They can try to market environmentally friendly technologies internationally. The advantage of this market is that it is expected to grow more rapidly than the overall economy. The business environment is greatly influenced by global forces and trends that tend to define how organizations interact with customers and respond to competition. From advances in technology to religious fundamentalism, business culture has come to be defined by events dictated by these forces, leaving companies with little choice but adapt to their dynamics. Globalization has brought with it both uniformity and fierce competition.
How does the globalization influence the international business? Globalization is primarily an economic phenomenon, involving the increasing interaction of national economic system through the growth in international trade, investment and capital flows. A rapid increase in cross-border social, cultural and technological exchange is part of this globalization phenomenon. Globalization has impacted the present world in numerous ways. These are: reduction of trade barriers permitting free flow of capital and services across national frontiers; creation of environment conducive to free flow of capital; formation scenario allowing free flow of technology among nation states; and development thrust in which free movement of labour can take place
The opportunity to make profit by selling products in a foreign market is attractive, especially if expansion in the home market is difficult because of slow market growth, market saturation, or regulatory obstacles. In many cases business growth would be possible only through “stretching” the business globally and enter in new markets. International exposure also enables a company to build its international reputation, which is important for the company especially if it is an industry leader. Profitability also depends on competitiveness, so international expansion is a way of reducing costs in a competitive international market. Access to international markets allows increased scale of production, leading to lower cost per unit.
A growing international presence will, therefore, can make it easier in the future to continue expansion opportunities this is because of the increase brand recognition. This will helps a business to be able to employ staff locally. 3. Sales will definitely increase when more customer are introduced to business: - it is rather simple to recruit an international sale force these days. From freelancers to distributorship to the web, marketing can happen at local level better than ever before in almost every part of the world.
' The integration of the workforce in developing countries into global system of production is already raising living standards, improving working conditions and creating more jobs in those countries. ' '(Samuel J. Palmisano,2006:133) Another advantage, from businesses perspective, is that companies have now access to larger markets and therefore to can sell their products to other countries. That means more chances to make profit and win a place in the global market. Furthermore, enterprises have the opportunity through globalization to search for sources with cheap raw material, which leads to cheaper labor. This is also called also outsourcing, and is the most common step for many companies.
They also go global in order to meet customer needs and to become more competitive. Global companies are those that have a global market presence, supply-chain infrastructure, capital base, and corporate mind-set. The global market is not an
Globalization is good for economy. First, Enterprises can operate internationally, and production can be produced internationally. Similar to poor countries like Africa, although they are poor, they have a lot of cheap labor, other countries will make their goods
1.0 Introduction Most firms are eyeing on the global marketplace to improve their competitiveness. There are however many controversies on the most effective marketing strategy in the international market. There is growing importance of international marketing and various issues must be considered in order to successfully compete globally. A global marketing strategy encompasses countries from several regions in the world and coordinates a firm's marketing effort in markets in these countries. There is therefore need for companies to adopt more coordinated global marketing strategies once they have a significant presence in several countries and regions.
Along with rapidly increasing globalization, international business has become a popular topic and has drawn the attention of business executives, government officials and academics. At the international level, both economic globalization differences between countries stand as opportunities and challenges to international businesses. Globalized business environment has to be considered when making international strategic decisions and in managing ongoing international operations.
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.