Factors Affecting the Global Economy and Their Influence on International Growth

Global Economy

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Explaining factors affecting growth of international trade in an economy ............................1
2. Interpreting global business environment contributes to the growth and development of
international business ...............................................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES ...............................................................................................................................6

INTRODUCTION
International business refers to buying and selling of goods and services across the
borders. It is the process in which free flow of products takes place. There are several stages of
internationalisation starting from domestic to transnational (Alshare and Sewailem, 2018). Free
trade can be possible with the help of globalisation. It is the process of dispersion of
product,technology and services across domestic borders. This essay describes the factors of
economy which affects the growth of international trade. Besides, process of globalisation and its
drivers are explained. It describes the global business environment which contributes in the
growth and development of international business.
MAIN BODY
1. Explaining factors affecting growth of international trade in an economy
Integrating various cultures, beliefs and goals of distinct economies give birth to the
concept of globalisation. It is integrating various thoughts and ideas which is dependent upon
each other economic system. There are several stages of globalisation which are required to be
followed in order to achieve objectives. In the beginning stage of globalisation which starts from
domestic markets (Barmeyer, Mayrhofer and Würfl, 2019). It is the market in which trade takes
place between the boundaries of same country. For examples,Foxes cafe lounge is working at
domestic level in UK. Another step in globalisation process is international market in which it
spread it wings beyond domestic market and approach expansion of businesses. In this it expands
its operations to different countries and some of the forms of international market are
exporting,licensing, franchising and joint venture. Multinational or multi domestic form of
companies are those in which management of these companies get diverse and manufacturing
takes place in host country. It adopts dynamic approach because it frame its operations according
to the respective company. For instance, AstraZeneca, deals in pharmaceuticals spread its
operations in various parts of the world. Another stage is global companies which uses strategy
based on worldwide approach. It produce in home country and markets its offering globally or
vice versa. Final stage of internationalisation is transnational company which operates on the
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