The Phase Model Of Globalization

In an international market, there are a large number of compotators of Planet Preserve products. Here the level of competitors in foreign market is more then in domestics region. And it is complex to make the Planet Preserve product the bestselling product in international market. The Planet Preserve business needs more experience and skills, knowledge to become mature enough to come in international market. First Planet Preserve business should target to earn profits and money from domestic market because when you export the product in international company, the product will become more expansive for the customers in new country due to sales tax and other commissions.

The final fallacy is based off the traditional concept that in order to export, firms are obligated to sell to foreign countries. In contrast to what is traditionally considered, modern economies dominate global value chains. Each organization adds value to different components of the chain even though a firm is not frankly engaged in the selling process to a foreign buyer as it may be part of the chain that exports. According to the authors the global value chain contains three sets of firms. Tier 1 consists of specialized suppliers for specific parts that rely on tier 2 for components.

o Economies of scope - achieved by sharing resources common to completely different merchandise. Unremarkably cited as "synergies." o Augmented market power (over suppliers and downstream channel members) o Reduction within the price of international trade by operational factories in foreign markets. Sometimes advantages will be gained through client perceptions of linkages between merchandise. For instance, in some cases natural action will be achieved by mistreatment identical name to market multiple merchandises.

The factory system assisted the economy to grow because the previous system was falling behind as it tried to provided for the great demand of goods. The rising middle class also helped for the factory system because those people could afford more expensive goods like cotton ore china. It occurred to traders that they could mass produce goods in greater quantity at a cheaper price, they could find more consumers and make a higher profit. Cycle works as follows: increased consumer demand prompts entrepreneurs to invest in machines to speed up production, and thereby increase profit. Profit from increase production used to invest further innovations and inventions.

So companies are trying to find cheap ways of sourcing goods & services from all around the world. For example most of the business which are based on developed countries shifting their manufacturing plants to other non developed countries by focusing the cheap labour cost & some are using third party suppliers from different countries due to the low cost of raw materials (education-portal.com, 2014). • Globalization of Markets This is all about focusing on global market rather than focusing on selling goods in home country. So the market globalization is the reduction of barriers & restrictions to the international trade & it will enable the companies to make their business strategies globally by considering different cultures & different business conditions of the world. So it shows us the entire world as a huge one market & people of the world are starting to convert into a common business solution.

Illegal immigration has aided the nation’s economic growth by allowing businesses to prosper as the illegal immigrants have provided cheap labor and long hours of hard work. Businesses are not providing insurance both medical and retirement plans for their illegal workers. This results in a lower production cost for the companies and lower prices of goods and services for everyone. Despite the fact that illegal immigrants may not contribute directly to the economy in the aspect of paying taxes like income tax, they contribute to the economy in the form of sales taxes. They do this by purchasing the supplies they need in the same way native citizens or legal immigrants do in order to survive.

International trade is also knows as a globe trade which give the country opportunity to expands their markets for both good and services that otherwise may not have been available in other countries. This type of trade also give advantages for world to rise the economy in term of prices, supply and customer demands, affect and are affected by global events. All of the good and services can be found on international market. International trade will involve two types of process which be export and import. Export is a function of international trade in which the goods produced in a country will be sent to another country for future sale or trade.

Introductions International trade refers to a country trade goods and services to another country. International trade open up the world potential market to increase producer sales quantity and increase competition on foreign country. apart from these, international trade will create job opportunity and hence reduced unemployment rate as well as positive balance of payment. however, it might bring negative effects to a country as well, therefore, government play an important role in implementing trade restriction on imported goods in order to prevent imported goods destroy the domestic market or at certain extend, monopolize the market. 94 words A ) Discuss the forms of restriction on international trade.

Some positive effects according to the businessman can be that “free trade or trade without any restrictions allow firms from different sector of industries in various countries to specialize, in the safe knowledge that they would be able to export their excess produce, in producing goods where they have the most comparative advantage or the least comparative disadvantage.” This increases efficiency as firms are new able to divert resources, which have alternative uses. Some negative effect may be due to dumping. According to World Trade Organization (1), the application to international trade of the discriminating power of Monopoly is called dumping. “When firms expand, they achieve economies of scale, which increases their competitive advantage by increasing efficiency their ways of allocating resources, reducing the average costs of their produce. This enables such firms to sell their products at a price lower than that of the domestics firms in a country that has engaged in international

Thirdly, local business will have a lot of difficulties because people tend to like import goods or foreign goods more than local products. The trend of globalization put developing countries into a hard competition. Globalization allows countries in the world are free in trading without any barriers about tax, not only that the cost of domestic and imported goods are not too many differences cause major competition about commodity (The Impact, n.d.). That force developing nations have to make their product quality better, improve design of goods and reduce production cost. The next point is the pressure on the natural environment.