International Business: Overview, Trade, and Globalization

International Business

Executive Summary
In the presented report overview of international business in being presented. The
mechanism of globalisation involves international trade. In most countries policymakers have
opened up their markets gradually to foreign trade for several years, whether through the
multilateral trading mechanism, expanded regional coordination or within the scope of
domestic reform programmes. More broadly, trade and globalisation have provided many
countries and people with huge benefits. Trade has encouraged countries and economies to
benefit from a more productive scale. It has increased competitiveness, promoted the
dissemination of expertise and emerging technology and enhanced customer preference. But
greater global economic integration did not always prove successful, nor did all parts of
society inherently prosper from trade and globalisation. The report examines a series of
interconnected questions, beginning at considering what powers the geopolitical partnership,
the advantages it offers, the issues it raises and the role played by trade in this increasingly
interdependent environment.

Contents
Executive Summary...................................................................................................................2
Introduction................................................................................................................................4
Literature Review.......................................................................................................................4
Motivation behind the formation of international strategic alliance in airlines foreign
market expansion...................................................................................................................4
Criteria that is utilised by firms in the partner selection process...........................................5
Suitability of international strategic alliance in airlines global expansion............................6
Analysis and discussion.............................................................................................................7
Decision-making criteria that determines the suitability of the use of international strategic
alliances..................................................................................................................................7
Benefits and challenges of using international strategic alliance in foreign market entry.....8
Application of theory in regards to chosen industry..............................................................9
International strategic alliances as an option to foreign market expansion.........................10
Conclusion................................................................................................................................11
References................................................................................................................................12

Introduction
There are several companies that operate in the globalized economy. International
administration refers to the term that involves proactive corporate management at various
locations in order to achieve goals efficiently. Additional skills and experience that go
beyond ordinary competence such as knowledge about various industry legislation, local
custom law, macro-environment considerations, etc. are essential for successful management
of multinational enterprises. In the chosen report, “British Airways” is been take into
consideration (Bas and Sivaprasad, 2020). The respective firm is an airline industry
established in 1974 which is headquartered in London, England, UK. In the present report
several analysis and strategic framework is being displayed in regards to chosen industry and
will highlight various operational activities of the firm conducted in the given operational
market.
Literature Review
Motivation behind the formation of international strategic alliance in airlines foreign market
expansion
According to Bachelor Thesis, 2008, while corporations' motives and intentions for
strategic alliances will vary and adapt through the years, most enterprises make alliances
because they have unique external circumstances. This is several of the most common
reasons why Strategic Alliances should be initiated and established. These are as follows;
Entering new international market: Though manufacturing, completely branches or
joint partnerships have become more convenient in past companies to reach new markets,
they are gradually using strategic alliances. A growing company has the complementary
expertise and services needed for growth, working with local businesses on the target market
or other foreign firms familiar with the political and business climate of a region. In
international markets where the challenge and uncertainty are strong, strategic alliances are
particularly useful. In regards to British Airways, ability to operate in a more secure way in
volatile waters of an unpredictable world would enable an organisation to do so. Many major
multinationals who normally choose individually operating by wholly owned subsidiaries
around the world may opt to place a partner before entering an unknown new market, since
they might need complementary expertise that only a collaborator in a strategic partnership
would offer.