Understanding International Business and Globalization

This report provides an in-depth analysis of international business, focusing on the features of globalization that affect contrasting businesses. It highlights the importance of interconnectivity, trade blocs, and the impact of globalisation on businesses. The assignment also explores different types of finances available for international businesses and contrasts between operating in stable and unstable economies.

International business

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
D1 Impact of globalisation on the business............................................................................1
M2 barriers of two contrasting business who are operating internationally..........................3
M1 analysing the support that is available in different international business ......................3
P4 exploring the trading blocs on international trade............................................................4
P3 explaining the main features of the globalisation that effect the two contrasting business. . 4
P2 explaining different types of finances available for international business ...................4
P1explainig the two business operate in the contrasting international market......................5
CONCLUSION................................................................................................................................5

INTRODUCTION
International business is all about doing business of product and services at
global level. This report will cover the impact of globalisation. It will discuss about
Barrier for two contrasting business which are doing business internationally.
Further more, it will tell about the support is available for the contrasting business
that are doing the operations internationally. It will study about the trading bloc in
international trade. It will discuss more about features of globalisation with the
basis of the MacDonald and KFC. The finance will be from which sources in this
type of trade. It will explain the two business operating in contrasting market.
TASK 1
D1 Impact of globalisation on the business
Globalisation means working and interacting with people, companies
worldwide. It is doing trade out of the country. It can be negative as well as
positive. Both impacts are important for the business (di Giovanni and et.al., 2018).
Positive Impact
 Competition - globalisation is maximising the competition. It may related to
the product, price, target market, technological changes. If KFC is doing any
change In process then it makes the working easier. When its products are
producing at less cost than chances of grabbing the market share are more.
After increase in competition the companies has improved in the standards
with benefit ting the consumer (Beugelsdijk, Kostova and Roth, 2017).
 Rise in technology - launching of the new technology due to globalisation
only. In competition one thing matters that makes the work easier. Better the
use of technology will give the suitable result. From this firm move a head
from the competitors (Delios, 2017). Through this our growth in sense of
the quality. Less time in looking after the machines. Many organisations are
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large and for their working they need the more advanced machines. By using
the quality machines the output will be more.
 Employment - due to this the number of jobs has increased. There is
requirement of the more people to work. Many opportunities are there like
outsourcing, software support, marketing, accounting etc. In different
countries the jobs are there for people but skilled persons are needed. In
developing countries the chances are more (International business, 2018).
Negative impact
 Fluctuation in prices - due to globalisation the prices are fluctuating. Product
s are sold in lower prices due to competition. Countries like china is selling
the product at low prices and that's why there are many firms which are
forced to follow that. But the advantage is more customer are attracted to
the company. Many entities which are not which are stand in situation fail
from the market. By this they are covering the whole market. It is the duty
of the to built the position in market so that in any circumstances they can
survive. Low price product reach the mass audience (di Giovanni and et.al.,
2018). From these chances are more increase the more recognisable firm in
the market. Mostly prices are hike at the time of inflation. All things became
expensive that time. There are many entities try to reduce the cost of the
firm. The sales are more affected in this.
 High employee turnover because of job security - there is always the risk of
jobs insecurity. Many a time the market situation are not good. In that case
employees are out from the organisation (Delios, 2017). Many skilled
person seek job in foreign countries. Persons are more in outside the
countries and this creates the less job in developing countries. In countries
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like India manufacturing of the product at lower rate (International business,
2018).
M2 barriers of two contrasting business who are operating internationally.
Obstacles are more when doing business internationally. These are
 Legal issues – when the KFC is doing the business in another country, laws
must be aware by the company. Additional taxes can also be charged in the
country. There are many things which has to take care of that like if
systematic and proper advice is not followed than penalties and fines are
also charged(di Giovanni, and et.al.2018).
 Language issues – business is done in another country then its languages
must be know. Otherwise, the country has to face the problem of translators.
 Cultural barriers – there are many countries which have different culture,
many a times due to cultural differences make the things worse.
 Political problems -many business person don't have faith in the
international business then it can cause lost of customers. Stability of
political condition must be checked before establishing the business.
M1 analysing the support that is available in different international business
There are many benefits which are doing the business internationally.
Support of the government. Generally the company's helping hand by the
government. Relaxation in the taxes, financial help, flexibility in rules, import
duties are reduced(Delios, A., 2017). Where the new business is launched, in that
case government also help the country by providing the space for firm. For
recognition local community has accepted. The organisation firstly has to
popularise the product and for that spending of the excessive money can be there.
The local investors are also helping the entity in making the business fully
established.
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P4 exploring the trading blocs on international trade
Trading blocs means it is the type of intergovernmental agreement. In this
regional obstacles is eliminated from the participating states. The role of trading
blocs are economic integration which makes the different economies to work in the
integrated manner. It also helps in moving of the material from the one country to
another by relaxing the tariff barriers and non tariff barriers. This support the
country in full utilisation of resources because no country is has full natural
resources. The easily transfer of resources make the trade increase. There are many
employment opportunities which are generated through this.
P3 explaining the main features of the globalisation that effect the two contrasting
business.
The globalisation helps the societies in making the interlinked. When they
are interconnected then only they are making more business to reach at global
level. It supports in making the production at global reach. Globalisation affects
the business by creating a global culture(Beugelsdijk, S., Kostova, T. and Roth, K.,
2017). In this all the products are sold in international market. Through this
introduction of new technology is made which makes the work easier. In which
country the globalisation has accepted, the development is made at global level.
Employment opportunities are increased. In this all type of people are working
together which shows integrity.
P2 explaining different types of finances available for international business
There are different types of finances from which the business is running.
Some of them are debt finance from which the borrowed amount is used by the
business. In large business the various options of funds are available. Banks also
provide loans for this type of the business. Equity finance can be the one way
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through which the firm can get money to earn business. There are many things like
debentures ,assets, investors who are ready to invest ib the business.
P1explainig the two business operate in the contrasting international market
There are two business one where the economies is stable and where
business can grow but there are which the economy which is not so good to do
operating business(di Giovanni, and et.al.2018.). In growing economies the
business can be more successful but in the unstable economies the chances of
losing are more.
CONCLUSION
From this report it is concluded that all there are different sources of fund which
are needed to source international business. The business are operating in the two
contrasting market. Feature of globalisation are discussed. Trade blocs in
international trade. The impact of globalisation on the business. Barriers of
operating in international business.
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REFERENCES
BOOKS AND JOURNALS
di Giovanni, and et.al.2018. The micro origins of international business-cycle
comovement.American Economic Review. 108(1). pp.82-108.
Beugelsdijk, S., Kostova, T. and Roth, K., 2017. An overview of Hofstede-inspired
country-level culture research in international business since 2006. Journal of
International Business Studies. 48(1). pp.30-47.
Delios, A., 2017. The death and rebirth (?) of international business
research. Journal of Management Studies. 54(3). pp.391-397.
Online
International business. 2018. [online]. Available through
<https://www.internationalrelationsedu.org/what-is-international-business/>
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