How Does Globalization Affect International Business

International business is large activity that related with private transaction, governmental, business that begins from two or more countries. The competition affects all of firms which large or small is more complicate and diversity more than domestic. Globalization is integration nearly of peoples and countries that has been reduced problems and breaking down of barrier to the flow of services, goods, capital, knowledge, etc. The globalization on the international business is a diversity of business activities across national border. Business manager needs to know about globalized business environment for making strategies decision ongoing international so there are so many reasons of globalization extent to multination such as economics
The main business need in interacting between the sides by side, transportation, innovation, combined with free zone, provide goods and services. According to Frankel (2000), there are two things can affect to economic globalization that change in cost of transportation, communication in the privateand policy barriers can reduce to investment and trade to the public sector. Innovation and technological drive costs of communication and transportation steadily lower. For example, in the north part of America want to create market trading around the world to trade their goods and services for profit and revenue, low cost of hiring position. The financial institutions are use and trading agreement in regional to compel poor counties is to enterprises of state privatization, reducing tariffs with integrate and environmental relax of standard labors. The way of larger in profit to the investor can affect low benefit to the laborers. Second, politics culture has lead by national at political system national government takes responsibility to maintain the security and economic welfare of their group of people and the protection of human right and boarder environment. The environment of global economic changes can affect to global economy and the international business, increasing of political activity make upper level of global of economic, Under the control of globalization can take place by politic that make its above the standard of the state of political. For example, the European Union has concern to the intergovernmental organization such as the World Bank international, the monetary fund and the world trade organization.According to Global policy forum (2005), European union where political integration join with many countries about the business for decision making because every nation in the world has connect more than one and protect problem when