What Is The Importance Of Global Business

Executive Summary

This report explains the concept of global business along with benefits and challenges that it faces going globally with a recommendation how firms can make global expansion a success. Global business is the business firms which provide its services throughout the world to their customers. Their main target of global business is to gain maximum profit by using different means of marketing like an advertisement, promotion strategies and using the internet. There are various benefits of expanding business globally such as having huge customers is more beneficial for any firms which helps them to increase their sales volume and generate maximum profit for the business. Additionally, they also have the good market relation in

Importance of Global Business

There are various benefits of the global business. Some of them are as below

2.1 Huge Customers

Global business means expanding business globally which helps them to provide connection and link it with other business parties. Burton states, its expansion helps to attract huge customers who enjoy its product and helps to grow faster around the world. Global firms start studying customers need and their preference in order to open its branches in host countries which help them to attract huge customers (Burton, 2017, online).

2.2 Higher Sales, Higher Income

According to Anderson, global businesses have their companies in many countries and they distribute goods and services worldwide. He states, their main motive is to earn more profit and to increase more sales, the internet is providing them that opportunity to link up and to be connected with their customers by providing them all hours services. Global businesses are using internet as a main source of promotion and they are expanding their products globally due to which they are being able to know customers choice and their image in the market which is leads towards higher sales and higher profit (Anderson, 2017, online).

2.3 Good Marketing

Challenges of Global Business

Having many benefits of global business, it also faces many challenges. Some of them are below

3.1 Political Environment

It is very necessary for companies to look after political environment of the international countries they are dealing with to be sure whether the business dealing is possible or not as political instability can create a problem in a business partnership and with the changes in politics various import restrictions, labour and tax-related issues are also changed because of which successful business operations might be difficult (USPS Delivers, nd, online).

3.2 Business Culture

To run successful business internationally it is very important to learn about the business culture and language of the country which a company is collaborating with to adjust the cultural differences. Applying same business techniques in the international market is not a good idea. It is very important for a company to become flexible and accept the international business practices to become successful globally (US-Pacific Rim International, Inc., 2010, online).

3.3 Restrictions and