Skoda Stakeholders

Topics: International trade, Free trade, World Trade Organization Pages: 9 (2274 words) Published: April 5, 2011
Skoda auto is an automobile manufacturer in the Czech Republic. Starting off in the late 1890’s Skoda was just a company that manufactured cycles. However by the mid 1940’s Skoda had started to manufacture cars and slowly progressed as a company. However it was never a big company as they sold regular cars, which did not stand out. However in 1991, it was brought by the well-known car manufacture, Volkswagen. This made a dramatic change in the design and production of their cars as German technology was used to develop Skoda products. Know having the financial backing of a big German company, it allowed Skoda to push them selves to new levels and to produce bigger and better cars.  

In the past Skoda specialised in making small vehicles, however due to the investment from Volkswagen, Skoda is now also selling cars in all sorts of shapes and sizes. Perfect for some young boys and girls, families and large families. Not only have Skoda been rewarded for there recent cars with high sales but also by being presented with an award for best car, it was rewarded as the 2006 small family car of the year as well as ‘hot hatch of the year’  

International trade
International trade is where countries exchange goods, services and capital across the international borders. In most countries it represents a significant share of gross domestic product, also known as (gdp).  

There are many reasons to why countries trade, being beneficial for both less economically developed countries and the more economically developed countries.  
• There is prevention for some countries to produce certain products. For example Parma ham can only be produced in Italy, and in order for countries such as the U.K to have these products, the U.K must trade with Italy in order to have this product.  

• Some products can cost too much to produce. For example if the U.K wanted to grow bananas they would have to do it in greenhouses as the U.K does not have the climate, where as other countries such as India grow bananas with ease and on the cheap.  

• Many types of goods and services are invented in one country and, initially, they can only be brought from there.  
• Some countries cannot not produce the natural resources it needs it self. For example countries such as the USA have a lack of oil and in order to have this product they must trade internationally. There is an international trade between USA and Iraq  

How international trade has changed since 1970’s
Since the past years, there has been a major development in international trade, the development of international trade means that is has become more and more popular amongst countries. There are many factors that has helped international trade develop, these include;  

The increase of technology within LEDC and MEDC countries has now allowed them to trade globally. However LEDC are only half way on the same wave length as MEDC, as LEDC have only now brought in machinery, where as MEDC are working on how to improve machinery they have already got, by making them faster to use and the high quality of product.  

The communication between countries has also been made easier as technology such as e-mail, fax and mobile phones has been introduced. However technology also has improved transport, as it’s made it more efficient, meaning countries can trade with each other faster and safer.  

Competition has improved international trade since the 1970’s as it has grown and allowed countries to expand there business worldwide. Presently the market is very big and every company has to compete. In order to become a success they have to be the best. Many businesses are now expanding there business overseas as they feel a company known worldwide shows the dominance it has in the market.  

For example Companies such as TESCO started off as a U.K business, however due to increasing competition they decided to take there business that one step further...
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