Exploring Business, v. 2.0 book - Article Example

NUMBER> 17 September Understanding Business Globalization Conducting business on a global scale has driven economies for the past decades, asseveral industries around the world have engaged in various levels of globalization efforts to expand their businesses. One of the fundamental concepts in understanding business in global environments is the import and export of goods and services of a country or a certain industry (Collins 131). Countries engage in import and export, or buying or selling of goods and services, are due to their differences in the cost of labor, availability of natural resources, and technological capabilities; also taking in consideration the absolute and comparative advantages of which products or services to focus on (131).

Trade is also measured through the concepts of trade surplus and trade deficit (134).There are tremendous opportunities for a business entity to enter the global markets, such as licensing agreements, contract manufacturing and outsourcing, alliances and joint ventures, FDIs and subsidiaries (140). This provides the business to grow extensively and create a market share on the international market. However, companies must be cautious and carefully consider the global business environment which would be vital for the success of the globalization plan.

Companies should be sensitive on factors such as cultural environment, language, sociability, and intercultural communication (152). Trade controls will also play a critical role in engaging in globalization. Tariffs and quotas are present in every country which protects its vital and developing local industries (167). The reduction of trade barriers, such free trade agreements, also helps strengthen the regional trading market by bolstering the import and export between the member countries (171).

International business is truly a lucrative field to develop a career, and preparing for such would require early strategic planning (179). Choosing an undergraduate degree specializing of a core business concept would be a strong foundation to prosper in an international business career. Studying international politics, economics, and culture, covering the concepts discussed above, will provide indispensible tools in doing international trades and business. Lastly, is developing the know-how of communicating in foreign languages (179).

Being able to communicate with clients in their mother-tongue would definitely increase the changes of successful business engagements.Works CitedCollins, Karen. Exploring Business, v 2.0.Washington: Flat World Knowledge, Inc., 2014. Digital.