This assessment will cover following questions:
- Discuss and give examples of how the growth in international trade is impacted by the factors affecting global economy.
- Evaluate how the global business environment impacts the growth and development of international business.
- Explain global business environment with example of how the growth in international trade is affected by factors of global economy.
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