BTEC Level 3 Unit 5 International Business Assignment 1 Sample & Guide

This BTEC Level 3 Unit 5 International Business Assignment 1 sample guide covers Learning aims A and B of the Pearson BTEC Level 3 National in Business (2016 specification): the international context for business and the international economic environment. It explains each Pass, Merit and Distinction criterion, shows how to structure the report, and gives model paragraphs and a worked exchange-rate example built around two contrasting businesses.

What Unit 5 Assignment 1 asks you to do

Assignment 1 usually places you in an advisory role, for example working for a local chamber of commerce or a trade support office. You write a report for business owners who are thinking about trading overseas. You research several international businesses, then choose two that operate in contrasting markets, such as:

• a small or medium-sized UK firm that exports a niche product (for example a craft food producer or a specialist engineering supplier); and
• a large multinational with production and sales across many countries (for example JCB, Burberry or Unilever).

Your report normally has three parts: why and how the two businesses operate internationally, including the finance and support available to them; the international economic environment, including globalisation and trading blocs; and an evaluation of how globalisation has affected one business. Assignments 2 and 3 cover the rest of the unit, so keep this report focused on Learning aims A and B.

Learning aims for Unit 5 International Business

Pass, Merit and Distinction criteria explained

How to answer Learning aim A: the international context

Begin with a short profile of each business: what it sells, where it trades and how it entered those markets (exporting, licensing, franchising, joint venture, or overseas subsidiaries). Then explain the motives behind its international activity and the finance it uses.

1. Profile of business 1 (SME) and business 2 (multinational).
2. Reasons for operating internationally, applied to each.
3. Types of finance: explain how each works and which suits which business.
4. Sources of support: UK Export Finance, the Department for Business and Trade, the British Chambers of Commerce and local chambers, banks and trade associations.
5. Analysis (A.M1): how valuable each type of support is for each business.

How to answer Learning aim B: the international economic environment

Explain globalisation through features you can see in your two businesses, then explore trading blocs and barriers.

• Features of globalisation: integrated supply chains, cheaper transport and communication, e-commerce, the growth of emerging markets, outsourcing and offshoring, and global brands.
• Trading blocs: a free trade area removes tariffs between members; a customs union also sets a common external tariff; a single market adds free movement of goods, services, capital and people. Examples include the EU, USMCA, ASEAN and the CPTPP, which the UK has joined.
• Brexit: since 2021 UK–EU trade has been governed by the Trade and Cooperation Agreement, which is tariff-free for qualifying goods but adds customs declarations, rules of origin and checks.
• Barriers (B.M2): tariffs, quotas, embargoes, product standards, licensing, exchange-rate risk, cultural and language differences.

Worked example: how exchange rates affect an exporter

A UK firm sells a product to German retailers. It needs to receive £20.00 per unit to cover costs and profit.

1. At an exchange rate of £1 = €1.17, the euro price needed is £20.00 × 1.17 = €23.40.
2. The pound strengthens to £1 = €1.25. To still receive £20.00, the price must rise to £20.00 × 1.25 = €25.00, an increase of (€25.00 − €23.40) ÷ €23.40 × 100 = 6.8%. German buyers may switch to cheaper suppliers.
3. If the firm keeps the price at €23.40 to protect sales, it now receives €23.40 ÷ 1.25 = £18.72 per unit, which is £1.28 less than before.
4. On an order of 5,000 units, that is 5,000 × £1.28 = £6,400 of lost revenue.

Use a calculation like this in B.M2 to show that exchange-rate risk is a real barrier, and in A.P2 to explain why exporters use forward contracts or invoice in sterling.

For AB.D1 it also helps to plan your evaluation in a table before writing it up. The example below is for a UK-based multinational manufacturer.

The “Weight” column is what turns description into evaluation: it shows which impacts matter most and why.

Common mistakes that cost marks

• Choosing two businesses that are not genuinely contrasting, for example two supermarkets.
• Defining globalisation in general terms without linking each feature to your businesses.
• Listing finance types without saying which suits an SME and which suits a multinational.
• Using out-of-date facts, such as describing the UK as an EU member or referring to NAFTA instead of USMCA.
• Describing barriers without analysing why they affect each business differently.
• Writing a one-sided “globalisation is good” answer for AB.D1.

How to move from Merit to Distinction

AB.D1 asks you to evaluate the impact of globalisation on one business. Pick the business with richer evidence, usually the multinational. Weigh opportunities (new markets, economies of scale, cheaper inputs, access to talent) against threats (global competition, supply chain disruption, exchange-rate exposure, reputational risk from overseas suppliers, political uncertainty). Use specific examples such as supply chain problems after 2020 or changes to UK–EU trade. Then decide whether globalisation has, overall, strengthened or weakened the business and under what conditions that might change.

FAQs

Which businesses should I choose for Unit 5 Assignment 1?

Pick one small or medium-sized exporter and one multinational, ideally in different sectors and markets. Make sure you can find reliable information about both.

What counts as a contrasting market?

Markets that differ in level of development, distance, culture or trade arrangements, such as an EU country compared with an emerging Asian or African economy.

Do I need to include Brexit?

Yes, where relevant. For UK businesses, the change from EU membership to the Trade and Cooperation Agreement is a major part of the current trading environment.

What is the difference between A.M1 and B.M2?

A.M1 analyses the support available to your businesses; B.M2 analyses the barriers they face. Both must compare the two businesses.

Is Unit 5 externally assessed?

No. Unit 5 is internally assessed through assignments marked by your centre.

Need one-to-one support from a subject specialist? Our BTEC Level 3 assignment help service covers planning, feedback on drafts and referencing.

If you would like your report checked before submission, you can get expert help with your BTEC assignment. For related finance topics, see our BTEC Level 3 Unit 3 Business Finance answer guide.