Summary- International Business

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Despite this frenetic activity, the global retailing market is still very fragmented. The top 25 retailers controlled just 16 percent of worldwide retail sales in 2000. However, forecasts suggest the figure could reach 40 percent by 2009, with Latin America, Southeast Asia, and Eastern Europe being the main battlegrounds. First, as barriers to cross-border investment fell during the 1990s, it became possible for retailers to enter foreign nations on a significant scale. Second, many of these retailers faced market saturation and slow growth in their domestic markets. Third, once Carrefour started to blaze the trail, other large retailers such as Tesco and Wal-Mart began to follow suit lest they arrive too late and find a country already dominated by other foreign retailers. Fourth, these retailers believed that by expanding internationally, they could reap significant economies of scale from their global buying power,many of their key suppliers had long been international companies. Fifth, all these retailers held a strong position in their domestic markets, primarily because they were very efficient operations. INTRODUCTION Globalization refers to the shift toward a more integrated and interdependent world economy. Globalization has two main components: the globalization of markets and the globalization of production. For businesses, this is in many ways the best of times. Globalization has increased the opportunities for a firm to expand its revenues by selling around the world and reduce its costs by producing in nations where key inputs are cheap. Since the collapse of communism at the end of the 1980s, the pendulum of public policy in nation after nation has swung toward the free market end of the economic spectrum. Regulatory and administrative barriers to doing business in foreign nations have come down, while those nations have often transformed their

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