Trends in International Business - Essay Example

Liberalization of Markets Liberalization of markets actually allows international businesses to grow beyond their traditional domestic markets and tap into the potential offered by other markets. Liberalization is also important because it offers firms access to cheap raw materials and labor and hence an opportunity to actually produce goods and services at relatively lower prices and pass on the benefits to the consumers. Liberalization of the markets therefore also provides benefits to the consumer in the shape of lower prices as well as better products.

(Joskow, 2008)Deregulation of industriesDeregulation of industries has actually allowed them to become more efficient and expand at both the domestic as well as international level. Deregulation process has actually allowed global firms to expand and enter into the markets which were traditionally closed. Further, deregulation has created more efficiency and has allowed them to move beyond bureaucracies to implement better and more improved management practices. Deregulation of industries like Airline services has driven the prices down and further intensified the competition.

This has therefore benefited common consumers to take advantage of lower prices and more efficient products and services. (Katsioloudes & Hadjidakis, 2012)Changes in Eastern Europe since the fall of Berlin Wall The fall of Berlin Wall has actually paved the way for the integration of Europe and has allowed Eastern Europe to come out of the Communist influence. The changes in Eastern Europe since the fall has allowed these countries to become part of EU and thus gave access to new markets. International firms have also gained access to cheap labor in Europe besides Consumers getting low priced products.

BibliographyJoskow, P. L. (2008). Lessons Learned From Electricity Market Liberalization. Retrieved from MIT: http://economics.mit.edu/files/2093Katsioloudes, M., & Hadjidakis, S. (2012). International Business. London: Routledge.