Globalization In International Business Essay

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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.
There are two types of globalization according to Hill (2005) one is globalization of production and the globalization of market. …show more content…

STRATEGIC CHOICES FOR INTERNATIONAL BUSINESS
Perlmutter 's (1969) highlighted the importance of a global preemptive approach to business. However, the best approach to deal with the world markets in argument. In the context of international strategy, international business is not the ultimate interests of the company. The countries create strategic options for availing benefits from international trade. E.g. NAFTA, the main motive of the NAFTA is to make North America more competitive in global market and to reduce the trading costs and increase business investment.
It also increases the international presence of the company, the evolution of the multi-frequency local strategy or translation. According to this approach, companies have branches in different countries, which creates dependency on one another (Briscoe and Schuler

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