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Unit39 p4

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Unit39 p4
Unit 39 P4
Describe how the monetary environment affects businesses that operate internationally
The business that I will be talking about in this assignment is Tesco
What is monetary environment?
Tesco is located in different parts of the world; it is an international business with stores in Asia and Europe. Tesco need to think about the business as one, even though they have stores in different parts of the world, they still make plans for Tesco as one.
Tesco established and promoted- Tesco first started in the UK then the business expanded and they decided to open stores in different countries, they have stores in China, India and Turkey etc. they first plan out and decide where they should locate the store, the find a busy place where people shop, then they start the work on the place. Tesco have to look at the countries business law and follow the law. Every business should know the business law in the country where they want to operate. Tesco has a legal structure in all countries, Tesco is a public limited business in all countries, and people can buy shares.

Tesco finance international-
There are lots of financial issues for businesses like Tesco who are exporting to other countries; there are some of issues listed below:
Language and cultural differences
Currency and payment problems
Political instability
These are some of the problems that businesses like Tesco face when exporting internationally, however the UK government provides a range of support services to UK businesses exporting to other countries to help them overcome these risks and problems which they might face.
Currency is a major problem for business like Tesco, because every country has different currencies so they have to know the currency for all the countries that they operate in and all the countries that they trade with or get their goods from. Currency can go up or down so they need to be up to date.
The UK government help businesses; they give those ideas and advice on

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