Factors Affecting International Business and Global Trade

International Business

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Thanks to the advent of globalization, the boundaries between nations have blurred
considerably when it comes to conducting business and trade as the entire world has become one
large digitally connected hub. International Business refers to the sum total of business
operations that a firm undertakes to promote transfer of it's goods, services, human resource and
technology across national borders (Anthony, 2019).
This report will discuss a number of complex factors which affects international business
and affects the growth in global trade along with the influence that is exerted on international
businesses and trade by factors of the volatile global business environment.
MAIN BODY
International Business is a complex undertaking which comprises of a myriad of
different operations such as manoeuvring of goods across national borders resulting in imports
and exports, legal contracts which permit organizations to use the branding, products and
expertise of other firms from anywhere in the world such as licensing and franchising and
departmentalization of foreign market analysis and research. The here mentioned processes also
form a robust base for the study and analysis of the international business market and trade
which is used to predict the impact of the global business environment on countries, companies,
general public and world governments.
Global Economy is an interwoven network of economic operations and undertakings
between multiple countries across different continents and it has changed a lot over a period of
time thanks to globalization and all the technical advancement mankind makes over time (Baláž,
Zábojník and Harvánek, 2019). Global Economy is very subjective to change due to it's
multidimensional nature and the existence of a wide spectrum of currencies to facilitate trade in a
global market and change in global economy has a direct relation with increment and decrement
in the volume of international trade. Various factors that affect the global economy and
influence the growth in international trade are given below.
Availability of cheap labour and resources is the framework behind international trade's
basic fundamentals have always been driven by the need to get rid of the absurd costs involved
in running and upscaling a business by taking advantage of low cost manpower and resources