International Business and Globalisation

International Business
and Globalisation
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1) Importance and impact of global trade and globalisation..................................................3
4) Demonstrate an in-depth awareness of contrasting international markets in context of
international business decision making..................................................................................5
5) Analyse and critically evaluate pattern of internationalisation undertaken by international
businesses...............................................................................................................................6
6) Critically apply appropriate knowledge, theories and tools to help formulate a range of
alternative solutions to practical problems in planning for different international markets...8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
International business is defined as process of trading of services, technology, products,
knowledge, capital across national as well as global border (Boussebaa, 2015). This includes
transaction among cross border of products and services among one or many countries. On other
hand, globalisation is defined as procedure of integration as well as interaction between
companies, people and governments globally. Both are part of business to enhance their profit
margins at marketplace. The given assignment is based on Airdri which was established in 1974
at United Kingdom. It is global leader in hand dryer development. Products are designed for
recognised and comfort of their low energy, longevity, reliability, reduced noise. The main
purpose of this report is to discuss about importance as well as impact of global trade and
globalisation for business. It also demonstrate awareness of contrasting international market for
decision making along with pattern of internationalisation taken by global firm. The theories are
used for solving problem in planning of several international markets.
MAIN BODY
1) Importance and impact of global trade and globalisation
Global Trade
It is also called as international trade which is defined as process of exporting and
importing products as well as services across global boundaries (Buckley, 2016). Here, when
goods and service are sold to other countries then it is called exporting. On other hand, when
products are brought from other countries then it is referred as importing. In order to expand
business and increase profit margins, global trade should be adopted by business. Some of the
importance and impact of global trade are described below:
Importance- International trade among various countries is significant element in raising
living standards of people, creating of employment opportunities, assist consumers to have large
variety of goods. According to data provided by World Bank, there is rise in GDP from 12% to
30% in 2015 (The importance of international trade, 2020). Some of the importance of global
trade are as follows:
 Greater Choice for Consumers- Global trade focus on bringing several options for
specified goods and services from different places. It provide consumers with variety of
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options to chose products and purchase it. Airdri should evaluate market first and
according to requirement of consumers they should provide them.
 Employment Opportunities- International trade assist in creating employment
opportunities for people which leads to cut down unemployment rates. If respective
organisation want to expand their business at global market then they are creating job
opportunities.
Impact- Global trade provide both positive as well as negative impact to organisation for
running their activities and operation at marketplace. Some of the impact are as follows:
 Dual Economies- Trade resulted into creation of dual economies in underdeveloped
countries that leads exporting sector to developed whereas other economy of country
remain backward. This is negative impact for countries as well as organisation to enhance
themselves at competitive marketplace.
 Increase in Business Opportunities- It is positive impact to Airdri as it can expand
business in other place where they get new skilled and experience employees for
performance, adopting of different culture and tradition at workplace for better results.
Globalisation
It is defined as growing interdependence of nations that results from rise in integration of
finance, ideas, trade and people at single global marketplace (Cantwell, 2017). This integrate and
interact with firms, people and government worldwide. The importance and impact of
globalisation in context of Airdri are as follows:
Importance- There are some importance of globalisation which assist Airdri in terms of
following:
 Foreign Direct Investment- This leads to rise at greater speed rather than increase in
global trade (Cohen, 2017). FDI assist in boosting technology transfer, restructuring
industry and growth of international organisation. It assist respective organisation to
enhance their business at global level.
 Technological Innovation- Globalisation leads to increase in technological innovation
which assist in improving economic output through making process to be more efficient
and efficient. In context of Airdri, they can move for globalisation and adopt
technological innovation which is required for their products and services.
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