International Trade And Trade Agreements

1396 Words Oct 8th, 2016 6 Pages
Global business is defined as the buying and selling of goods and services by people from different countries (McWilliams & Williams 2010). It also has to do with international trade and trade agreements. Corporations that own businesses in two or more countries are called multinational corporations (McWilliams & Williams 2010). Most of these global businesses main headquarters are found in the United States or the United Kingdom. Expanding to a global market is quite a complex process and businesses have to take many different aspects into account such as: social/cultural, legal, political, economic, environmental and technological factors. These components help create an attractive business climate. Different businesses operate differently to assess these relevant factors. Strict Import & export rules and regulations also need to be followed. Entering the global market also allows for larger competition between other similar businesses and to create trade agreements.

There are many rules and regulations when entering into the global market and with each country having different requirements you must fulfil. These must be followed or the business cannot enter into business in that country. Global businesses have trade barriers, which are government-imposed regulations that increase the cost and restrict the number of imported goods (McWilliams & Williams 2010). Different types of trade barriers include tariff and also non-tariff barriers such as: quotas, voluntary…
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