together to run the EU – The European Commission, The European Parliament, The European Council and The European Court of Justice are all working together and ensuring that there is peace withheld within the European Union states. The good thing about the EU is that it doesn’t only maintain harmony but it allows for easier trade between countries to occur as well as the opportunity to exchange and preserve resources. It is also much easier for an individual to travel and move between countries within the EU compared to those who are not, such as U.S.A.
If the UK was to leave the EU, then it would have a damaging effect over the Britain’s economy as well as on the businesses that operate within. It would also affect a business like “The Perfume Shop”. First of all, any international trade that the business has secured with a may also found to be affected if the UK was to leave the EU. The reason for this is due to that fact that there would be an increase in the importation tax between countries meaning that there will be an extra expenditure cost that the business might not...