Unit 5: International business
Task 1: Examine the influences on the growth of globalisation
P1: Explain the importance of factors influencing the global economy
P2: Explain the impact of globalisation on the national economies of contrasting countries.
M1: Analyse the importance of factors influencing the global economy and the impact of
globalisation on the national economies of contrasting countries.
D1: Evaluate the importance of factors influencing the global economy and the impact of
globalisation on the national economies of contrasting countries.
Globalisation
The term "globalization" refers to the increasing interconnectedness of the world. Air travel,
containerized marine transportation, international economic agreements and legal
conventions, and the Internet have made countries more connected than ever before.
International trade, on the other hand, allows countries to extend their markets and gain
access to commodities and services that might otherwise be unavailable domestically. The
market has become more competitive as a result of international trade. As a result, pricing
becomes more competitive, and the consumer receives a lower-cost product.
Furthermore, export is a product that is sold to the global market, whereas an import is a
commodity that is purchased from the global market. Global trade allows wealthier countries
to make better use of their resources, such as labour, technology, and capital. Distinct
countries have different assets and natural resources, such as land, labour, capital, and
technology, among other things. This enables certain countries to produce the same
commodity more efficiently—that is, faster and for less money. As a result, they may be able
to sell it at a lower price than other countries. If a country is unable to manufacture an item
efficiently, it can obtain it by trading with a country that can. Countries improve their ability
to produce the goods in which they specialize. Consumer benefits: Specialization lowers the
opportunity cost of manufacturing, resulting in more goods being produced internationally
and reduced pricing. Lower pricing and a larger number of goods benefit consumers.
International trade, in general, allows countries to concentrate on the industries where they
can be most productive and efficient. As a result, trade frequently raises the living standards
of both producers and consumers. As more goods and services are produced, more
international trade can lead to more employment opportunities.
Trading blocs are groups of countries that sign trade agreements with one another, lowering
trade barriers. They offer the advantage of allowing free trade between countries that are
geographically close. This could result in cheaper prices, greater export possibilities, and
enhanced growth. As globalization progresses, so does the expansion of transportation
systems. As a cluster of service sectors, transportation stimulates goods trade and contributes
to the global economy. It encompasses air, rail, and road transportation, as well as maritime
transportation. There has been a significant amount of money invested in transportation
systems. China, for example, is investing billions of dollars in the BRI project to create roads
and other transport networks. Communication is an important aspect of business
, transportation. Direct email correspondence has been one of the most visible innovations in
business communications. It has evolved from only a way of transmitting a message to one of
workflow management. Technology has made it simple to stay in touch with old
acquaintances and has also aided in the strengthening of business partnerships. Technological
developments in communication modes have facilitated faster decision-making, resulting in
global development and progress. Video conferencing has been helpful in fostering quicker
decision-making. It has, nevertheless, had a negative consequence. There are fewer social
business meetings because there are fewer social interactions, as all meeting are held online
through skype for example. which reduces the level of sentiment and the level of
seriousness.
Moreover, globalization faces a number of challenges, including political and economic
factors. Political factors are government regulations that have a positive or negative impact
on business operations. Managers must have a high level of awareness of political factors.
Current and forthcoming legislation, political stability and changes, freedom of expression,
protection, and discrimination laws are all elements that determine how businesses operate
and function. A good example of a political component is raising or lowering tax rates. Due
to specific reasons, government regulations may raise the tax rate for some businesses while
lowering it for others. This judgment will have an immediate impact on businesses.
International economic factors such as currency exchange rates, customs, and shipping
charges all have an impact on your costs and the prices of your goods. If the cost of selling
your items in overseas markets is higher than the cost of selling them domestically, you may
need to focus on the luxury goods market. Mass-produced goods can sometimes be less
expensive than custom-made items made locally, and your marketing strategy can help you
price your products to gain widespread approval.
Finally, another barrier to globalization is the rise of protectionist economic policies.
Protectionism is a policy of using tariffs, subsidies, import quotas, and other measures to
shield domestic industries against foreign competition. The main protectionist measures are
tariffs imposed by the government. They increase the cost of imported goods, making them
more expensive (and thus less appealing) than domestic goods. Protective tariffs have long
been used to boost sectors in countries suffering from recession or depression. However,
trade agreements often limit rather than eliminate protectionist measures, and appeals for
protectionism continue to be heard when industries in various nations face economic hardship
or job losses that are thought to be worsened by foreign competition.
Factors influencing globalisation
Reasons for conducting business internationally:
Your company may provide items or services that are in high demand but are unavailable in
some parts of the world. You can develop a new base of eager clients without the immediate
fear of competition by expanding your operation into these markets - having access to new
markets. The government of the country may sweeten the deal by providing incentives for
starting a firm, as this will stimulate the economy and maybe produce much-needed jobs.
Task 1: Examine the influences on the growth of globalisation
P1: Explain the importance of factors influencing the global economy
P2: Explain the impact of globalisation on the national economies of contrasting countries.
M1: Analyse the importance of factors influencing the global economy and the impact of
globalisation on the national economies of contrasting countries.
D1: Evaluate the importance of factors influencing the global economy and the impact of
globalisation on the national economies of contrasting countries.
Globalisation
The term "globalization" refers to the increasing interconnectedness of the world. Air travel,
containerized marine transportation, international economic agreements and legal
conventions, and the Internet have made countries more connected than ever before.
International trade, on the other hand, allows countries to extend their markets and gain
access to commodities and services that might otherwise be unavailable domestically. The
market has become more competitive as a result of international trade. As a result, pricing
becomes more competitive, and the consumer receives a lower-cost product.
Furthermore, export is a product that is sold to the global market, whereas an import is a
commodity that is purchased from the global market. Global trade allows wealthier countries
to make better use of their resources, such as labour, technology, and capital. Distinct
countries have different assets and natural resources, such as land, labour, capital, and
technology, among other things. This enables certain countries to produce the same
commodity more efficiently—that is, faster and for less money. As a result, they may be able
to sell it at a lower price than other countries. If a country is unable to manufacture an item
efficiently, it can obtain it by trading with a country that can. Countries improve their ability
to produce the goods in which they specialize. Consumer benefits: Specialization lowers the
opportunity cost of manufacturing, resulting in more goods being produced internationally
and reduced pricing. Lower pricing and a larger number of goods benefit consumers.
International trade, in general, allows countries to concentrate on the industries where they
can be most productive and efficient. As a result, trade frequently raises the living standards
of both producers and consumers. As more goods and services are produced, more
international trade can lead to more employment opportunities.
Trading blocs are groups of countries that sign trade agreements with one another, lowering
trade barriers. They offer the advantage of allowing free trade between countries that are
geographically close. This could result in cheaper prices, greater export possibilities, and
enhanced growth. As globalization progresses, so does the expansion of transportation
systems. As a cluster of service sectors, transportation stimulates goods trade and contributes
to the global economy. It encompasses air, rail, and road transportation, as well as maritime
transportation. There has been a significant amount of money invested in transportation
systems. China, for example, is investing billions of dollars in the BRI project to create roads
and other transport networks. Communication is an important aspect of business
, transportation. Direct email correspondence has been one of the most visible innovations in
business communications. It has evolved from only a way of transmitting a message to one of
workflow management. Technology has made it simple to stay in touch with old
acquaintances and has also aided in the strengthening of business partnerships. Technological
developments in communication modes have facilitated faster decision-making, resulting in
global development and progress. Video conferencing has been helpful in fostering quicker
decision-making. It has, nevertheless, had a negative consequence. There are fewer social
business meetings because there are fewer social interactions, as all meeting are held online
through skype for example. which reduces the level of sentiment and the level of
seriousness.
Moreover, globalization faces a number of challenges, including political and economic
factors. Political factors are government regulations that have a positive or negative impact
on business operations. Managers must have a high level of awareness of political factors.
Current and forthcoming legislation, political stability and changes, freedom of expression,
protection, and discrimination laws are all elements that determine how businesses operate
and function. A good example of a political component is raising or lowering tax rates. Due
to specific reasons, government regulations may raise the tax rate for some businesses while
lowering it for others. This judgment will have an immediate impact on businesses.
International economic factors such as currency exchange rates, customs, and shipping
charges all have an impact on your costs and the prices of your goods. If the cost of selling
your items in overseas markets is higher than the cost of selling them domestically, you may
need to focus on the luxury goods market. Mass-produced goods can sometimes be less
expensive than custom-made items made locally, and your marketing strategy can help you
price your products to gain widespread approval.
Finally, another barrier to globalization is the rise of protectionist economic policies.
Protectionism is a policy of using tariffs, subsidies, import quotas, and other measures to
shield domestic industries against foreign competition. The main protectionist measures are
tariffs imposed by the government. They increase the cost of imported goods, making them
more expensive (and thus less appealing) than domestic goods. Protective tariffs have long
been used to boost sectors in countries suffering from recession or depression. However,
trade agreements often limit rather than eliminate protectionist measures, and appeals for
protectionism continue to be heard when industries in various nations face economic hardship
or job losses that are thought to be worsened by foreign competition.
Factors influencing globalisation
Reasons for conducting business internationally:
Your company may provide items or services that are in high demand but are unavailable in
some parts of the world. You can develop a new base of eager clients without the immediate
fear of competition by expanding your operation into these markets - having access to new
markets. The government of the country may sweeten the deal by providing incentives for
starting a firm, as this will stimulate the economy and maybe produce much-needed jobs.
