International business environment Essay Example | Topics and Well Written Essays - 2750 words

International line of work environment - Essay ExampleThe paper describes the process of globalisation that results in mutual satisfaction of world(prenominal) frugal relations as man- do and natural barriers fall. The process itself may confound positive as well as negative effects on countrys economy. The process grew strength in the early 19990s. globalization offer opportunities that entail effective resource allocation and so higher per capita incomes. Faster integration to the carcass can be promoted by new methods and ways of production driven by change in technology. globalisation has made it easier to divide production into several sub-processes, so labor-intensive sections of the production process could be gotten from abroad. This atomization made international trade in intermediate goods a growing substantial mark of international trade. The rapid change in international demand and supply conditions has besides bringing economies together, made relations more comp osite. Another issue that has made international trade complex is the weight of the approaching markets in the world economy has become substantially more prominent. Although globalization entails various dimensions, it usually refers to economic ties and processes. Economic globalization pertains the expansion of production, consumption, trade, savings, and investment made to markets beyond regional and national ones. For countries that atomic number 18 developing, the assay of growing inequality linked with active participation in the global economy attributed to institutional weaknesses relating to creation poor. (Prasad 2003, p.4). This paper tries to bring out a fair view of globalization pointing out the benefits and risks that globalization has for countries that are developing. The paper looks at the evidence and controversies that can be used against and in favor of globalization and similarly the policy options and prospects. It withal tries to assist Palomia by looki ng at its economy and reporting the risks and benefits of globalization. Gains from globalization Benefits from Globalization can lead to advances, in efficiency and gains, in economic wellbeing. Trade improves division of labor as countries that specialize in a given field gains comparative advantage over the rest. This is a very(prenominal) vital part of economic empowerment as a country like Palomia may have the advantage on something over the others. Deeper relationships and penetration of international markets will enable and encourage and motivate consumers and producers to quarter the benefits of economies of scale. The competitive international market will also reduce profits of monopolies. This incentivizes businesses to seek innovations that are monetary value efficient and advances what they sell. Gains in efficiency also should bring advancement in economic growth and so resulting in higher per capita incomes. This could be good prospects for developing nations as it i s able to make more capital to stir more growth. Globalization also has assisted many poor countries in the world extend to higher growth rates and minimize the number of citizens living in absolute poverty. For consumers, globalization or international trade expands the range of good services available. The rate at which goods and services get innovated is also encouraging making the trade dynamic. The participation of countries that are still developing in the process of globalization can allow them better apply their comparative advantages. This making them bring in advanced technologies, perplexity experience and foreign capital. It is also prosperous for eliminating monopolistic characteristics and toughening market competition (Bigman 2002, p.10). Risks involved in globalization While providing more growth opportunities for countries that are still growing, the globalization process also poses enormous risks. To begin with, economic globalization has indeed expanded instea d of reducing the