Question

answer to these questions in very short essays

• What are the key characteristics of business globalization?
• Explain global competition.
• Explain global supply chains.

Answer 1

Soln. Key characteristics of business globalization are listed below -

  1. Increase in the trade of goods and services across the border.

2. Increasing the transfers of capital in foreign countries through foreign direct investment.

3. Developing and marketing the global brands for serving foreign customers.

4. Increased and enhanced use of outsourcing and offshoring of production.

5. Increased in the labor migration in foreign countries.

6. Joining the new trade system and entities for better opportunities in external trade.

7. Increasing spending on capital investment, innovation and infrastructure across large parts of the world.

Global Competition: It is defined as the comparison between the services or goods provided by competing companies that serve international customers. Global competition has helped different companies to export and import their goods and services internationally, which helps in increased profits and flattens the playing field in business.

Global supply chains: It is defined as a dynamic worldwide network that helps in supplying the goods and services by a local company to overseas market. It involves people, information, processes and resources involved in the production, handling and distribution of materials and finished products or providing a service to the customer across the world. It helps connect the supplier and consumer of two different countries to sell and buy the goods and services interchangeably.