International Business: Factors Influencing Growth and Development

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