Introduction The researcher will examine and analyze the future of globalization and the impact of political, economical, legal, and technological factors on global business. Also, the researcher will analyze the financing and trade issues of the different types of economic systems. Impact of Political Factors on Global Business The impact of political factors on global business is vital to the success of businesses. An unstable political environment will have a negative impact on global business. Countries experiencing political unrest, wars, and acts of terrorism will deter other countries from entering into global business agreements. Analyzing China’s political factors predicts China will lead the world in global business in 2020. China’s change from red communist to orange peril is what will lead the country in having a positive impact on global business. Also, China is the second biggest country using Purchasing Power Parity (PPP) which has a significant positive impact on the growth of businesses globally. China’s political leaders’ decision to make changes in how business is conducted is one of the main reason the country purchasing power parity has greatly increased and the cause for economy and global business growth (Kennedy, 2005). Underdeveloped countries political leaders and decision-makers have a better understanding of how changes in laws, regulation, and policies could negatively impact on the country entering and/or expand global business. Further, underdeveloped countries understand the importance of building partnership with other countries in order to have a positive impact on increasing global business. In some cases, there are still some countries, whether developed or underdeveloped exper... ... middle of paper ... ...al Relations, 12(2), 89-101. Retrieved from http://search. proquest.com.libproxy.edmc.edu/docview/925792862?accountid=34899 Kennedy, S. (2005). China’s porous protectionism: The changing political economy of trade policy. Political Science Quarterly, 120(3), 407-432. Retrieved from http://search. proquest.com.libproxy.edmc.edu/docview/208275791?accountid=34899 Talaulicar, T. (2009). Barriers against globalizing corporate ethics: An analysis of legal disputes on implementing U.S. codes of ethics in Germany. Journal of Business Ethics, 84, 349-360. Retrieved from http://search.proquest.com.libproxy.edmc.edu/docview/198225399? accountid=34899 Unay, S. (2011). Global transformations and the MENA: A comparative political economy analysis. Insight Turkey, 13(1), 175-198. Retrieved from http://search.proquest.com. libproxy.edmc.edu/docview/848934278?accountid=34899
Globalization is textually defined as the development of an increasingly integrated global economy marked especially by free trade and free flow of capital, and the tapping of cheaper foreign labor markets (Webster’s Dictionary). Within this definition we can see so many vital pieces that need to coexist in order for it to be a truly globalized environment in this world. Globalization is term that is currently being used more frequently but it doesn’t mean the early forms of it were not already in motion. From the early second century BC, “silk roads” were being formed which traded goods from one part of a country to another. Early empires were thriving on globalizing their countries by creating routes and trails to communicate and transport goods. Globalization has expanded boundaries for 3rd world nations who were underdeveloped to become more civilized in their governance. To understand further where globalization spreads its roots, we must go deeper into the fundamentals of free trade, the free flow of capital and advantage taken of foreign labor markets.
The Millennium report advocated that the greatest challenge we face today is to ensure that globalization becomes a positive force for the entire world's people, instead of leaving billions of them behind in foulness. Inclusive globalization must be built on the great enabling force of the market, but market forces alone will not achieve it. It requires a broader effort to create a shared future, based upon our common humanity in all its diversity. Today the most significant changes in the world economy over the past decades are the upsurge in globalization of markets and industries. There are numerous forces that have greatly contributed to the rise of globalization, factors such as reductions in multilateral and regional trade barriers, mergers and acquisition that enhance assess to new markets and competition. Globalization can be claimed to have major and crucial positive implication on the businesses today.
Globalization is a process in which it allows mixing and collaboration from the consumer to the companies, the government, and internationally benefits. Globalization takes its toll on a lot of thing such as the environment, economic develo...
In business competition, the world economy has been continuously developed and also influenced on the volume of international trade and financial transactions. One of the most critical issues affecting national economies is the process of globalization (Oknation.net, 2009).
Science Initiative Group Institute for Advanced Study, 2007, Globalization: Trends and Prospects, Available from: http://sig.ias.edu/files/Egwang-_Welcome.pdf
Globalization is a long program supported by the developed countries in terms of economy to free trade agreements worldwide. It has also come to mean the relocation of production activities or services to places with lower labor costs . Global business in the past or at the time - do not need any support globalization of searching, namely the so-called level playing field . International trade has always had a mixed character in which national organizations and private companies have two parts , where the monopoly has been imposed , often defended by the military , where all forms of restrictions and tariffs have been common , and the participants have made numerous efforts to addressing such interference or to profit from it.
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.
At current time, it is, without a doubt, essential for a company looking to expand its scope and compete on the world stage of business to, through globalization, incorporate its products and services in the markets of different countries across the world. In doing so, it transcends the breadth of domestic business and starts participating in the realm of international business. This calls on the company to do a total evaluation of its current business outline and prospects by means of globalization to ensure a smooth transition to international business. As a result, in order for a company to maximize the efficiency of its expansion, it is important to find a nexus between globalization and international business by which they
Economically, globalisation paves way for a greater degree of interlinkage between economics and allows for an interactive and collective market where production and consumption is global rather than private. It allows not only for a collective market but also for an interdependent society. However, the other side of globalisation is found in the dominance of larger markets over smaller ones. This can be illustrated by the increased pressure on resources altering the relative prices of commodities as a direct result of growth in large emerging market economies. More importantly, globalisation results in creating an antagonism between the need to have an international market which increased productivity and enhances
This course explains how and why the world’s countries differ, by looking at their demographic, political, legal, economic, and technological environments. Students will be able to learn and apply in practice how these variables affect the business decision-making process. The course also presents a thorough review of the economics of international trade and of the global monetary system. Students will also examine and apply strategies of international business,
In this research, our aim is to compare the business ethics in both Germany and Japan. We will be discussing Germany’s culture and how the definition of business ethics changed over time, then we will move to the comparison.
Globalization’s history is extremely diversified and began during the beginning of civilization. Now we live in a world that is constantly evolving, demanding people to use resources in locations that are very difficult to obtain certain resources. This could make it completely impossible to operate in these specific parts of the world. However, globalization allows people across the world to acquire much needed resources. Globalization creates the opportunity for businesses to take advantage and exploit the ability to take part of their business to a different country. Nevertheless, globalization is part of today’s society and will be involved in virtually all situations.
In this dissertation, the impacts of globalization are divided into two broad groups: 1) global market threats, and 2) worldwide market opportunities.
THE POLITICAL ENVIRONMENT: The critical concern Political environment has a very important impact on every business operation no matter what its size, its area of operation. Whether the company is domestic, national, international, large or small political factors of the country it is located in will have an impact on it. And the most crucial & unavoidable realities of international business are that both host and home governments are integral partners. Reflected in its policies and attitudes toward business are a governments idea of how best to promote the national interest, considering its own resources and political philosophy. A government control's and restricts a company's activities by encouraging and offering support or by discouraging and banning or restricting its activities depending on the government. Here steps in international law. International law recognizes the right of nations to grant or withhold permission to do business within its political boundaries and control its citizens when it comes to conducting business. Thus, political environment of countries is a critical concern for the international marketer and he should examine the salient features of political features of global markets they plan to enter. THE SOVEREIGNITY OF NATIONS From the international laws point of view a sovereign state is independent and free from external control; enjoys full legal equality; governs its own territory; selects its own political, social, economic systems; and has the power to enter into agreements with other nations. It is extension of national laws beyond a country's borders that much of the conflict in international business arises. Nations can and do abridge s...
Stonehouse, G., Campbell, D., Hamill, J. & Purdie, T. (2004). Global and Transnational Business (2nd ed.). Chichester: John Wiley & Sons.