Theories and Outcomes of International Trade Lorrie Fontanilla American Intercontinental University Dr. Lauretta Will MGMT220-1103B-05 Abstract This paper takes a pragmatic view at the theories and patterns of international trading amongst countries. The underlying theme is; are countries dependent on globalization through trading in the form of imports and exports which is a force to be reckoned with in today’s economies? This piece will also consider several principles and reasons why international trading and foreign investing are vitally important to individual businesses in countries across the national border. The driving force for trading globally is motivation and is it sufficient enough to keep our countries in reaching our respective goals or are global strategies the catalyst for trading in order to assure a nation’s utility? We will explore the aspects of international trading and globalization to understand why countries trade or barter.
Thus, the subject of cross-border activities can be products, services, capital, know-how and labour. The process opening these transnational gates is called globalization. Market globalization is referring to the interconnectedness of national economies and the growing interdependences of byers, producers, suppliers and the government in different countries. Figure 1 gives an overview of the world’s trade flows and shows the immense interconnectedness. Figure 1: Interconnectedness: network of world trade Source: Dicken (2011) Figure 2.4 Introductory, this paper gives a short insight on the general service sector business, along with an outline of the main characteristics of the consulting industry as a
People have been crossing international borders for years. There have been many international businesses that are commercial but now companies are forced to be more competitive when it comes to seeking out countries and reduce trade barriers. Companies have to be more competitive when investing. Every day we are surrounded by imports and exports. Imports are goods or services that enter the country.
Presentation International Marketing Product Decision International marketing involves international companies, who conduct a significant proportion of their business in foreign countries, and the multinationals that design, produce and market their products and services directly. The Product Anything that can be offer for sale to a market is called a product. And for that product to rise to an international level, there are some touchstones it needs to comply with: its nature and origin, its features and qualities, its benefits and performance, etc. Product standards Global competition is fierce and must companies are looking for new ways to differentiate themselves from competitors using product standards as a means of differentiating their product offering in the international market. Hence, a certification of the product as a mark of superior quality is vital.
During the last decades firms have increasingly committed themselves to global markets. Globalization confers access to foreign markets, cheap labor, and other advantages. Yet, foreign entry does not come without costs. When firms diversify beyond their national borders, they have to adjust to a foreign national culture. Whenever firms draw other organizations into ‘the walk to the unknown’ (Johanson and Vahlne, 1977), for example through a joint venture (JV) or an outright acquisition, they have to contend with both a national and a corporate culture.
Introduction International trade allows for goods and services to be traded across borders around the globe. It gives consumers access to products that may not have been available before and is a process that encourages competition. There are three theories of competitive advantage that affect our employment decisions and communities. While these theories may be similar, they in fact, have clear differences that set them apart from one another. Theories of International Trade The first theory of international trade, mercantilism, suggests that it is in a countries best interest to maintain a trade surplus, to export more than it imports, (Hill, 2009).
There are two basic types of strategy to take into account, the first one is differentiation and the other one is cost-leadership. Differentiation strategy can be defined as: when an organization wants to have the newest and best product and technology. Cost-leadership strategy can be defined as: when the cooperation produces goods that are already on the market but is more cost effective and more efficient. Either structure can be used to assist an organization to reach its project goals. Organizations should implement a design that assembles around the organization mission statement.
A certain degree of standardization takes place and the demand of the products appeared elsewhere. As demand has increased, overseas markets were imitating those products at a cheaper labour and overall cost. The U.S. firms were forced to perform production facilities on the local markets to maintain their market shares in those
BUSINESS GLOBALISATION ASSIGNMENT Critically analyse the reasons for the growth of globalisation, with reference to the advantages of it for businesses, suggesting ways in which they could bring about cultural social and economic change and discussing the effects on their employees in particular and the worldwide workforce in general. By Salim Mohammad Wali MBA ID:_________ Word Count: 1604 Globalization is the creation of interconnections between countries. It is a process wherby barriers (physical, political, economic, cultural) which separate regions of the world are reduced or removed completely. This process hence stimulates exchanges in goods, services, money and people. Globalization helps countries to specialize in goods and services they are very good at and allowing goods and services they are lacking to be provided by those countries that have excelled in them.
The evolution of supply, demand, and environmental factors is driving companies toward operating as if a homogeneous worldwide market existed in their industries. Economic "globalization" is a historical process, the result of human innovation and technological progress. It refers to the increasing integration of economies around the world, particularly through trade and financial flows. The term sometimes also refers to the movement of people (labor) and knowledge (technology) across international borders. There are also broader cultural, political and environmental dimensions of globalization that are not covered here.