Essay On International Globalization

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1. INTRODUCTION The globalisation of business and commerce has become an increasingly significant reality worldwide, in 2000, the global trade in goods and services reached 25% of world GDP (Govidarajan & Gupta 2000), while in terms of mass-produced goods, more than 100 times international trade multiplies since 1955 (Schifferes 2007). For International presence of Business, globalisation raises a number of important challenges. This essay discusses the main issues affecting globalisation in international businesses, strategic options available for countries, culture and cost of business, risk factor and international theory in theoretical perspective as well as in public perspective. 2. GLOBALISATION IN THE INTERNATIONAL BUSINESS ENVIRONMENT According to Govidarajan & Gupta (2000) globalization in the international business reflected in the increase in cross-border flows of three types of products: goods, services, capital & knowledge and it also growing economic interdependence between countries.…show more content…
The production of globalization seems to be more of a reality. However, the globalization of construction refers to the sources of goods and services to take advantage of the change in factors of productions. Globalization of the market implies the unification of products throughout the world. However, it seems that this type of globalization is mediocre to the reality since the national markets are still present momentous differences (Levitt, 1983). NAFTA (North American Free Trade Agreement), formed between United States, Canada and Mexico. It created world largest free trade area of 450 million people and it is economic power house $20.8 trillion as measured by GDP. The initial proposal of NAFTA came into form in 1984 and was in force from Jan 1’st
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