Impact Of Globalization On The Business Environment

2094 Words Aug 18th, 2014 9 Pages
Background of the Study
From Japan to Beirut, from New York to London, it is apparent that anything that happens in one corner of the world affects what happens in the rest of the world. Doing business is no more limited to just national borders. Joint ventures, international consumers/customers and global supply chains are gradually changing the business environment. Previous studies in international business have described the internationalization process of an organization as the path it takes to increase its presence internationally (Welch and Luoustarinen, 1988).
Herman, (2008) referred to internationalization as the increasing importance of international trade, international relations, alliances, treaties between or amongst nations. Internationalization is a phenomenon that has existed for a very long time (Forsyth, 1973).
However, because of the recent trends in regarding competition in industries and economic indices, it is not certain how firms gain advantage of internationalization by maximising their profits, as well as their significance to the economy. When more firms try to internationalize, there is an increase in competition. The increase in competition leads to reduced ability of firms to control their ever changing goals. Most firms continuously choose between policies which are changing constantly because of the competition amongst firms.
This research will be focused on the internationalization pattern of firms in the United Kingdom in times of economic…
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