Question

Examine the for Es that drive globalization in the context of international business. 3 pages essay

Answer 1

Globalisation
Globalisation means the interaction and interdependence of world economies on the lines of exchange of goods and services, technology, culture, capital and human beings. In international business terminology, globalisation presents an opportunity to business to expand, thrive and increase profits by the way of increasing access to markets, new and cheap labour and competition etc. Globalisation by working on the lines of capitalism has led to integration of local into global sphere. Due to the development of transportation and communication, Globalisation has taken a strong hold on modern times business atmosphere.

There are many forces that drives the engine of globalisation in the context of international business such as
1. Technology: Improvement in technology is perhaps the most important factors that drives and keeps the engine of globalisation running smoothly.
i) Advancement in information and telecommunications has made the work of international business quite easy. Whether the business is situated in one part of earth, its product specifications and services are available to global market of consumers all over the world through just a click.
ii) Through the help of information and telecommunications, International business thrive and expand their product popularity through global media platforms that are used by consumers all around the world. Whether a person is sitting at home, reading news, businesses get widespread opportunity of advertisement through this access of information.
iii) Most importantly, improvement in transport technology and connectivity has helped the business that have become global to satisfy their consumers more efficiently and reach new heights of profitability.

2. No Cross border Hurdles: Quite frankly, the cross border restrictions greatly affect global businesses. In fact, Cross border barriers dampen the free spirit of globalisation that the international business need. Trade barriers are a great hurdle and stand at a risk of hurt the profitability of international business. Cross border hurdles affect the free movement of goods and services.
i) It is argued that reduction of cross border trade restrictions greatly help to increasing global productivity and expanding output.
ii) Decrease in trade restrictions can help the national economies to achieve desired results of output due to increased competition.
iii) When the cross border hurdle are removed, the global market get access to refined and improved products and services with decreases prices due to economies of scale.

3. Consumer specific factors
It is probably the product of new analysis on how to accentuate the process of globalisation. Apart from doing extensive researches on increasing the market share, investing in Rand D for technology and analysis on countries for eating the fruits of globalisation efficiently, the recent researches indicate that including and studying consumer demand is just as important.
A recent study indicates consumers all around the world have increased their activities through information and telecommunications. So international business have a wide area open to explore and expand their business by increasing their activities by making use of information and telecommunication technology such as internet, e commerce and media networks instead of just focusing on emerging markets.

4. Political atmosphere:
Political ambience plays an important role in deciding the prospects of global and international businesses. The political decisions taken by governments all over the world have a great tendency of affecting the businesses that expect to expand globally.
i) A lot of international businesses find countries to invest and establish their businesses where there is political stability. A sudden change in government policy can prove to have multiple affect on businesses.
ii) Being one of the most unpredictable factors, political decisions like tax policy can completely change the prospects of a business.
iii) Political risk has become the most important factor in deciding the investment and expansion criteria for any international business. Business regulations have been the most discouraging factors for businesses worldwide.

5. Competition: Competition is argued to be the most efficient ways of increasing business activity and provides a greater chance of improving and presenting the goods and services in a better form.
i) When there is little competition, there are little chances of improvement or innovation. When many businesses are fighting tooth and nail, there is going to be a race of providing good and efficiently.
ii) Healthy competition brings the promise of gaining more market share and developing consumer base. Suppose increment in consumer specific factors such customer services would allow the businesses to gain a repute and help them gather loyal costumers.