Global Business Report: Internationalisation, Trade, and WTO Analysis

This report provides an overview of globalisation and its impact on international business, examining the drivers behind globalisation, such as technological advancements and political liberalisation. It explores the benefits of internationalisation, including access to new markets and a wider variety of products for consumers, while also addressing the barriers and challenges, such as ethical and cultural considerations, and compliance risks. The report further highlights the role of the World Trade Organisation (WTO) in facilitating smooth international trade and discusses the differences between domestic and international business operations. Concluding with an assessment of the effects of trade barriers on international business, the report underscores the importance of understanding these dynamics for companies operating in or expanding into global markets.

Global Business Aspects
Introduction
Globalisation refers to interrelation and increasing connectivity of the countries in the
world where all the countries and people from various nations interacts with each other in free
manner. In this report there is an explanation of the reasons for globalisation and its needs in
current rapidly changing world. The report will also explain the challenges to internationalisation
and how to overcome them. The report also tells about the differences between domestic and the
international business and what are the effects of trade barriers on the international businesses.
Drivers Behind Globalisation
There are certain groups in which the drivers of globalisation can be classified which are
as follows:
 Technological drivers: The rapid changes in the technology is one of the most important
drivers of globalisation. The development of aviation technology, communication
technology, ship-carriers and containers has enabled the fast pace of globalisation.
Further, development of microprocessors, mobile phones, smartphones and Internet has
led to the globalisation and communication of people across countries.
 Political Drivers: Due to liberalisation policy of many countries the market has seen
lower barriers to international trade across the world. General Agreement for Tariff and
Trade (GATT) formed in 1947 and formation of World Trade Organisation (WTO) in
1995 has opened the doorways for the companies towards the Globalisation.
 Market Drivers: The markets at various locations in the domestic countries may not give
the complete opportunities for growth that initiated the requirement for expansion in
exterior locations. The needs of customers have significantly grown with the availability
of variety of products that are available throughout the world. This created the needs for
markets to expand globally and choose internationalisation.
Benefits of Internationalisation
Entry to New Markets: The first advantage of international expansion can be the advantage to
cover new market areas. The companies get the chances to expand in those areas where
consumers need their products this means that they could provide services to more people and
gain more profits.
 Consumers could get Variety of Products: Due to globalisation and upcoming of new
markets the consumers could get many products that were not available before. The
consumers get variety of products from different shops and this will help them to find best
products for themselves.
 Access to local markets: The companies that look forward to grow their business they
could easily get access to manpower resources and specific skills and knowledge required
for their business. This would help to generate employment opportunities for the people in
those areas.

Barriers or challenges to Internationalisation
 Ethical Barriers: Despite of many rules and regulations regarding the trade restrictions
the companies face barriers related to the ethical business practices. International trade is
an exchange of goods and services across borders freely. Even though the businesses and
trade barriers are imposed in the countries the business faces challenges to enter the
market due to unethical business practices in the business.
 Cultural Barriers: This type of barriers refers to the barriers that arises due to religion,
culture and practices of people in a particular country. The country faces various
challenges but if the company does not comply with the culture and traditions of that
place they may not be able to survive for long.
 Compliance risks: When a company looks forward to establish themselves in a new area
they need to adapt according to the people, government and community of that area. The
company should look towards the countries rules-regulations in order to comply with
their policies and be favourable to community and people.
Domestic Business and International Business
Domestic business refers to the businesses that are established in the country in which it
originally belongs. International business refers to the businesses that are established in at least
two nations among which one is the main country and the other are subsidiary of it. The domestic
countries have their all the operations in a single country and sell their products at various
locations but an international business carries its activities in many countries.
Role of World Trade Organisation in International Business
WTO or World Trade Organisation is the only international association that operates
globally and takes care of the rule and regulations regarding the international trade between the
countries. The main function of WTO is to make the agreements, restrictions, rules, negotiations
and policies regarding the international trade by the countries and ratify it in their parliaments. The
main motive is to ensure the smooth flow of trading activities that is liberal, predictable and
compliances with the rules and regulations of international trade laws. In brief the functions of
WTO are as follows:
 Facilitate smooth operations of trade between the countries by regular administration,
trade, smooth operations of trade between the countries.
 Provide and improvise trade negotiations between the member countries.
 Solving the trade dispute and constraints among the countries by implementing smooth
laws and regulations.
 Cooperation with the International Monetary Fund or World Bank (IMF) to form global
economic policies regarding smooth flow of trading activities.

Conclusion
From the above report it had been identified that there are various drivers of globalisation
such as technological advancements, economic growth, etc. Due to globalisation the economies and
companies across the globe has gained advantages such as chances for expansion, growth of
economies etc. Moreover, in the report it had been identified about barriers of internationalisation
such as cultural restrictions, ethical restrictions, etc. The report had also identified about the
differences between domestic business and international business and role of WTO in international
business.
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85-89).
To assess the enforced regulation and dominant
administration: This is a proactive measure of
monitoring and review. As there should be proper
and regular checking of implemented standards in
organisation.
Effects of Trade Barriers on International Business
There are various barriers related to the international trade that almost every company
faces while moving in a foreign location. These barriers are as follows:
 Tariff Barriers: It refers to the barriers that are imposed on the import and export of
goods and services by the nations to protect themselves against irregularities. Tariff
barriers tends to rise the costs of products and services of the products that are imported
and makes it difficult for the companies to sell their products in the market.
 Non-tariff/Quota Barriers: Government uses various tools to restrict the limits of the
trading on certain commodities or services. This helps to reduce the imports or limit the
imports to save the foreign currency of the country as well as enhance the business
inside the country.