Global business

The international economy is the cosmeas economies and refers to the frugal activity of the solid ground. Global influences on Australia: Increasing sphericalization Changing multinational melodic phrase environment Reduction of protection Increased all overseas expansion. Changes in markets: Changes in financial/ cinch markets - finance is mobile and flows easy between countries. Changes in turn back markets - has not been freed up as much as another(prenominal) markets because of increased immigration policies. Changes in consumer markets - consumer markets argon no long seen as the consumers of individual economies, besides as a on the in all world market. Businesses now arrest to submit at the whole global consumers. Drivers of globalization Transnational Corporations - they are the biggest players in the global economy because they merchandise grownup volumes of products to different countries around the world and take emolument of economies of scale. Global consumers - todays consumers realise access to the internet and ante up TV so they are more likely to acquire products from foreign sources. Impact of technology - overdue to improvements of communication/technology and conveying the globe has shrunk in coat because it is a lot speedy to send consider/information. Role of presidency - over the past 20 years, most governments have make an effect to gradually kind out protection. This has besides been through with(predicate) the establishment of many rotund trading agreements.

Methods of external expansion Export Advantages Inexpensive Can net valuable experience overseas Disadvantages Trade barriers Transport costs Possibly uneconomical * overseas Direct investing (FDI) -Greenfield schema - commencing a new business overseas. -Acquisition - merger/takeover -Joint hypothesis - where 2 or more businesses take form to renther. Advantages 1. Direct reassure over foreign facilities 2. Reduction in transport costs 3. meliorate mightiness to monitor position Disadvantages Increased financial risks Exposed economic uncertainties Currency fluctuations *Relocation of performance - this occurs when employment is shut down... If you want to get a entire essay, revisal it on our website: Orderessay

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