UK Businesses Going Abroad Essay Example | Topics and Well Written Essays - 4000 words

UK Businesses Going Abroad - Essay Example This also has various tax implications. In UK, the double taxation hit has come about due to the fact that the foreign income dividends have been abolished. By going abroad, companies like SmithKline Beecham, BAT industries, Glaxo Wellcome, RTZ as well as Reckitt and Colman, have managed to accommodate the principles of geographical diversification as a bid towards cushioning the blow of double taxation that has been proposed by the Chancellor of Exchequers. (Ahmad, 1997) There are numerous ethical issues that come up in this regard. To begin with, there has been a sharp increase in the number of companies that have chosen to pay their dividends as "Fids". This cost the UK economy and UK businesses over 400 million due to the fact that most of these UK businesses were moving abroad. Other issues include an analysis of whether or not it is ethical to make use of the various facilities in terms of fiscal, policy and financial mechanisms that are made available to developing countries. (Ahmad, 1997) Developing countries are in need of aids that will further the cause of economic progress. Therefore, the tax implications for these countries are favourable. Yet, the economics of these countries can accommodate only a certain percentage of businesses as far as the enjoinment of these benefits is concerned. In this regard, when a UK business moves to one of these countries, it is technically eating into this share that could otherwise have been enjoyed by the national businesses. This is an ethical issue that has been explained by cynics and economic scholars as making use of the next best opportunity. (Ahmad, 1997) International Marketing The arena of international marketing has become a field on its own that has revolutionised the arena of geographic diversification. UK businesses have taken the step towards international diversification due to make better use of opportunities that lie in the avenues of international marketing on today's world. This involves reaching out to developing countries like India, the Far East countries and other developed nations like US as well. While the developing countries have increasing levels of disposable income due to a growth in economies, the UK businesses are aiming at these countries. The UK businesses take to more developed countries like USA and Australia due to consistency as far as standards in management and marketing are concerned. Also, culturally the UK businesses are closer to the culture followed in USA and Australia more than other countries. In this regard, it is imperative to loosely define international marketing before moving on. International marketing is that sphere of activities that is aimed at introducing a product in a country or group of countries with the aim of creating sales and some amount of awareness regarding the brand. Customer satisfaction in today's world has come to occupy a place of vital importance. The phrase, "customer is king", is not just a phrase anymore. It is symbolic of the changing times where consumer courts are waiting to help citizens assert their rights. In this context, a traditional industry like banking has followed the trend and pulled up its socks. The characteristic laid back attitude of the banking industry has been long replaced by