International Business Environment

3863 WordsNov 6, 201416 Pages
[Date] [Date] INTERNATIONAL BUSINESS ENVIRONMENT INTERNATIONAL BUSINESS ENVIRONMENT Globalization refers to the widely flow of production factors within the entire globe in order to understand the optimum resource allocation. Different authors provide different definitions of globalisation with their profound research. According to international monetary fund, globalization increases the rapid and extensive transmission of technology along with international commodity, transactions of service and scale of global capital flow. The mutual independence of economy is also strengthened by Globalisation. Economic globalisation builds international capital, production, technology, market, resources and manpower in order…show more content…
The demand for global service market increases rapidly. The global flow of talents along with the expansion of multinational business are brought in by global technical transmission and economic cooperation. Therefore a multinational company has become a significant participant of globalization. Moreover, liberalization of regional trade and union of cross regional trade are strengthened. Therefore, the traditional pattern of global trade and the form of global economic cooperation are increasingly merged together. The network of global production is termed as a range of enterprise relationship through which the final product or service is produced and provided (Dieter and Linsu, 2002). The relationship is distributed in the link of value chain which further connects the development activities in the world and forms the global value as well as commodity chains. However, despite the rapid development of information and communication technology global production network cannot be operated. In fact the emergence of internet and e-commerce minimized the cost of trade and transportation. On the other hand, different processes of production such as manufacturing, designing, marketing, sales and service may differ in different countries which forms the system of labour division. However, the goal to produce particular production makes these economic activities connected with each other and form cross-enterprise, multi-industrial and cross-border network
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