Furthermore, with speedily increasing globalization, international business has become a popular trend and has drawn the attention of business executives, related officials and academics. International business is different from the local or domestic business. As far as the international level, the globalization of the world economy and the differences between countries present both opportunities and challenges to the international businesses. The Forces behind the globalization 1. Increase in and Expansion of Technology 2.
The trend toward a single global economy is expanding markets and providing opportunities to managers.today, countries are going to work together as more of a global economy. Globalization is a process of interaction and integration among the people, companies and governments of different nations. Globalization not only has effects on the economy, but also the political systems, environment, culture and law. Globalization can help to expand a company's market. Expanding the market where an organization does business and promotes its products opens up a larger customer base and possibly greater profit margins.
Generally, the economic participation of the trader's importers and exporters and the enormous from one side of a country to the opposite side dealings increased considerably. Entirely this needed suitable managing of the global circulation of capitals for that the learning of international financial management arrived to be crucial. In addition, the recent international fiscal crisis has obviously increased dem... ... middle of paper ... ...to budget and organization several purposes, functioning in particular stage previously the greater managing in such ways, which create it simpler for the greater managing to evaluate the business's growth to modify rules and the concepts of the organization correctly. The worldwide economical supervisors aid the greater managing in the procedure of managerial by indicating the greatest potential alternatives beyond the amount of substitutes choices obtainable. Hence, worldwide economical management supports the managing at several points in taking countrywide and worldwide economical choices.
This goal of growth in economy can be achieved through international trade, which involves many countries. Despite the obvious gap between developed and developing countries, economic globalization can manage to bring out positive results for both countries. Benefits arising from economic globalization can be shared among different organizations in various nations. When countries get involved in global trade, companies in those respective countries also benefit from such a move. Nations as well as business organizations are able to explore new markets and therefore increase their output leading to economic growth.
My main objective is International Trade, the types of International Trade, and the effects of International Trade to the economy of the country and all around the world. International trade means exchanging services and goods between two countries and more. This type of trade can help a country to increase its economy, and has many effects on it. Trading globally gives a great opportunity to consumers and countries to import that things which are not available in their country, or can find better quality than they have in their country. Trading goods like: oil, jewelries, foods, clothes, machines, etc.….
The size of the firm’s market are increased by the international trade which results in lower average costs and increasing in productivity, as it ultimately leads to increase in production. 2. Production efficiencies. The efficiency of resources allocation is improved by the free international trade, as the higher productivity and increasing in total domestic output of commodities and services are leaded by the more efficient use of resources . increase in competition promotes the use of new technology, innovative production methods, marketing and distribution methods.
In the last century, globalization has become a very tangible part of how business is conducted. Technological advancement allows international trade and commerce to happen rapidly and easily while the advancement in how goods are transported and how people communicate have had a drastic effect on the globalization of business. Management practices and culture also has a bearing on how international enterprise has is conducted. Managers have to adapt to different management practices, adjust to a new culture, and sometimes face ethical issues in a foreign field. Management is an important role in finance and enterprise that has far reaching consequences on the globalization of business.
The reason is that International trade brings various benefits to both business firms and countries: First of all, International trade boosts development and generates growth by allowing exchanging knowledge, standards, and best practices of skills and techniques globally and using the best that fits well. Moreover, Country’s Shortage and high costs become avoidable. Scarcity in availability of raw materials or expensive labor force in local market is exempted. Obtaining the raw materials at relatively lower price than local market can reduce the cost of doing business. In case of illiquid Local markets clients can benefit by Easy access of acquiring financing by entering into highly li... ... middle of paper ... ... terms and condition which may cause future disputes or Documentation risk • Acknowledge the buyers culture and accept cultural differences to keep friendly based business partner.
Nowadays the international trade has a considerable extension; the exchange of goods, services, and natural resources is making in all over the world. Transportation and communication become quicker with the precious aid of the new technology. Often, several companies move from their native country to another one. The world is seen now as a global market where a diversity of societies is appealed to deal together. So, the management must from now on be considered in larger sense as several countries has to combine their view of management, their managerial styles and indubitably their culture, to ensure the globalization of business.
The increase of globalisation has presented businesses with unexampled opportunities for global investment and trade. Deemed by Rosabeth Moss Kanter as “one of the most powerful and pervasive influences on nations, businesses, workplaces, communities and lives” (1995, as cited in Schermerhorn et al., 2014), globalisation has allowed many multinational corporations (MNCs) to expand coordination and control of their activities to foreign countries by forming subsidiaries and joint ventures. This is necessary to establish a presence in the increasingly competitive international market and is now a pre-requisite for business survival and growth. To maintain and improve their global competitiveness, MNCs must manage both local and foreign enterprises effectively. This concept of international management can be simply described as the “management in organisations with business interests in more than one country” (Schermerhorn et al., 2014, p. 90) and is applicable to MNCs, who are defined as organisations with “extensive international operations in more than one foreign country” (Schermerhorn et al., 2014, p. 101).