Globalization and International Trade

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International Business is a term used to collectively describe topics relating to the operations of firms with interests in several countries. International trade occurs because no single country has the resources to produce everything well. Nations specialize in the production of certain goods and trade with other nations for those they do not produce. More and more companies are recognizing that pursuing opportunities in the global marketplace is the key to their present and future success. There are many advantages of going global such as, new markets, new sources of capital abroad, swifter technological advancement, and more choices for consumers, just to name a few. One of the results on the increasing success of international business ventures is Globalization. Globalization can be described as an increased connectivity among societies and their elements due to the explosive evolution of transport and communication technologies to facilitate international cultural and economic exchange. There are several countries that participate in international trade, as well as several forms of international business activities. For every organization, its goal is to maximize profits. Over the years, the increase in competition causes organization to either disintegrate or rise on top of other competitors. Therefore, the best tactic for any organization is to construct innovative ways in conducting a business. To be more specific, globalization provides a key to an organizational success. Globalization is the “shift toward a more integrated and interdependent world economy” (www.investorworld.com). In simpler terms, globalization is a business expansion in the different countries. Wal-Mart is an example of a business’s globa... ... middle of paper ... ...e matters of dispute and friction. Along the way, one could throw in some observations about US companies looking for a lifesaving oasis of the commercial success, which in fact is a mirage all along. The ingenuous but self-deluding foreign business cannot outmaneuver the immovable and obstructionist Chinese political apparatus, which is unwilling to accept the US or any foreign business success in China and unable to turn itself into the administration of a modern economically driven nation at the expense of its own ideology and power-based privileges. Finally, one could haul in the angry criticisms of the US politicians, who have asserted that American businessmen are so eager to enter the Chinese markets and they will commit corporate and financial suicide by throwing money and time at any Chinese operation until it completely destroys their competitive prowess.
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