Describe about the International Business & Trade of Globalization, and International Competitiveness.
International business & trade consists of the transactions including private and government between the different countries. Private companies enter the international business in order to expand their business to increase the profit margin of the company. The reason for the government to do international business is to earn profit but mostly for the political reasons and to maintain relationship with the foreign countries. International business includes all the business activities, which are done outside the country. The transactions may include trading in the form of commodities, services and resources between two or more countries. The trading of resources comprises capital, inhabitants and skills that are needed for global production of commodities and services (McDonald, n.d.). Globalization has emerged as a decisive factor in recent years. Globalization refers to the method of interaction and incorporation of people and companies of different countries. Globalization is motivated by international and foreign investments (Peng, 2014).
Why do some industries become global while others remain local or regional?
There may be various reasons for some industries to go global and enter into the international markets. The companies operating within the industries may enter the international market in order to increase the sales, profits and to enhance innovation (Biggs, 2013). The key objective of the industries to go global is to increase their growth. The process of expanding the market in order gain global clients is called the economic globalization (Unitarian Universalist Association, 2016).
One of the reasons for industries to grow global is to increase the size of the sales. The companies within an industry that have already done a good business in the domestic market generally want to expand their operations to augment the sales and to earn profit. The entry into the foreign markets has a potential to gain new and loyal customers, which will help the companies in any industry to settle in the international markets. With the entry into the international market the companies within any industries can also use the new technologies, which can facilitate to increase the production (Dahlman, 2007). Some industries remain domestic as they generally are struggling in the domestic market or the industries may be doing well in the local market and does not need to expand their business at a global stage. The other reason for some industries not to go global is that the size of the firms within that industry may be small and they might have insufficient resources to enter into the foreign markets. Another reason can be the financial conditions of the companies as the expenses for market research may be too expensive (Peng, 2014).
What is the impact of the internet on international business?
In today’s world, the internet has a noteworthy effect on the business. The internet has restructured the international market for the sellers with regard to both demand and supply. With the use of the internet, the marketers are able to access through a single communication channel all over the world. With the use of the internet, the companies are finding it easier to get involved in the foreign markets and advertise the products at a global scale. The companies with the use of the internet can boost the sales, thereby can lower the costs. Small-scale industries are also entering into the international business with the application of the internet. The growth of electronic commerce has provided small companies with the opportunity to expand and compete in the international markets. Due to the technological advancement, a company does not have to use any traditional method to entry into foreign markets. One of the reasons behind the rapid growth of the global trade is the advancement of the internet (Griffin & Pustay, 2007).
The internet has turned into an important part of a business. The presence of the customers online is more than the traditional brick and mortar stores. Companies use the internet as it is cheaper as compared to advertising done through print media (Meltzer, 2014).
Which companies and which countries will gain as the internet usage increases throughout the world? Which will lose?
The internet has made a considerable impact on the growth of small companies of the developing countries as the firms are competing with the big companies in the international markets. The internet has made it possible for the small businesses to compete at a global platform. Small businesses can only survive in the international by attracting the customers. The developed countries may have fewer benefits or may lose out to a certain extent as compared to the small businesses. This is because, with the use of the internet in order to leverage the benefits derived from low cost, a number of companies are looking towards developing nations to obtain their requisites by outsourcing (Jagongo & Kinyua, 2013).
Does your college or university have any international programs? Does this make the institution an international business? Why or why not?
The college is having programs related to the international business and marketing, which makes it as an institution for learning international business activities. The college offers the students to develop business skills. The college with the help of business programs allows the students to develop leadership skills in the business activities. The college also offers an opportunity for the students interested to be in the field of marketing to learn new perspectives. International programs will help the students to build organizational leadership, people management, accounting, finance, marketing, information technology and strategic management. The programs prepare the students to work anywhere in the world by giving the students an idea about the global business guidelines and practices. With the help of international programs, the college introduces the students with the concept of international marketing and the global factors influencing the traders as well as teaches the techniques to enter into the international markets.
What are some of the differences in skill that may exist between managers in a domestic firm and those in an international firm?
On the basis of Conference Board research report 2008, the percentage of the managers that agreed to the difference in the leadership between domestic and international firms was 73%. The challenges faced by the international managers are of managing a various group of workers and business activities. The manager of the internal firms adjusts to new cultures and business stressors (SHRM, 2016). The managers of the international firm have to work with workers from various countries whereas the manager of the domestic company has to communicate only to the local people. In case of the international company, the manager has to interact with the foreign clients as compared to the domestic manager who only has to look after the domestic clients. The role of the international manager is to motivate and direct all the employees from different countries whereas the domestic manager primarily has to only manage the employees of the home country. Manager of the international firm has to manage overseas suppliers and dealers. In case of the domestic market, the manager looks after all the supplies from the local suppliers (Rothstein & Burke, 2010). Thus, the variation is skills lies in managing a wider extent of employees and clients for an international company’s manager. They subsequently require enhanced communication, people management, negotiation, along with the skill to understand different customs.
Would you want to work for a foreign-owned firm? Why or why not?
Yes, I do want to work for a foreign-owned company. Working in an international company will help me to learn different perspectives. It will help me to meet people with technical and managerial skills, which will further enable me to grow and learn from the managers along with fellow colleagues from different countries. Working with international managers and employees will help me understand the activities that are involved in the international business. Working in the company would also make me to learn different cultures and customs. The other reason why I want to work in a foreign owned company is the international companies are always looking for innovation. The international companies are generally also technologically advanced compared to the domestic firms. In an international company, I would get to interact with the foreign clients. The learning of the business activities with the experts will enhance my skills, thereby augmenting my business problem solving skills by a considerable extent.
References
Biggs, R. P. (2013). 10 reasons to go international. Retrieved July 28, 2016, from https://choosewashingtonstate.com/wp-content/uploads/2013/06/10_Reasons_to_go_International.pdf
Dahlman, C. (2007). Technology, globalization, and international competitiveness: Challenges for developing countries. ASDF, 29.
Griffin, R. W. & Pustay, M. W. (2007). An overview of international market. International Business: A Managerial Perspective, 1-23.
Jagongo, A. & Kinyuna, C. (2013). The social media and entrepreneurship growth. International Journal of Humanities and Social Science, 3(10), 213-227.
McDonald, B. (n.d.). International trade: Commerce among nations. Retrieved July 28, 2016, from https://www.imf.org/external/pubs/ft/fandd/basics/trade.htm
Meltzer, J. (2014). Supporting the internet as a platform for international trade. Retrieved July 28, 2016, from https://www.brookings.edu/research/papers/2014/02/internet-international-trade-meltzer
Peng, M. W. (2014). Global business. USA: South-Western Cengage Learning.
Rothstein, M. G. & Burke, R. J. (2010). Self-management and Leadership Development. UK: Edward Elgar Publishing.
SHRM. (2016). Leadership competencies. Retrieved July 28, 2016, from https://www.shrm.org/resourcesandtools/hr-topics/behavioral-competencies/leadership-and-navigation/pages/leadershipcompetencies.aspx
Unitarian Universalist Association. (2016). Economic globalization. Retrieved July 28, 2016, https://www.uua.org/statements/economic-globalization
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