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International Business Environment Assignment (Doc)

   

Added on  2020-12-09

12 Pages3661 Words321 Views
International BusinessEnvironment

Table of ContentsINTRODUCTION...........................................................................................................................1PART 1............................................................................................................................................1Impact of globalisation...........................................................................................................1PART 2............................................................................................................................................2Mechanic of business going Global.......................................................................................2PART 3............................................................................................................................................4Concept of Regionalization and globalisation........................................................................4PART 4............................................................................................................................................7Production strategy.................................................................................................................7CONCLUSION................................................................................................................................8REFERENCES..............................................................................................................................10

INTRODUCTIONGlobalisation is a procedure of interaction as well as integration within companies,people and governmental bodies of different nation take place. Concept of Regionalization aimtoward benefiting the companies that generally operates their business with a particular region.This report is going to critically evaluate that international business is more regional or globallevel business. Because there are several factors which affect working of the organisation atinternational as well as global level. Further, implication of production strategies for chosen levelof business will going to be highlighted in the assignment. PART 1Concept of GlobalisationGlobalisation simply means the process by which companies, government and peopleexpand beyond national boundaries. Its concept have been emerged with the thought ofenhancing trade between countries in order to improve accessibility of products and services tothe customers. It also open- ups variety of opportunity for organisation as they with this conceptthey can reach more number of customers, access cheap resources (employees, raw materials).Concept of Globalisation has been easily accepted people, organisation and governmentbecause it has improved standard of living of citizens. Additionally, Globalization have alsoraised competition among business organisation which encourages them to bring innovation intheir product in order to sustain longer at market. This is beneficial for customers too as thesecompanies tries to provide best quality product to customers in less prices. Impact of globalisationGlobalisation give wide impact on every aspect of modern life and still continue to be agrowing force. Impact of globalisation can be seen in positive manner over the economy ofcountries which influences growth of countries. It has been analysed globalisation have reducedproduction cost of countries as the business organisation can now set up their production plantwhere labours are skilled and less expensive as compared to their own country. Positive impactof globalisation can be analysed with the help of example. Apple has its production offices inChina as the country is successful in providing skilled labour in less salary. This increasesproductive rate of business organisation and allow helps them in maximising their profitabilitywith excessive production level (Meyer and Peng, 2016). 1

It has been analysed that Globalisation have mainly enhanced economic growth ofcountries like China as the country is having huge range of labours which gets ready to work atlow wage rate. This influences interest of many countries establish their business units there inorder to produce maximum of production rate. It also enhances employment rate of Chinabecause its citizens easily gets job in their native country.Globalisation is good for world economy but still it has some problems which includesshifting of local money to another countries, taking away job from domestic workers andmismanagement of companies confidential details. Problems of globalisation are not negligible but as a whole globalisation have embracedworld economy and contributed in development of whole world together in monetary terms.Globalisation has increased competition among the producers as with global environmentcompanies have indulged into ventures and other collaboration for covering maximum marketplace. This have increased options for buyer too as they will now purchase product from thosecompanies who provides best products in less prices (Ferreira and et. al., 2014). This haveenhanced demand for improvement in product and services for companies in order to create morevalue for their customers. As a result, this brings more innovation at market place and also availhug range of products and services to customers which influences them to purchase it (Stahl andTung, 2015). PART 2Mechanic of business going GlobalConcept of globalisation also supports concept of least cost location which mainlysuggest companies on reach market beyond neighbour countries in order to contribute globaleconomies. Concept of least cost location is not only focuses on contributing in global economybut it is also beneficial for their own job role too. Globalisation also supports international supplychain system work that helps in managing all required resources in less period of time withminimum costing. It has been observed that companies performs business activities at globallevel finds several ways to increase their profitability ratio (Falkner, 2017). A2 Membership of World Trade Organisation(WTO)World Trade Organisation is intergovernmental association which controls internationaltrade. This association was commenced in 1995 and has 164 member nations which is also seen2

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