Factors Affecting Global Economy and International Trade in the Business Environment

International Business
Essay

Table of Contents
INTRODUCTION ..........................................................................................................................2
TASK ..............................................................................................................................................2
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................8
INTRODUCTION
Past decades have seen growth in the World financial markets. This boom in the global
economy has been accompanied by the structural changes that took places in the policies of the
government worldwide. This shift was seen from prevalence of closed economies to the opening
up of markets giving rise to open economy. International trade markets and the business
environment has benefited due to globalization of economy which has enhanced the cross-border
trade in goods and services and increase in the foreign investments. Thus, a global economic
landscape has been created which has facilitated an influential growth and developments on the
business that happen globally(Bhambra, 2020). Operating any business on the international
platform is not an easy task, it bring challenges as well as opportunities with it. International
business requires fast production and good quality so that it can grow and develop among the
consumers. This essay will cover in detail the concept of global economy, factors that affect the
global economy and the influence of the explained factors on the international trade. It shall also
cover and define the business environment, how global business environment influences the
growth and development of international business.

TASK
The global economy has taken a shift significantly over the past decades with respect to
how it is organized and how different nations govern it. It has changed the dynamics not just
relating to the movement of people but also has affected the flow of goods and services between
the nations. The worldwide interconnection of economic activities which takes place between
multiple countries on the global level is referred to as Global economy. It is also referred to the
world economy that exists among all the human in the world who set up an economic system that
is interdependent(Grybaitė and Stankevičienė, 2018). These economic activities have both
positive and negative effects on the business and international trade of the countries that are
involved. Global economy seems to be in the control of big banks and large multi national
corporations that affect how it functions. It functions based on International transactions.
Globalization has facilitated migration of people between the countries, creation of global
business value chains, opening of joint ventures on international level, growth in the cross-border
competitions, etc.
There are several factors that are affecting the global economy like Market drivers
which comprises the global customers who have similar tastes and needs driving the
international marketing of goods and services, there is global expansion of the markets due to
growing opportunities this is leading to the economic exchange between multiple nations to
address the demands arising in the market (Hanaysha, 2018). Other factor is innovations in
technologies which is shaping the face of modern global economy because of revolutions in the
industry which is helping in getting affordable and powerful technologies that is making the
global communication easier and faster production of goods and services which is improving the
global economies. This is helping the different business organizations and corporations in
effectively carrying out their work and operating for the global marketplace to address the
international customers. Next factor is Competition drivers because they lead the competitors
towards developing effective strategies that can work on the global level. Market competitions
are also affecting the interdependence of the multiple countries on each other for different
products and services which are not available with them and can be bought from other nation
which possesses them. Creation of global markets have also increased the competition among the
different firms internationally due to the fact that there is growing desire to become a brand on