Principles of International Business: Globalisation, International Trade, and Investment Opportunities for H&M

Principles of
international business

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Globalisation:..............................................................................................................................3
CONCLUSION ...............................................................................................................................6
REFERENCES:...............................................................................................................................7
Books and Journals:....................................................................................................................7

INTRODUCTION
International business states about the commercial practices that are done beyond the
geographical boundaries of the country. It includes all the global movements of the products and
services and also involves number of employees, technology and rational property like
trademarks, patents as well as copyrights. The following report is based on the company H&M
which was founded 1947 by Erling Persson. Company is multinational brand which specialises
in clothing merchandise. Firm is having their headquarters in Stockholm, Sweden. The
following report will cover about the globalisation, international trade, international business
environment as well as opportunities for the investment for the respective company.
TASK
Globalisation:
According to the view point of Bjorvatn and Wald, 2019, Globalisation is the method in which
the knowledge, ideas, information, products and services dispersed around the world. In the
organisation, it is used in the context of economies which involves the free flow of the
investment with nations, free trade and convenient approach to the international resources that
involves enhanced returns, labour markets and perks of the common products. In context to the
H&M, management has outsourced their most of the manufacturing element to very much
experienced suppliers such as Liz Fashion Industry Limited which is a top rated producing
suppliers for the company H&M in Bangladesh which can support firm in minimising its costs
with low rates of labour, low cost of input, less cost of energy and convenient approach to the
consumers because of the legal as well as barriers in trade. This outsourcing has permitted the
firm to gain more margins of profits at the when they are maintaining high quality and level of
fashion as due to the perks which outsourcing their manufacturing has given. The firm is
concentrating on being highly flexible around the board in all the nation company is operating
world wide. It has permitted them to focus on the trends in specific areas of the world as soon as
they become essential to the consumers with the specific time from the manufacturing with in
only 20 days to the outlets. The international business environment is basically the surrounding
and situation in which multi national firms perform their business activities. It is a multi