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International buiness - Research Paper Example

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The entire world is undergoing a major change in the way its people operate and conduct business driven primarily by the process known as “globalization”. Globalization is brought about as a result of faster and more reliable communication techniques between nations and…
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International buiness
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Download file to see previous pages is no longer confined within the local marketplace, each entity entering the market finds themselves competing with companies halfway around the world and under different governmental restrictions. Each organization naturally attempts to maximize their bottom line for their shareholders by operating under the most lenient restrictions, lowest costs for production and highest areas for distribution. However, nations still retain the right to establish and enforce specific rules and regulations upon corporations operating within their regional market as a means of maintaining discipline and protecting national resources including the citizenry. Generally speaking and depending on the condition of local market, nations can opt to adopt either a free trade policy in its approach to international trade or take a more protectionist stance. Each nation has its own criteria and priorities to consider when determining which strategy to adopt. While the approach in the past has leaned more toward free trade, this approach is changing as developing countries have reassessed their viewpoint regarding protection of the local industry in order to ensure that local companies are not driven out of business by the high competition they face with international companies. The purpose of this report is to discover some of the various approaches that have been taken to both encourage international trade at the same time that it seeks to protect local business.
The World Trade Organization (WTO) is an organization that lobbies internationally for the liberalization of trade. It can acts as the middle man between business and government working to negotiate trade agreements favorable to international business. In many ways, it can be said that this is the organization that sets rules for international trade and actively settles trade disputes. The present state of WTO came about as the result of long term negotiation and final agreement on the General Agreement on Tariffs and ...Download file to see next pagesRead More
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