Globalization and International Business Strategies Report

This report examines the state of globalization in 2019, highlighting key trends and challenges for businesses operating in international markets. It analyzes the impact of the US-China trade dispute, changes in immigration policies, and the slowdown in foreign direct investment (FDI). The report emphasizes the need for businesses to adopt long-term strategies, develop assets in foreign markets, and adapt to cultural, political, and economic differences. It recommends focusing on market selection, building relationships with local communities, and identifying new sources of competitive advantage. The report also discusses the importance of understanding customer behavior and leveraging scalable resources to achieve profitability. The study concludes that effective strategies, including wise market selection, asset development, and community engagement, are crucial for success in international trade, especially given the fluctuating nature of the global market.

State of Globalization in 2019
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Table of Contents
Introduction......................................................................................................................................3
Body.................................................................................................................................................3
General.............................................................................................................................................4
Discussion........................................................................................................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................7
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Introduction
The globalization is considered to provide the businesses with the greater opportunities to
operate across the nations. In last few years, the businesses have shown an increased tendency to
cross the borders of their own host nation and tap the markets in the other nations (De Wilde,
2019). 2017 was a year when the international trade reached the optimum level (Ghemawat and
Altman, 2019). Therefore, the businesses are also showing an optimistic view to operate outside
their home country. Despite the high growth of globalization and international trade in past
years, the business activities in the foreign market have been decreased in 2018, indicating the
need of changing the business strategies to be successful in the international market. In order to
develop the appropriate strategies for the international market, the businesses need to know the
conditions. The current research is significant as it informs the businesses regarding the current
status of the international market. The research is also significant as it helps the organizations to
identify the current strategies to survive in the international market. The research highlights the
key trends in the international market and the ways to adjust with the trends.
Body
As evident from the study, the dispute between the US and its biggest trade partner, China, is
changing the global trade scenario significantly. Because of the conflict, both the nations have
increased the tariffs. Higher tariff in the international market has changed the business
opportunities for many organizations (Ghemawat and Altman, 2019). In the changed market
scenario, there is a significant fall in the international trade. In addition, the nations have started
altering the immigration policies. The smooth flow of human capital is necessary to enhance the
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international trade. In the current scenario, the immigration rate has been reduced affecting the
flow of human capital. As per the research, the international trade continued to grow in 2018
also, although its pace was slowed down. The FDI is an important indicator of the international
trade. The FDI also reduced in 2018 which indicates a drop in the overall level of international
trade.
General
The trade in the international market is shaped by a number of factors. The activities of the
business superpowers are one of such factors (Palanca and Ong, 2019). As the US and China are
in conflict with each other, the entire market scenario is changing. Due to activities of these two
countries, the market in being more challenging for the business organizations. The international
trade also depends significantly on the emergence of new markets. In 2018, there were a number
of new trade agreements which lead to development of the new markets. The multinational
businesses can give importance on operating in these markets to enhance their profitability. The
increased fluctuation in the international market is enhancing the need of adopting long-term
approach among the organizations (Linsi and Mügge, 2019). The current research indicates that
the short-term focus is not going to benefit the organizations to stay in the market. Therefore, the
businesses need to start thinking about long-term goals so that their activities are not impacted by
the market fluctuations. Developing assets in the foreign market is one of the key strategies that
can provide the organizations with long-term benefits (Kramsch, 2019). The businesses also need
to calculate the differences in foreign market due to the cultural, political, geographical and
economical factors. On basis of the market factors, the businesses need to develop strategies that
suit the best with the changing scenario. The businesses need to be wiser while choosing their
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next destinations and the ways to compete with others in the market. The businesses also require
finding out the new sources of competitive advantages in the foreign market. The competitive
advantages offer the most benefits when they are organized in the appropriate manner across all
levels of the organization. Finally, the businesses also need to take initiatives to develop the
relationship with the community. Engaging the community is difficult in the foreign market.
However, the businesses need to use its resources to strengthen the bonding with the community
as it is essential to survive in the foreign market.
Discussion
The recommendations provided for the multinational businesses to operate in the international
market are the most significant part of the research. The current study shows, the many managers
in the foreign market do not have the right perception regarding the international trade and so,
they are not able to make correct decisions (Ghemawat and Altman, 2019). It makes the
strategies more significant as those are enabling the businesses to operate perfectly.
The research also indicates that the multinational firms are earning a small percentage of their
total profit from the international market which indicates the challenging situation in the
international market. The new barriers for the international trade indicates that the organizations
require deciding how to compete, where to compete and how to organize the resources in the
international market (Ghemawat and Altman, 2019). The research shows that a major portion of
the profit of the international firms is earned from only four countries. So, it is necessary for the
multinational businesses to identify the most profitable nations to sell the products. There are a
number of trade agreements in 2018. The multinational businesses can focus on identifying the
new business opportunities from those agreement also. As indicted by the research, the
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businesses require focusing on development of the appropriate strategies to operate in the
international market. The international market is fluctuating highly. Development of the short-
term strategies is not effective to survive in the current situation (Ghemawat and Altman, 2019).
Rather the businesses need to identify the ways which can provide them with long-term benefits.
Leveraging scalable resources can be an effective technique to remain profitable in the
international market. However, the businesses need to be ready to accept the lost scale of
economies to be benefitted from the long-term strategies. The businesses also require keeping
patience to derive the benefits.
The final focus of the multinational businesses in the international market should be how they
can earn the profits from a different market. The nature of customers vary significantly with the
culture, economy and the geographic factors (Ghemawat and Altman, 2019). So, the businesses
should accept the fact that increasing the footprint in the foreign market would not be as easy as
it is in the home country. So, the businesses need to identify and incorporate special techniques
to analyze the nature of customers in the foreign market. Enhancing the engagement with the
society is one of the effective ways to strengthen the position in a market. While operating in the
foreign countries, the businesses need to put special effort to create a strong a relationship with
the community. It can help the businesses to remain profitable for a long time.
Conclusion
Development of effective strategies is crucial to operate in the foreign market. The current
research showed ways to the multinational organizations to overcome the barriers in the foreign
market and retain the profitability in all circumstances. As indicated by the research, wise market
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selection, asset development and enhancing the engagement with the societies are the key to
success in international trade.
References
Ghemawat, P. and Altman, S. (2019). State of Globalization in 2019.
Kramsch, C., 2019. BETWEEN GLOBALIZATION AND DECOLONIZATION. Decolonizing
Foreign Language Education: The Misteaching of English and Other Colonial Languages, p.50.
De Wilde, P., 2019. The making of four ideologies of globalization. European Political Science
Review, 11(1), pp.1-18.
Linsi, L. and Mügge, D.K., 2019. Globalization and the growing defects of international
economic statistics. Review of International Political Economy, pp.1-23.
Palanca, E. and Ong, A., 2019. Philippines–China Relations: Interplay Between Domestic
Politics and Globalization. In The Sociology of Chinese Capitalism in Southeast Asia (pp. 93-
122). Palgrave Macmillan, Singapore.
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