Globalisation: How UK businesses compete internationally, offering:

The idea

UK businesses compete internationally by choosing an appropriate offering. They may offer lower prices by sourcing or producing where costs are lower, or by achieving economies of scale. They may offer better quality through design, materials, reliability or customer service. They may offer a wider range of products to suit different markets, or a unique product or brand that rivals cannot easily copy. For example, a UK clothing firm might sell online at competitive prices, while a UK engineering firm might win contracts by offering high-quality, customised equipment. The best choice depends on costs, target customers, competitors and the firm's strengths. Competing internationally is assessed through questions that ask students to explain or analyse how a named offering helps a UK business win sales abroad.

What earns the marks

• Better quality can help a UK business compete internationally by building a reputation for reliability, performance or design, which can justify a higher price and encourage repeat purchases from overseas customers.
• A wider range of products can help a UK business compete internationally by meeting the different needs and preferences of customers in several countries, increasing the number of potential buyers.
• A unique product or brand can help a UK business compete internationally by differentiating it from rivals, reducing direct price competition and making customers willing to pay more.

Common mistakes and how to put them right

• Assuming that competing internationally always means charging the lowest price.

  Put it right: Lower price is only one possible offering; better quality, wider range or a unique product or brand can also win international sales.

• Treating all overseas markets as identical.

  Put it right: Customer needs, incomes and competitors differ between countries, so the offering should be matched to the market.

• Listing an offering without explaining how it helps the business compete.

  Put it right: Each point should show the link between the offering and the reason overseas customers choose the business.

Exam tips

• Read the question carefully to identify which offering is being asked about, then apply it to the named UK business or market rather than writing generally.
• Use connectives such as because, therefore and which means that to show the chain of reasoning from the offering to international competitiveness.
• Where the question allows a choice, briefly justify why the chosen offering suits the business better than an alternative.