Global Business Aspects: Drivers, Barriers, Importance, Trade Blocs, and Role of WTO

This article discusses the various drivers and barriers of global business, the importance of international trade, the impact of trade blocs, and the role of WTO in international business. It also explores Rowlinson Knitwear Ltd's experience with globalization.

Global Business Aspects
Drivers behind Globalization
The production of service and goods has inclined across the global because of globalisation These are
different forces in globalisation that will affect the Rowlinson Knitwear Ltd.
Cultural Exchange: The cultural exchange plays a crucial role in globalisation as people visit at
different palaces across the global so that share its culture and practice with each other. In context to
Rowlinson Knitwear Ltd, The respective company will experience the rich culture of Europe that enhance
the understanding of different consumer.
Improve Transportation: The transportation factor has contributed to globalisation as
international business require effective transportation such as airlines, large vehicles and ships. With
references to Rowlinson Knitwear Ltd, the given company will require effective transportation that will
help in delivery the consignment on time.
Natural Resource: The natural resource is the most precious elements of the organisational
growth namely water, gas, oil, coal and petroleum. In context to Rowlinson Knitwear Ltd, the respective
company will require cotton, petroleum and animal skin in Europe to improve the business.
Technology change: The technology factor is a key factor of globalisation as technology
advancement help to internal company to enhance the operational activity in effective manner. In relation
to Rowlinson Knitwear Ltd, the respective company will have used ecommerce website such as Ebay,
Amazon and Alibaba and many other.
importance of international business
The internation trade is a business transaction across global as it is an importance for business as
well as country growth. These are various benefits of international business that will mentions.
Growth Opportunities: The company can full utilisation of resources as it increases the growth
and their profitably and increase the country's GDP.
Market Expansion: The international business is an open platform for expansion in different
countries. It help to spread out its business activity and explore the fresh market for providing the more
products.
Cost advantage: The internation business help in taking cost advantage over their rivalry
companies by manufacturing the commodities in one countries and export them into
different countries.
Barriers-
The internation business require understanding of county's language and culture so that
company will face challenges to understand the foreign languages. The Rowlinson
Knitwear Ltd will face difficulty in handling the global team as manager who live in
London and he try to manage the entire team who live in Europe with different time zone
and different technology tools. The Rowlinson Knitwear Ltd will face barriers in following
the mandatory government's policies such as taxes, public safety and labour law etc

Difference between domestic and international business
Domestic Business International Business
The domestic business is a business transaction
within the geographical limitation of a country.
The international business is business transaction
within beyond the geographical limitation of country.
In domestic business, The company understand
the nature of consumer such as legal system,
behaviours , taste and practice of local
costumer.
In international business, the company understand the
nature of consumer in different counties.
The local business only follow the rules,
policies, taxation system of only one country
The international business have to follow the different
countries polices and rules to expand the business.
The local business require local currency to
settle down the supplier and vendor
The international business have to require the maintain
the international currency to settle down the internation
vendor and supplier
The domestic business involves less risks as it
operate only one counties
The international business require high risk as it
involves foreign exchange, political factor, social
economic
Role of WTO in international business
The World Trade Organisation play an essential role in the international trade as It help to reduce the
difficulty in international trade. The WTO has different role such as administration, implementation and
maintain the smooth trade activities among counties. The WTO renders a forum that help in trade
negotiation among different country's members. The world trade organisation will help to Rowlinson
Knitwear Ltd as it settle the disputes among members of countries through create the regulations and rules.
The main role of WTO, the cooperation with world bank and IMF (International Monitory Fund) in order
to making international economic policies.
The impact of trade blocs in international business
The trading blocs protect the domestic economies from rivalry as it is a type of
inter-governments agreements that help to eliminate the tariff barriers so that international
company smoothly operates its business. The international trade agreements is opened up
fresh opportunities for exports and maintain the competitively price imports from different
countries. The trade blocs will help to Rowlinson Knitwear Ltd to free trade in Europe so
that consumers get high quality cloths at nominal price. The trade blocs will important for
Rowlinson Knitwear Ltd as it provide local raw material at nominal price in Europe. The
trade block play a crucial role in explore a new marketplace so that it help to make new
price. The trade blocs allow to companies to invest in different countries as it increases the
job creation and upgrade the skill of existing employees. The trade blocs make ensure to
maintain the healthy competition in multinational company and help to small scale company
to protect from large scale company.
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