Globalization : A Competitive Development And Enhancement Is Affected By Its Domestic Environment

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INTRODUCTION In the world of today, firms are constantly sourcing for ways to carry out their activities in an easier, safer and faster environment and still be able to achieve their set goals and objectives. Today, globalisation has given rise to a number of things- transportation, infrastructure, telecommunication, technology which has continued to increase the needs and demands of the consumers. Organisations and countries struggle with the fast rising demands and usually always strive to succeed more than their counterparts which lead to competitiveness. A firm’s competitive development and enhancement is affected by its domestic environment. Therefore, it is important that a firm first seek out which of these factors would be…show more content…
Free Trade This occurs internally and externally with no regulations binding it. A major reason for free trade is the easy flow of trade without bans and tariffs affecting it (actionaid.org, 2015). It is a settlement also internally by the leaders not to impose barriers on exchange of goods both import and export (Urata, 2002). This was also said to be the passage of imports and exports without coercion from government (Thrasher & Gallagher, 2008). Due to openness, Developed countries and others of grade have risen in GDP. In 2011, 14% of the EU labour force relied one way or the other on trade to the rest of the world which saw a surge of about 50% from1995. America and Japan now employ over 4.6 million people in Europe due to foreign direct investments (EU, 2014). In regards to trade there is a flow of innovations, investments and concepts which helps bring about growth in productivity and developments for the people and industries usage. AIMS OF FREE TRADE  Gives rise to cheaper trade by cutting down custom duties.  Accelerate trade by removing barriers  Open new markets for commodities.  Support sustainable development by providing support, clearness and discussions on societal then ecological matters (EU, 2014). ADVANTAGES OF FREE TRADE Free trade has been valuable to businesses that engage in international competitiveness. These can be seen as follows (EU, 2014):  Ensures people get improved products and at considerable prices 
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