International Business: Factors Influencing Growth and Development

This essay explores the factors that influence the growth and development of international business, including globalization and its impact on the global economy. It discusses the barriers and benefits of global trade and analyzes the global business environment. The essay also examines the changing patterns of the economy, the market structure of different industries, and the factors that affect the global market and industries. It concludes with a discussion on the opportunities and threats in the global business environment.

International business.

International business:
International business involves cross border transactions which are related to goods as
well as services between two or more countries which is also known as globalization.
Globalization is grown due to advance in transportation as well as communication technology.
Globalized company will increase global interactions which is come with growth of international
trade, culture and ideas. In respect of that, the essay will explain and give examples how the
growth in international trade is influenced by factor affecting the global economy and analysis
global business environment influence the growth and development of international business.
Globalisation is the world which is used to describe and explain growing or
interdependence of the world economics, culture and populations which is brought about cross
border trade in goods and services. In the international monetary fund, it is identified in four
basic aspects like trade and transactions, capital investment movements, movement of people and
dissemination of knowledge integration (Doh, Luthans and Slocum, 2016). There are number of
indicators present that shows the growing importance of globalisation, such as capital
movements and foreign direct investment, international trade and economy activity of
international firms, employment and internationalism of dissemination of technology. The
indicators on capital investment and foreign direct investments. The economic globalisation is
increases economic interdependence between various national economics that are across world
through a rapid increase in cross border movement of goods and services, technology and capital.
The key indicators of globalization includes international trade, technological
advancement as well as international investment. There are explained main drivers of
globalization are technological driver, market, cost, competitive and political driver. The
phenomenon not only has economic consequences, but also has social, political, cultural and
legal aspects (Bedianashvili, 2016). Technology is gives shapes and set the foundation for the
modern globalization. Technological driver, With the help of technology businesses are able to
make innovative products and services for company to meet success at global market. The main
and rapid growth of internet is the use of the latest technological driver which are creates global
e business and e-commerce. Market drivers, as the domestic markets become more and more
effective which are creates opportunities for positive growth of the company to select for
overcome these situations (Three types of trade barriers, 2018). Like customer needs or
opportunity use global marketing channels and transfers marketing for extent incentives to

selected internationalization. Cost driver, is sourcing costs vary from country to country and
global company can take effective and valuable advantage with this fact. Competitive driver, in
the global market having global inter company to increase competition. This creates the strongest
interdependences among the countries and high two-way trade which is support to business at
international level.
Barriers of globalisation are gives impact on the business at global level. Those are here
explains in proper manner such as technological barriers, ethical barriers, economic barriers,
cultural barriers and legal barriers. Trade barriers includes in economic because trade barriers
affect directly economic of country in negative manner (Tallman, Luo and Buckley, 2018). This
barriers' government induced restrictions on international trade. This includes tariffs, import and
export licence and another factors. The tariff is related world of tax and non tariff is barriers to
trade, can take many forms. This may includes subsidies to domestic producers, import quotas,
special packaging and labelling regulations. For example: increasing rate of tax on imported
goods are creates impact on the business.
Non Tariff is barriers which is restricted trade measures other from the direct imposition
of tariff. This may includes quality and content requirement for imported goods and subsidies to
local producers. The currently higher cost of production is recently faced by company in
international and global aspects. Quotas are the restriction which is limited the quantity or
monetary value for the specific goods and services (Costs and benefits of globalisation, 2019).
For example: if companies are not use licence for products to promoting then company face
issues. Like if company is used licences than it is allows to companies or customer to import
various quantity of goods and services. On the other side, Ethical barriers is the exchange of
products and services across the national borders. In the most of the country, it is represented a
significant part of gross domestic products. In addition to that, some argues that the increasing
the integration of financial market between the countries which are leads to the more consistent
and seamless trading practices.
There has various benefits for business by globalisation which are effective and valuable
for companies (Hamilton and Webster, 2018). This has includes various elements which are
greater free trade, increased integration of global trade cycle, greater movement of labour and
increased communication, improved transport, effectively reduce barriers between the countries.
These are develops potentials for business to reach importance to larger and loyal customer

base. The main benefit is frees trade which is the way for country to exchange goods and
resources. This means countries can specialized in producing products and services in effective
and valuable manner. For example: lower prices for customer is more effective for attract more
customers but cost is structured unemployment. Increased economies of scale is help to increase
production levels of companies at global manner.. This help to increase average cost for
customers in effective manner. The globalization is enables to produce goods in different parts of
the world. Those benefits are effectively viewed as utilitarian providing the best and effective
possible benefits for largest number of people. Another one benefit, is to expanding into
developing markets which includes demand for new products and services, lower labour cost,
less expensive natural resources and another products. This is most effective and valuable for
businesses to getting success in international business era. This help to increase investment
which has also enabled increased level of investment.
Economic growth reflects the increase in market value of a product or services which are
produced by an economy over the time in effective manner. For example: Company Apple is the
multinational company which is operates their business in various country as well as use
advanced technology for produce product. This help to increase production capacity of company
to increase economic growth of company in effective manner. This increase capital goods, labour
forces, technology and human capital etc. that highly contributes to the economic growth of a
country (Chasdi, 2017Furthermore, features of economy growth are higher rate of growth per
capita outputs, increasing factors of productivity, structural transformation of economy, higher
rate of social and political transformation.
Changing patterns of economy:
There are includes some changing patterns of economy which are international trade,
competitive advantage, trade intervention and controls. Pattern of international trade: It is the
transfers of goods and services between the various countries. Goods are purchases into a
country which are called imports and those sold to another are called exports. International trade
pattern is facilities to developing an overview about the types and kinds of products traded and
countries involved in trade. Thus, international trade pattern reveal vital information about
macro environment and related challenges. International trade is gives impact on the business
and economic growth which is created negative impact on the business. This affect to economy
by rising to demands and supply or price are affected by global, events. Changes in international

trade is leads to an increase owner income, relative for excess those factors of production and
export the products for economic growth. In addition, it is provided a basic and effective
framework for country selection and evaluation for international businesses.
The competitive advantage includes the cost of labour, cost of capital and natural
resources. Less developed countries have benefits from globalization by leveraging competitive
advantage in labour cost. oil business operates their new business in other country like US but,
recent days they increase 10 per barrel this generates result in a deterioration of trade balance of
the oil importing within the developing countries by 1.2 % of GDP (Kasemsap, 2018). Trade
intervention, internationally free trade which is implies unrestricted flow of products across
national borders. This offers ample number of advantage to international businesses.
Government erect trade barriers and intervene in another ways which restricted or alter free
trade. Tax tariff is imposed by government on import products are creates negative impact on the
businesses in international ways. Trade interventions may indeed raise prices for customers on
particular products and services at market place. Depending on the underlying conditions of
goods and services, this may also reduce unemployment, causes of wages for raising and
reducing growth of debt. Trade intervention is influenced trade which is the barriers of the
country and business. This creates negative impact on the businesses in global market.
Analysing global market and industries:
In the global business era having various and ample numbers of industries which are
working for earning money and various benefits from international market and businesses. The
global businesses having market structure which is provided information to team and expertise to
work and shape market structure and better understood the local and global markets issues.
Those are creates various effectiveness for effective working and its style to working with
companies. This includes and refers with number of firms in market and their market share and
other various features which may affect the level of competition between the firm where they
operate in market. At the global market and business era having effective and valuable goals and
objectives for working under growth (Pikhart, 2017). In the global business era market have
effective and valuable power to working. This increase is broad based across the industries and
country, and drives with the highest mark up firms in each economic sectors.
In respect of that here is select two business industries like manufacturing and service
industry. The market structure of Auto-mobile industry is oligopoly. This is closely connected

with engineering and industrial design for working in effective manner. This industry changing
the form an oligopoly to monopolistic competition. In the present market structure of automotive
industry is an oligopoly, as that includes few big firms and massive barriers to entry due to cost.
The market consideration is used to smaller firms account for the largest of the total market. For
example: Toyota company follows oligopoly market structure which is characterized of
moderate barriers to entry, price maker and others. On the other side, retail company at global
level is also had oligopoly. For example: Wal mart is an oligopoly because it exists in this
market structure. This characterize by existences of few suppliers in market. This creates higher
market power for companies at global level to create positive and effective markets concerns for
businesses.
Global business environment includes a number of factors like political, legal, economic
and more, that gives both opportunities and threats for international industries. Socio-cultural
environment: is individual purchase a significant proportion of the manufacturing industry
When confidences level of customer is lower when they tend to scale back purchases. At the
international level culture is different and have various culture in which companies needs to
make focus on all the culture and this is difficult for company to maintain this and produce
products. With the help of this company is able to attract various customers which are belongs to
another. On the other side, at country have single culture which is help to produce single
products. The opportunity for company to make good product with single culture.
Political and legal environment include the new international division of labour in the
conjunction with the new pro market political economy, which has also brought important
changes to interstate system. Under the no deal exist tariff barriers would be the considerable
with the 10 % tariff on the product like a car and 4.5% tariff on their parts. The cost are affecting
competitivenesses and its advantage for industries (Bedianashvili, 2016). the laws and
regulations are different at every country because company have needs to make products and
services by following laws. In respect of that, Toyota company operates at various level at the
global level company has to follow healthy and safety act as per global business. This creates
threat for business to not managed effectively. On the other side, in the country they are able to
make rules as per single country regulations. This creates opportunity for business to protect
their employees.

Economic and financial environment: is an international trade in the industry
domestically produce products and services for business to creates more effectiveness. The
financial environment of manufacturing industry in UK is gives the highest contribution like
11% of GVA, 44% of the total export business (UK manufacturing, 2016). Strength and
opportunities of oversees economics and to exist in low carbon technologies. Threat is creating
unknown impacts in business any time.
CONCLUSION
From the above study, it had been concluded that the international business has faced
various barriers and challenges within the global business environment. The growth of
international trade has created and help to keep price down through imports gives assess of used
technology and ideas. The developed more effectiveness for businesses at global level. This
helped to create better allocation of resources, pressures of competition for export market and
competitive from inputs.

REFERENCES
Books and Journals
Bedianashvili, G., 2016. The Global Business Environment, European Integration and the
Cultural Potential of Social-economic Development of Georgia. Globalization &
Business.
Chasdi, R. J., 2017. Corporate Security Crossroads: Responding to Terrorism, Cyberthreats, and
Other Hazards in the Global Business Environment. ABC-CLIO.
Doh, J. P., Luthans, F. and Slocum, J., 2016. The world of global business 1965–2015:
Perspectives on the 50th anniversary issue of the Journal of World Business:
Introduction to the special issue.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Kasemsap, K., 2018. Mastering business process management and business intelligence in global
business. In Global Business Expansion: Concepts, Methodologies, Tools, and
Applications (pp. 76-96). IGI Global.
Pikhart, M., 2017. Managerial communication and its changes in the global intercultural business
world. In SHS Web of Conferences (Vol. 37, p. 01013). EDP Sciences.
Tallman, S., Luo, Y. and Buckley, P.J., 2018. Business models in global competition. Global
Strategy Journal. 8(4). pp.517-535.
ONLINE
Costs and benefits of globalisation. 2019. Online. Available through:
<https://www.economicshelp.org/blog/81/trade/costs-and-benefits-of-globalisation/>
Three types of trade barriers. 2018. Online. Available through:
<https://quickonomics.com/three-types-of-trade-barriers/>
UK manufacturing. 2016. Online. Available through:
<https://www.pwc.co.uk/assets/pdf/ukmanufacturing-300309.pdf>