A Study Of Business Activities That Cross National Boarders And The National Governments Essay

This article relates to our class because it shows how the actions of one organization or country affects many other in international business.

SAIC seeks business from Federal Government Contracts, National Security, Commercial and State & Local Governments supporting Technology Solutions, Mission SETA & Program Support, Simulation & Training, Crises Management & Security and Logistics & Supply Chain.

When governments amongst nations conduct in international business, it exposes them to increased risks and costs through unfair trade and bribery in order to obtain a competitive advantage or power. Mercantilism explains why the government intervention of international business increases the chances of these risks. Mercantilism is the theory that explains, the government will maintain their economy and trade to promote their own domestic industry at the cost of the other country leading to unfair trade (Pettinger,2016). As all governments will not play by the same rules, there is an increase in risks such as unfair tariff policies or bribery in order to gain a competitive advantage. In fact, many governments across nations will use these unfair actions to gain an increase in power. Hill (2015) states that nations like China are striving for a more neo mercantilist policy (a more modern theory of mercantilism where economic power is the equivalent to a trade surplus) to gain a trade surplus. During most of the 2000s, their exports have been increasing whereas their imports have not grown because they have been limited by an import substitution policy. While China is able to benefit from the trade surplus, it is at the cost of another nation where the money that will be paid for those imports will decrease. Therefore, government intervention in international business increases risk like unfair trading to gain a competitive advantage. The government also increases the cost of

Which is cost difference determines the patterns of international trade. Absolute advantage is trade benefits when each country is at least cost producer of one of the goods being traded. In the 1800s, David Ricardo developed the theory of comparative advantage to measure gains from trades. This theory is based on comparative advantage and it states each nation should specialize in production of those goods for which its relatively more efficient with a lower opportunity cost.

The infant industry argument is one of the leading arguments why G20 countries should enact trade protectionism policies, it argues that newly formed industries do not have the economies of scale that the older competitors from other countries may have, thus they need to be protected so that they can attain the economy of scale (Stiglitz, 70-73). This argument illustrates Stiglitz’s point that many times these protectionist policies must stay in place to protect infant industries because the industries “never grow up and demand to be permanently insulated from outside competition” (Stiglitz, 70). Another argument in support of these policies will create more jobs domestically for the country, but these jobs will only be temporary and the jobs that depended on the exportation of goods will be lost. By turning inward and developing industries domestically, countries as a whole will become less competitive internationally. The products that they develop domestically will be hire priced, and will not feel the need to continuously innovate because they have no competition, ultimately people will be paying higher prices for lower quality products. This has been demonstrated with American cars in the 1970s, Ford produced standard cars that had no quality so when Toyota, a Japanese company broke into the American car market with

Multinational Corporations (or MNC’s) are businesses with operations placed in various countries other than the home country where all functions are managed. Traditionally, it is up to the federal government to prevent these entities from abusing their power and violating International Law by implementing regulations. However, because of their transnational status, MNC’s are separate from the government, the state, and society; giving them the ability to act outside of public standards. This has caused problems in the international realm as it frees up opportunity for corporations to abuse their power due to a serious

All countries in the world have various political environment and regimes. Political systems differ in terms of the governance, power and the rule of law. A political regime can be defined as structures, activities and processes by which given countries in the world govern themselves. Political systems can be based on either collectivism or individualism. It is essential for business to look at a country’s political environment as a vital criterion in venturing or expanding the business or company to that country. This is because political systems differ and each has its own form of governance that impacts a business in terms of its growth. International companies carry out international manufacture and activity in that they

Government should not be run like a business because a system that was established to protect and ensure the public good should always put equity before efficiency. Government is inherently different from business, and therefore should run differently.

Foreign governments can have a major influence on the issues of international management of business. In the United States the country operates without very much regulation from the government. In many countries around

We have spent a semester studying the effects of globalization on the world and business from currency exchange to trade policy. Through our discussions and readings, we have learned that globalization is a boon to business as much as it is a curse. In business, strategic alliance agreements help companies further develop process, foster market expansion and surpass competitiors. Although they both exist within the context of society, government and business are two separate entities which share a few features. Governments at even the most basic level exist to protect their citizens interests and to ensure that their needs are being met. While, business can protect the interests of a group or country, their primary reason for existence is to turn profits to satiate their shareholders and validate those who work daily to provide the good/service. However, in order to provide adequately for their citizenry, governments are compelled to think and act a bit more like businesses to ensure that their citizens remain content. India and China are two examples of countries which at least in some areas of federal policy are thinking like businesses and as such has formed, Chindia, what would be called a strategic alliance in business. In 2006, bilateral trade between the two countries reached almost 20 billion dollars and revenue has only increased in recent years (Economist). At first glance it seems that India and China are nearly equally matched;

The level of internationalisation around the globe has grown throughout the years, with advanced technologies the ease and ability to work with foreign countries has also grown. However, firms do not simply interact with each other with no outside party involvement; the government can be seen to play a large role in conducting international business. Governments continuously have the responsibility to act in the manner that they believe is best for their nation; this includes decisions regarding protectionism, which may serve to aid domestic industries but simultaneously hinder international business. It can be seen that governments do not always act in their nation’s best interest and are corrupt which can serve to increase the risks and costs of entering an international business environment. While these are examples in which the government makes international business difficult it can also be seen that the presence of a government is instrumental in creating international business effectiveness, whether this be through their legal system or from trade agreements. This makes the role the government plays paradoxical; as their involvement generally increases the risks and costs of firms seeking to internationalise, whilst simultaneously playing a significant role in creating international business effectiveness.

Evans and Richardson (2007), contend that globalized economic environment is complex and changes from time to time and this places a heavy responsibility on multinationals and other business enterprises. They are forced to adapt in order to deal with these factors for the benefit of their organizations. A company cannot ignore political issues when assessing the business environment in which it operates because it affects government policies such as licensing, regulation and taxation, which have a direct consequence on the activities of a business enterprise (Evans, & Richardson, 2007).

International business today has exceeded more than any person has ever thought it would, countries are doing more trading and importing now than ever. International business can affect everyone, from small business owners to big companies all over the world. A country that comes to mind that does a lot of international business is the United Kingdom (UK). This paper will include the following: the background of the country, economic environment, government policies, international economic integration and business environment, and current events. By the end of this paper you will be able to know everything about the UK and if you want to construct business or take business out of this country.

The extent of interference with domestic regulatory sovereignty, the developing nations succumb to in signing the BITs, is in-fact enormous. In fact, any public policy regulation or law can be potentially challenged by the dispute settlement mechanism (international arbitrations) as long as it affects foreign investors. BITs have been criticized for not complying to a truly liberal economic system by failing to ban the distorting governmental policies such as the protective tariffs or tax incentives for foreign investors. In concluding BITs, the developing nations are indeed trading their State sovereignty for

THE POLITICAL ENVIRONMENT: The critical concern Political environment has a very important impact on every business operation no matter what its size, its area of operation. Whether the company is domestic, national, international, large or small political factors of the country it is located in will have an impact on it. And the most crucial & unavoidable realities of international business are that both host and home governments are integral partners. Reflected in its policies and attitudes toward business are a governments idea of how best to promote the national interest, considering its own resources and political philosophy. A government control's and restricts a company's