The Rapid Change of International Business
Business, Government and the International Economy (MOD 430) Keith Bevill
September 23, 2014
This paper will discuss five major kinds of drivers, all based on change, which is leading international firms to the globalization of their operations: (1) political, (2) technological, (3) market, (4) cost, and (5) competitive. It will also look at the quote “business is business” in how those mangers might be unable to successfully apply the techniques and concepts they have in their own country to other areas of the world. Being that foreign environment are the same as those in the domestic environment, this paper will explain how they operate differently, and why. Finally, we will describe, why is there opposition to globalization of trade and integration of the world’s economy; and assess the major arguments for and against such globalization efforts. The forces that are leading international firms to globalization of their sourcing must first be examined by defining the influence of external and internal environmental. The term environment used in this text refers to, all the forces surrounding and influencing life and development of the firm; which can be external or internal. External forces are uncontrollable forces over which management has no direct control, although it can exert an influence. Internal forces are the elements which management does have some control of, such as the factors of production and the activities of the organization. The five change-based drivers that area leading international firms to globalize their operations, with an example for each kind: 1. political – preferential trading agreements, progressive reduction of trade barriers, foreign investments by most governments, privatization of much of the industry in formerly communist nations and the opening of their economies. 2. Technological – advances in communication technology, global communication...
References: Bethel University (2011). Business, Government and the International Economy, Boston, IL: The McGraw-Hill Companies, Inc.Dapice, D. (2006, February 2). Unpopular Globalization: Why So Many Are Opposed. Unpopular Globalization: Why So Many Are Opposed. Retrieved September 19, 2014, from http://yaleglobal.yale.edu/content/unpopular-globalization-why-so-many-are-opposed
Please join StudyMode to read the full document