A study into the domestic and international business conditions that financial managers must carefully consider in carrying out their responsibilities
Economic globalization is the process during which businesses quickly expand their markets to include global clients. Such expansion is possible because the technological breakthroughs throughout the 20th century rendered ecumenical communication more facile. Travel & internet mean it is possible to manage a business from a remote location. Now that businesses often have the option of going global, they assess a range of considerations before beginning such expansion.
Scope of international business is very wide. There are not only merchandise exports, but also trade in services, licensing and franchising as well as foreign investments. Domestic business pertains to a limited territory. Though the firm has many business establishments in different locations all the trading activities are inside a single boundary.
Business goes internationally for a variety of reasons; majority is allowing expansion or growth of company. Whether company is searching for new markets abroad or hires international employees, the international strategy helps expand and diversify business. International business can benefit both nations and firms. Domestic business has fewer benefits when compared to the others.
Most of the enterprises look forward to international markets for their exaltation. Introducing new products internationally can expand the base of customer, revenue and sales.
There are some companies go globalization to find the sources of labour alternatively. Companies go to global countries for technology assistance, lower-cost manufacturing and other services in order to maintain the competitive advantage.
Some companies go globalization for some distinct resources, which are difficult to find in their own domestic markets, or that can be acquire better price internationally.
Some companies go globalization to acquire new ideas and expand their work force. A work force consist of cultural differences and different backgrounds can bring new concepts and ideas to help company grow. For example, GOOGLE recruits individuals from difference backgrounds because it's a competitive advantage that drives benefits and innovation customers.
Some companies go globalization to diversify. To selling products and services in multiple countries for reducing the risk while exposing in a single country might affect by economic and political instability.
Sharing of Technology
Some companies go globalization to supply a sharing of the latest technology that is innovated in difference firms across the globe which will improve the mode and quality of their production.
Now a day many companies either have competitors or operate in an international market. Since the cyber has come about, the world become globalized and have not boundaries. International business are a major factor at many companies, and business people need to be yare to deal with. There are so many differences in culture between all over the world, and even more preponderant between regions. Around the world, different forms of currency are utilized as a substratum for commerce. Currencies can vary by country and region. There are some currencies, like the United States currency, are apperceived across the globe and can be habituated to trade for other currencies and are a substructure for international business. Other more diminutive currencies like the Macau dollar (MOP) have little usability outside their country. The top currencies in the world are utilized as a store of value and are utilized of international commerce.
Weigh the benefits for your company doing business abroad against the potential pitfalls. Poor infrastructure such as roads, telecommunications...
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