The Interconnectedness Of Globalization In International Business

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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

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