Global Importance Of Going Global Essay

Introduction: The Importance of Going Global
• For U.S. companies, 70% of total world market for goods and services is outside the country
• Coca-Cola earns 75% of operating income and two-thirds of profit outside of North America
• For Japanese companies, 90% of world market is outside the country
• For German companies, 94% of their market potential lies outside Germany

Part A: Political Arguments There is no doubt that in the international business environment free trade plays an important role in globalization. In other words, globalization refers to the application of free trade in an international scale through international business liberalization. Countries remove their trade barrier policy in order to implement trade liberalization. As a result, in a country where the industry is not developed foreign manufacturers gain the market with their cheap price and better quality. Although the main assumption that countries gain from trade is accepted, but no any political system completely supported free trading due

Insurance for one industry might briefly spare nearby occupations, yet that turns out to be a poor manual for arrangement. For example, jobs in high-wage countries threatened by import from low-wage countries. Even America tried to prevent outsourcing of jobs to emerging economies. In the event that yield of household substitutes rises, even a bit, promoters take note of that this additional interest may be a boost to facilitate monetary development, as rising pay prompts rising utilization. In a business downturn this may be briefly genuine, however few supporters of duties look for their inconvenience for just a short-run time period, until the repeating interest for venture products and buyer durables