Essay
Introduction
Globalization is an umbrella term for complex senses of economies, social and technological culture and political change that increase the independence integration and interaction between people and business in disparate locations.it can be also known as the shrinking of the time and space.
As globalization affects country and people all over the world economic and culture factors play a very large role.
The world has become a globalize village so everyone is connected, there is no more barriers International business is a clear result of globalization, foreign markets are increasingly becoming bigger and bigger. Importing and exporting has become one of the successful features of business. INTERNATIONAL BUSINESS
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• In ‘international business’ is very important to understand and solve problems in a global way without prejudicing any sector of the business.
• It is very different from domestic business as domestic business has local problems that are less complex to solve.
• It is becoming increasingly popular and bigger.
• At international level, the globalization of the world economy and differences between two countries present both opportunities and challenge to international business.
• Raising awareness of the interrelatedness of one country’s political policies and economic practices on another.
• Therefore, understanding the global business environment, that is the interconnectedness of cultural, political, legal, economic and ethical systems.
• There is also a need to take account of the globalized business environment when making international strategic decisions and managing international operations.
• Exploring the basics concepts of underlying international finance, management marketing and trade relations.
KEY
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• There is a cultural and economic exchange between countries that trade together.
• Foreign direct investment is a measure of foreign ownership of productive assets such as factories, mines, land and other natural resources.
• It normally improves the balance of payments and trade deficit of a country.
• Such trade however not only occurs between industrialized nations but also between developing and emerging economies.
• Those businesses that are not competitive in the global village are pushed out of business or forced to fold as globalization favors firms that are strategic and can maintain their competitive advantage and exploit their strengths and opportunities.
• There has been an opening of worldwide production markets and broader access to a range of a foreign products for both consumers and companies
EFFECTS OF GLOBALIZATION
• There has been an increase of information flows between geographically remote locations.
• Globalization leads to increased competition and this competition can be related to products, service, cost and price. Technological advances have quickened lag and response times throughout all economic
With businesses fast emerging and competition strict as ever, most businesses seek ways to expand internationally in order to ensure their position in the competitive market. Although globalization-the shift toward a more interdependent and integrated global economy- creates more opportunities for international business, some business attempt to expand blindly in a different country without considering issues such as culture clash, other businesses tackle the competition through strategic changes in order to accustom to the new culture.
When it comes to doing business internationally the decision making is more complex. There are many interactions between each country that need to be addressed. In order for a business to be successful in the international market they need to examine and analyze all the facets of their company. They need
A major challenge of doing business internationally is to adapt effectively to different culture. Such adaptation requires an understanding of cultural diversity, perceptions, stereotypes, and values (Hodgett &Luthans, 2005). Doing business overseas has its challenges as well as it rewards.
Globalization is huge part of the success of some the biggest firms today, from Apple, General Electric, to Google. It allows a business to develop international. It allows reduced costs by maximizing production known product lines, allowing to expand into different markets gives a more competitive edge and expanding to new technology helps to increase to a bigger company, having more political edge within trade agreements.
To keep up with the fast moving phase of the global business era, it is a necessity for organizations to understand the larger forces that is shaping the macroenvironment of the foreign market. Companies usually decide to expand their market to grow their revenue in an untapped market, however, before doing so, the obstacles that are not typically encountered in the domestic market should be taken into account.
Daniels, J. D., Radebaugh, L. H., and Sullivan, D. P., (2011). International Business: Environments and Operations. Prentice Hall, Upper Saddle River, New Jersey.
...MENT ENCOURAGEMENT OF GLOBAL BUSINESS FOREIGN GOVERNMENT ENCOURAGEMENT Governments also encourage foreign investment. The most important reason to encourage investment is to accelerate the development of an economy. An increasing number of countries are encouraging investments with specific guidelines toward economic goals. MNCs may be expected to create local employment, transfer technology, generate export sales, stimulate growth and development of the local industry. US GOVENRMENT ENCOURAEMENT The US government is motivated for economic as well as political reasons to encourage American firms to seek opportunities in the countries worldwide. It seeks to create a favorable climate for overseas business by providing the assistance by providing the assistance that helps minimize some of the troublesome politically motivated financial risks of doing business abroad.
Globalization remains a pivotal topic in many schools of thought, and continues being a topic of controversy even in local economies today. Perhaps the reason for this is integration and competitiveness the world over. Conceivably, even more than integration, is the competitiveness of organizations, has possibly facilitating the fascination and misconception about of globalization. Nevertheless, globalization has brought about a number of effects influencing the design and geographical location of the organization. However, globalization has effectively placed the world in a bubble, or maybe one could equate the changes to being placed in an envelope.
Globalization can not only affect a company opening an office in another country but it can affect a small local business as well. As the internet brings the world closer together it becomes far more likely that a business that opened with no intention of selling internationally will have customers form different parts of the world asking for their product. For instance a steel company located in Pennsylvania may suddenly find orders coming in from South American factories. How the steel plant chooses to handle this new international customer could mean ...
... A lot of companies have directly invested in developing countries like Brazil and India by starting production units, but what we also need to see is the amount of Foreign Direct Investment (FDI) that flows into the developing countries. Companies which perform well attract a lot of foreign investment and thus push up the reserve of foreign exchange. CONCLUSION Globalization In conclusion, international business is best described as globalization.
The process of globalization allows the global market to include products and services from all the companies around the world, including all the investments that is across national borders. Indeed, many American companies have taken their merchandise, manufacturing and services to invest in other countries. However, this has produced a negative effect in the global economy. The American companies
Globalization enhances our sense of global consciousness and reflexivity. When we work in an organization that is global, multinational, or multicultural, we must be aware of the cultures of others and of our own attitudes, beliefs, and behaviors.
Globalization affects this world and the people of this world in many ways. It is the idea of making the entire world like a single country.
Stonehouse, G., Campbell, D., Hamill, J. & Purdie, T. (2004). Global and Transnational Business (2nd ed.). Chichester: John Wiley & Sons.
The definition of globalization is, “Globalization is the connection of different parts of the world. Globalization results in the expansion of international cultural, economic, and political activities. As people, ideas, knowledge, and goods move more easily around the globe, the experiences of people around the world become more