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onal trade and its correlation with foreign direct investments, domestic environments, latest technologies, and the impact on the current international business environment. It also describes the role of driving forces behind the firmly integrated global international trade system. A substantial preference is given to underline the implications of international trade i.e. declining barriers to the international business and its continuous contribution towards the world’s economy. It also analyzes that how the international businesses are reacting to the changing environment of global economy. The paper puts some light on the concerns highlighted by rapid growth of international trade along with its implications to some particular countries and multinational companies. The roles of these companies and government policies have been critically analyzed to figure out the benefits and gray areas of international trade.
Over the past thirty years or so, a universal shift has been occurring in the world economy. There was a time when national economies were isolated from one another and relatively self contained. The rationale of isolation included barriers to cross-border trade and investment, i.e. due to distance, time zone, environment and cultures, natural differences in languages and political regulations, and the business systems. Today, the world has been observing a totally different scenario because geographical distances are reducing due to tremendous development in telecommunications and transportation technologies. Beside this, the global environment and culture have turned into almost same fashion while national economies are merging into an integrated as well as independent global economic system. All these changes and developments have decreased the barriers to cross-border trade and investments. It is widely believed that all such happenings and improvements have been occurred by the tremendous growth of international trade at global scale (Panic,
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Still if the government plans to impose tariffs over the imported goods, the result would be that other countries will do the same. End result would be increased unemployment in the export competing industries and decreased unemployment in import competing industries.
According to Miller (2003), the study of this particular phenomenon concerning the Anti-Sweatshop Movement of the 1990s, rendered the then economists with the opportunity to obtain an apparent understanding of the working conditions and its potential impacts on the economic development processes.
Economists have devoted much research to understanding the dynamics of international trade. Through the years theories have evolved that in each instance added to the collective understanding of cross-border trades, but for each new theory, new shortcomings are encountered.
This era of globalization has lead to countries coming closer to each other, this has happened in all aspects including trade. International trade is the exchange of goods or services between economies. It is calculated in the current account of the balance of payment of the economy.
A member of the organization can restrict the importation of a product for a short period of time, with an aim of preventing a serious injury to the domestic industry that produces similar products. According to Brown (2008), such a step is called a safeguard action.
In this regard, a continuous growth and rapid transformation of the business strategies practiced by the modern business organisations can be observed apparently with respect to their global trade operations. Contextually, the rapid development of modern trade operations among the various global industries has also inspired the organisations to be significantly focused on acquiring a continuously increasing market share and thereby attaining greater competitive advantages (OECD, 2008).
The currency of Rodamia must be either strong or at par with the valuation of other currencies otherwise the consumers of the country will not be able to purchase goods in the global economy. A strong currency boosts the confidence of the consumers and acts as an encouragement to the investors.
International business concerns international trade. Nowadays, most companies do business worldwide. The reasons are various, among them are the contacts that people have over a wide range of countries. These contacts enable people to acquire more products and services and have access to various resources.
The idea of comparative advantage is based on the fact that resources are unevenly distributed in countries. For this reason, those countries with abundant resources effectively and efficiently manufacture
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