INTERNATIONAL BUSINESS ENVIRONMENT

International business environment

Over the period, the global economies have received significant developments that have resulted in the establishment of the significant growth in businesses. Specifically, the past two decades have been characterized by significant development that has ensured that the economies experiences significant levels of sustained growth in the development of the businesses operating in the economies. This development and attributes of sustained growth in businesses has been extremely beneficial because the establishment of regional integration is largely dependent on this depiction (Alma T. Mintu-Wimsatt, 2000). The aspects of regional integration and globalization have emerged as the important attributes that enhances the operations of business activities. In the wake of these realities, the establishment of international business encompasses the cooperation between the global nations and the integration of regional economies. In reality, the conduction of business opportunities in the world market has adopted the consideration of enhancing regional participation and attributes of specialization and division of labor because each nations participating in the global market must ascertains the productivity of the nation. This consideration calls for the establishment of the specialization where the nation specializes in the attribute of producing the commodities that it is best suited to produce. The consideration and the initiative of consideration international business environment consider the aspects and the contributions of significant factors. The establishment of business environment on the global perspective requires the establishment of stability in the government policies, the consideration of political stability and prevalence of economic theories and policies (Coade, 1997). Furthermore, the considerations of cultural and social aspects are also beneficial in the establishment of international business environment. The establishment of international business environment also considers the attributes of technological development because the establishment of technology is an ideal platform for initiating development of business ideas. Development of technological attribute has been considered as ideal environment because it enhances the aspect of innovation and invention of new ideas that leads to the advancement in the business development.

Some of the developments of global business include the attributes of global Forex markets where billions of dollars are transacted on daily basis. This market is one f the financial markets in the global perspective where large sums of money are exchanged and the other consideration of the global market includes the attributes of Euro markets that involve the usage of euro currencies even though the market is conducted outside the European geographical areas (Downing, 2006). The consideration of initiating development of the activities is the result of the development and the consideration of the pervasiveness rate in which the regional growth and development has been initiated. The development of regional integration is one of the significant attributes that has fostered the establishment of international business environment. The establishment of regional integration is extremely critical because it considers the development of regional and national understanding between global nations and this attributes of regional understanding is extremely beneficial for the establishment of ideal business environment. The consideration of business environment has been of immense significance because this leads to the development of the economies and further results in the establishment of the global economy. In this regard, various participants of the global economies have instigated measures that will significantly enhance the establishment of ideal global business environment. Finally, the establishment of ideal international business environment has been enhanced by the consideration of the benefits accredited to the conduction of business (Farok J. Contractor, 2002). Over the period, the interdependency between the global economies has been on the rise and the performance of the global economies largel7y depends on the establishment of international business because the proceeds of international business leads to the enactment of organizational performances thereby leading to the development of the gross domestic products (GDP). Analysis of the reports about the establishment of international business has noted that international business is the term that is used to refer to the collective form of transactions that encompasses private businesses, government transactions, sales and investments. The aspects of logistics and transportations are also included in the considerations of the international business and these factors results in the development of ideal business environment for the global nations. The establishment of ideal business environment is critical because it leads to the enhancement of the performance of the business organizations involved in the aspect of international businesses (Downing, 2006). Analysis in the establishment of international business denotes that the establishment of an ideal business environment does not only consider the attributes of potential business growth but is also considers the establishment of easier access to funding, the enactment of legislations that is more effective and significantly leads to the development of entrepreneurial skills, culture and support for the business incentive. In reality, this depiction is significantly viable and is one of the beneficial attributes of development that enhances the creation of ideal international business environment. Finally, another significant factor for consideration about the establishment of international business environment is the attributes of business growth and development. Over the period, various national economies have initiated measures to help them improve on the aspect of growth because it is purported that growth of business incentive results in the growth of business environment. However, the growth and development of the business environment on the global perspective depends on the consideration of initiating development of the factors that enhances the performance of business incentives. In the wake of the realities, various nations and international organizations have embarked on the capacity of creating ideal business environment (Farok J. Contractor, 2002). This incentive results in the establishment of ideal market where profits are maximized, the organizations operating in the market considers realization of the social responsibility and the operations of the markets encourages the participants to invest in the establishment of critical tools and incentives that leads to the creation of the profitable ventures.

The scope of international business

Analysis of the scope of international business is based on the idea of focusing the resources on the global perspective. The regional resources are collected together and significantly focused to establishment the development of the global market. Normally, the consideration of business activities considers the operations of the firms and organizations in the economy. However, the establishment of international business considers the introduction of the participation of the firms and other organizations and corporations in the economy and their impacts on the global market (Ian Brookes, 2010). The establishment of international business is largely considered as the global business that considers aspect of trade between different countries. The establishment of trade between different nations is conducted with the establishment of trading blocks. Over the period, the aspect of trading blocks has been adopted as the consideration for enhancing the development of the goods and services. Some of the trading blocks that have resulted in the establishment o ideal international environment include ECOWAS, NAFTA and the EU. The establishment of these trading blocks has initiated distinct measures of creating ideal environment for business that includes the attribute of lowering tariffs and taxes. In reality, taxes and tariffs are expenses of the business and result in the establishment higher profit and easier transfer of goods and services.

The scope of international business considers the attributes of international marketing that involves conduction of awareness on the global perspective and this aspect has been confirmed to influence the operations of many forms in the global market (James P. Neelankavil, 2009, Lawrence E. Koslow, 2000). International marketing is extremely beneficial because majority of the regional regulations. Majority of the firms operating in the global market are the multinational corporations with presence in many countries across the globe and headquarters in one country. In this regard, the multinational corporation must undertake the establishment of ideal marketing strategies to ensure that the global population embrace the usage of these goods and services, in addition the consideration of encouraging the performance of international multinational s also considering the contributions of culture and social structure. In this regard, it is evident that the establishment of the aspects of culture and social structure are immensely beneficial in the establishment of ideal business environment (Leslie Hamilton, 2012). Because of this realization, the international organization must consider the attributes of analyzing the attributes of culture and social set up of the national economies in which they integrate because the attributes will enhance development of the national firms and organizations. Significant information served by efficient market is the consideration of timely and accurate information that are passed on the market participants. In addition, market segmentation is also critical and it results in the consideration geographic and gender segmentation. This highlights the target for the global organizations and further results in the creation of success brands in the successful brand market (Michael R. Czinkota, 2010). The interpretation of the reports from independent researchers has denoted that international markets have more potential than local markets and this call for the establishment of ideal business environment to enable adequate exchange of goods and services. The scope of international business is extremely wide and it includes the consideration of foreign exchange, global human resource, international finance and investments and finally, international marketing.  The establishment of foreign exchange is one of the attributes of trade that enhances regional integration and the consideration of this aspects result in the establishment of regional integration between the nations involved in the exchange (Morrison, 2002). One of the considerations that increase the participations of international trade is the consideration of specialization and the aspect of comparative and absolute advantage. The attribute of comparative and absolute advantage calls for the advancement in regional integration and establishment of understanding between the nations involved in the exchange o goods and other commodities. This depiction of business environment is based on the consideration of based on the fact that different nations have the capacity of producing different commodities. In this regard, the differences in technological knowhow, geographical terrains and the climatic conditions lead to the generation of different types of commodities from different localities. This calls for the aspect of trade because the nations must exchange the goods they do not produce with the goods they produce efficiently in their economies (Onkvisit, 2008). The establishment of efficiency is one of the attributes that has enabled development of both regional and national integration. The consideration has been considered effective because it results in the development of critical standards leading to the development of ideal international standards for the conduction of businesses based on the establishment of the business environment.

The development of the needs for the conduction of international business includes the need to achieve higher rates of profits and the limited aspect of home market. Analysis conducted has revealed that the home market sometimes does not offer the incentive for growth for the organizations in the regional economy (Peng, 2010). Another significant consideration for engaging in the international market is the consideration increased competition in the home market that has the effect of reducing profits of the business firm’s and organizations in the economy. Based on the above factors, the development of international business is extremely beneficial but there are ideal factors that must be enhanced to consider reaping significant amount of benefits from the engagement in international business. Based on the factors, the establishment of international business environment is critical for the organization participating in the global business ad this leads to the establishment of the regionasl integration where the countries involved enjoy the privilege of benefiting for the products produced for different markets. Over the period, the global regime has witnessed emergence of significant development in the national economies that attribute to the enhancement in the economies of the nations comprising the global economies (Yu, 1999). In this aspect, the developments have resulted in the establishment of significant development of the economic output of the nations. In the wake of these realities, the global economies have realized the necessity for engaging in the developmental projects and creating ideal business environment for the global business because this consideration will result in the development of the global economy. Some of the attributes that have result in the development of the global economies buy encouraging the establishment of ideal business environment includes the following.

Global economic stability

The establishment of global economic stability has been considered to be an extremely significant aspect because it results in the development of the global economies. The establishment of economic growth is extremely vital because it results in the establishment of ideal business environment thereby leading to the establishment of international business environment (Riad A. Ajami, 2006). The cases of international global crisis and the European financial crisis were extremely detrimental for the establishment of international business environment because of the contribution in reducing the performance of business in various economies and further contributing to the aspect of reduction in the rate of economic growth (Taylor, 2012). In fact, some economies experienced the aspects of decline in growth while some economies experienced stagnation and all these conditions were detrimental to the conduction of international business because the aftermath of the financial crisis resulted in the emergence of inflation. Inflation is detrimental for the performance of the economy and it results in the establishment of poor international business environment and the conditions f inflations should be eliminate din the market by employing the usage of ideal economic corrective policies. Therefore, the establishment of globalization is extremely critical for its contribution in enhancing development of the global economies. It is also beneficial because it leads to the creation of ideal business environment for the international business organizations and corporations.

Political stability

The aspect of political stability is extremely beneficial for the establishment of applicable environment for the conduction of business. Analysis of the reports has revealed that the conduction of business on the international market is based on the consideration of political stability. The depiction of global political situations that disrupted the establishment of global business environment includes the aspects of war between United States vs. Iran, United States vs. Iraq and finally, Israel vs. Palestine. The period during the reign of this political instability was extremely detrimental for the establishment of international business because the business environment was significantly altered with (Wilkinson, 2010). The aspect of political stability has the attribute of encouraging regional integration and the attribute of regional integrations form that basis in which international business is based. In this regard, the establishment of political stability is one of the conditions necessary for the establishment of international business environment because it encourages interaction between different nations thereby encouraging the aspects of comparative and absolute sharing of commodities (Ruth A. Pagell, 1999). The establishment of regional integration is one attribute that is solely enhanced by the aspect of political stability therefore; the attributes of political stability must be upheld by the global administrators because it significantly enhances the development of international business environment.

Cultural and social aspects

Over the period, the aspects of social and cultural aspect have been on the fore front in determining the establishment of international business environment. Analysis conducted on the establishment of various national economies has revealed the attributes of social and cultural effects are significantly different between different nations (Riad A. Ajami, 2006). Therefore, the establishment of the international business environment should consider adopting the type of social attributes and cultural practices that encourages the performance of business. Culture has been cited as a factor with significant influence on the determination of the business establishment because it influences the behavior of the individual. In this regard, culture influences the type of business incentive that is established in the economy and the social practices are critical in determining the performance of the venture. This incentive has proven to be extremely critical in determining the aspect of regional integration. Finally, the choice of cultural practices and social attributes are extremely beneficial for the establishment of business environment on the global perspective.

Conclusion

Over the period, the global perspective has witnessed significant development that has resulted in the development of international business. These developments and attributes of sustained growth in businesses have been extremely beneficial because the establishment of regional integration is largely dependent on this depiction. The aspects of regional integration and globalization have emerged as the important attributes that enhances the operations of business activities. In the wake of these realities, the establishment of international business encompasses the cooperation between the global nations and the integration of regional economies. In reality, the conduction of business opportunities in the world market has adopted the consideration of enhancing regional participation and attributes of specialization and division of labor because each nations participating in the global market must ascertains the productivity of the nation. The aspect of political stability has the attribute of encouraging regional integration and the attribute of regional integrations form that basis in which international business is based. In this regard, the establishment of political stability is one of the conditions necessary for the establishment of international business environment because it encourages interaction between different nations thereby encouraging the aspects of comparative and absolute sharing of commodities. Some of the critical factors that are beneficial in determining the establishment of business environment are considered to be the prevalence of political stability, the establishment of global economic growth and the contributions of cultural and social practices.

References

Alma T. Mintu-Wimsatt, H. R. (2000). Environmental Issues in the Curricula of International

            Business. United States: Routledge.

C, F. (2010). Text And Cases,. International Business : , 154.

Coade, N. (1997). Managing international business. United States: CengageBrain.com.

Downing, D. (2006). Elements of International Business. New York: Heinemann/Raintree.

Farok J. Contractor, P. L. (2002). Joint Ventures. Cooperative Strategies in International

            Business: , 72.

Ian Brookes, J. W. (2010). Challenges and Changes. The International Business Environment: ,

            83.

James P. Neelankavil, A. R. (2009). Basics of International Business. United States: M.E.

            Sharpe.

Lawrence E. Koslow, R. H. (2000). 308 Tips to Take Your Company Worldwide. Global Business: , 663.

Leslie Hamilton, P. W. (2012). The International Business Environment. New York: Oxford

            University Press.

Michael R. Czinkota, I. A. (2010). Positioning Ventures Ahead. Global Business: , 200.

Morrison, J. (2002). diversity and the global business. The international business environment: ,

            521.

Onkvisit, S. (2008). Analysis and Strategy. International Marketing: , 82.

Peng, M. W. (2010). Global Business. New York: CengageBrain.com.

Riad A. Ajami, G. J. (2006). Theory and Practice. International Business: , 107.

Ruth A. Pagell, M. H. (1999). How to Find It, How to Use It . International Business

            Information: , 291.

Taylor, R. (2012). Understanding the Global Economic. International Business in China: , 183.

Wilkinson, G. (2010). Challenges and Changes. The International Business Environment: , 308.

Yu, L. (1999). management and operations. The international hospitality business: , 114.

CLASSICAL THOERIES OF TRADE

Classical theories of trade

Over the period, the global regime has witnessed emergence of significant development in the performance of the economy and in the establishment of the factors of production. Analysis of the global economies has reveled the development received in the national economies has taken considerable steps that entails the adoption of significant economic policies. The economic growth of the nations is extremely vital for the development of the global economies and the aspects of the classical economists have significantly enhanced the development experienced in the modern economies. The contribution of the classical economist has significantly assisted the establishment of trade in the modern economies because the aspects of trade adopted in the modern economies were formulated by the classical economists in the past era of the 17^th century (Salvatore, 2012). Classical economics refers to the economic works done by the groups of economists in the eighteenth and nineteenth centauries. These groups of economists in the classical developed significant theirs regarding the operations of the market and observation of trade. Therefore, the theories highlights how the markets work and further states how the market performance enhances economic growth. Some of the renowned classical economists include Adam Smith, David Ricardo, John Stuart Mill and Thomas Malthus amongst others (Carbaugh, 2010). Over the period, analysis of the performance of the economies has revealed that the theories of trade formulated by the classical economists have significant influence the establishment of modern trade. In this regard, it is evident that the establishment of the classical theories of trade was extremely critical in observing the changes and movement in the market because their consideration provided ideal understanding of the complexities in the market (Husted & Melvin, 2007). The establishment of classical theory of trade considers the aspects of mercantilism, absolute advantage and comparative advantage. The consideration of modern day trade theories considers the effects of international trade that considers the aspects of imports and exports.

Classical theories of trade

Mercantilism

Te development of the mercantilism system of the economy advocated for the establishment of commercial revolution and this system was established with the aim of transforming the aspect of trade in the economy from regional to the national level. The attributes of the classical economies has revealed that mercantilism is a philosophy that has been inexistence for more than 300 years and it has continued to impact on the performance of the economy (Pugel, 2012). The development of this trade theory was based on the idea that national wealth is more vital than regional wealth. Therefore, the provisions of this theory highlighted the need for the countries to increase their participation in international trade through the consideration of increasing the aspect of imports and exports. The depiction of increasing national power and wealth resulted in the consideration of increasing exports in exchange for precious metals that were beneficial for the purpose of increasing trade within the nation. This theory emphasized on the established of a positive balance of payment because it was characterized by more exports and less imports. However, mercantilism declined because it reduced the standards of living and much of the economies wealth was held by the monarchs in the form of gold bullion.

Absolute advantage theory

The failures of the mercantilism theory resulted in the establishment of the theory of absolute advantage. The prospect so mercantilism was criticized because it favored the operations of the producers more than those of the consumers. In this regard, there was need to establish a reliable market system that considered the disparities and complexities of the consumers and the absolute advantage theory was established. The theory of absolute advantage is critical because it enhances the aspects of international trade but also considers the contributions of the internal market (Appleyard, Field & Cobb, 2010). The development of this trade theory is aimed at enhancing the satisfaction of the consumers therefore; the theory considered the use f the most efficient method of enhancing satisfaction of the market (Salvatore, 2012). With regard to this, the theory considers the aspect of internal production of goods and services and illustrates the aspect of comparing factors of production used in satisfying the wants. The comparison of the external factors from the international market with the internal factors from the internal market leads to the establishment of absolute advantage and the economists in the economy can choose the market with absolute advantage. In this regard, the theory states that sometimes the external market is more expensive and leads to the reduction of the consumer’s satisfaction.  This theory considers the aspect of production possibility frontier that highlights the best production combinations of the market. From the figures below, it is evident that the establishment of the highest combination will be considered by the economy for the purpose of engaging in trade.

Source (Carr, 1997).

Furthermore, the attributes of production possibility frontier analyses the possibility of the economy in terms of the necessity to produce a commodity locally or the benefits of importing the same commodity from the external market. In this category, efficiency of production and the availability of the factors of production are the critical attributes that influences the theory of trade (Chacholiades, 2006). This trade theory introduced by Adam Smith has proven to be extremely critical in ascertaining the conduction of trade in economy with regards to local trade and international trade because it helps the economists in making trading decisions.

The theory of comparative advantage

In illustration of the theory o comparative advantage, David Ricardo noted that countries can gain from the consideration of engaging in trade even if one of the countries is less productive than the other in the production of all commodities. The provision of comparative advantage is based on the consideration that different factors of production in different countries enhance the production of different commodities (Feenstra & Taylor, 2011). In this regard, the countries should consider the aspect to self reliance. In stead, the economies should engage in the aspect of exchange of commodities through the aspect of trade. In this regard, the theory of comparative advantage enhances the conduction of international trade and further capacitates on the attribute of efficient usage of factors of production and satisfaction of the consumers. The depiction of comparative advantage is better illustrated through the use of the figure below.

From the figure above, the following facts are evident

1. Country A is best suited for the production of commodity X
2. Country B is best suited for the production of commodity Y

The analysis of the above provision presents ideal chance for the conduction of trade because both countries are best suited in the production of specific commodities. Therefore, country A can major in the production of commodity X while country B can employ the usage of all the resources to produce commodity Y. finally, these tow countries can engage in the aspect of international trade where they will exchange different commodities.  In reality, this is ideal and it has been adopted in the modern aspects of trade where countries have noted the benefits of specialization rather than engaging in self sufficiency where all the economic factors and sectors are inefficient.

Development of modern world trade pattern

Over the period, the global regime has experienced development resulting in the establishment of globalization. The consideration of globalization is denoted as the aspect of enhancing trade between the nations because the consideration of globalization is based on the consideration of regional integration.  Regional integration is an aspect that has resulted in the development of international trade and is this regard, borrowed significantly for the derivatives of classical theories of trade. The establishment to regional integrations based on the considerations of classical theories of trade that was developed by the classical economists (Krugman &Obstfeld, 2012, Chipman, 2008). The consideration of adopting regional integration and globalization are beneficial aspects that encourage trade prospects between different countries because the provision of country commodities differs from those of the other country. The depiction of this attributes of regional integration has been ascertained to have origin the specification of the classical theories because they emphasized on the aspect of exchange of resources between two or more nations.

The development of the modern trade is based on the movement of goods between tow or more countries and this incentive forms and integral aspect of the modern world trade. In reality, the aspect of trade involves the exchange of commodities including money and this provides ideal relationship with the mercantile system of trade that was based on the consideration of exports in exchange for gold and other precious metals (Dimand, 2004,  Whittaker, 2000). The consideration of engaging in the modern world trade is based on the consideration of mercantile theory because this theory identified the need to engage in trade with international communities. The similarities in the depiction of international trade are similar between the tow attributes. However, the consideration of the classical necessitated the establishment of international trade based on the old terms of labor and the theories of value while the development of the modern day world international trade is based on the general equilibrium of the theory of value. In this regard, it is clearly illustrated the formulation of the modern world international trade has the pacification of the classical theories s but the significant differences is denoted as the contributions of the necessitation factors where value is considered as the driving factor for modern world trade as opposed to theories of labor.

The development of modern world trade is based on the consideration of the differences in the prices and values of commodities (King, 2000). This sentiment is based on the consideration of the classical theories that based their aspect of international trade on the provisions of factor price differences. Factor price differences were established by the classical economists because they aspired to initiate the creation of values through the usage of factors of production. On the other hand, the establishment of modern attributes of international trade is based on the consideration of the differences in commodity prices, the pricing of the commodities and pricing of factor pricing are based on one ideology. The analysis of the strategies for the conduction of international trade are ideal and similar with regard to the classical period and modern world trade and this significantly confirms that the modern world trade is based on the classical theories.

Another significant attribute that highlight the similarity in the classical international trade and modern world trade is the consideration of the basis of the engagement in international trade. Over the period, analysis conducted on the aspect of international trade has revealed that the establishment of classical international trade and modern world trade has significant relations and patterns of condition because they both involve the participation of tow or many countries (Feenstra, 2004). However, the analysis has further reveled that the consideration of classical international trade is a normative and welfare oriented while the establishment of modern world trade is based on the consideration of the gains. Therefore, a gain from the international trade is the driving factor that drives the conduction of modern world.  The aspect modern world trade is based on the realization of the benefits that various countries will gain form engaging in the aspect do trade. An example depicting nth establishment of modern trade is the case of two countries like Iran and Kenya. Over the period, Iran has been known for the production of oil while Kenya is known for the production of Tea. Therefore, the aspects of modern trade calls for the aspect of the two countries engaging in the international trade where they will exchange the goods they produce (Hudson, 1999, Mukherjee, 2007). In this regard, Iran will sell oil to Kenya while Kenya will sell her tea to Iran. This establishment of trade highlights the attributes of trade based on value of the commodities exchanged by the countries. Of importance is the consideration of comparative advantage and specialization. Comparative advantage is an important aspect that leads to the development of specialization. Specialization is critical for the establishment of international trade because it results in the consideration national and economic development. The classical economic theory illustrated by David Ricardo highlights the benefits of attaining comparative advantage because it enables the nations to realize what the economy is best suited to produce and this leads to the establishment of modern world trade.

Conclusion

The development of international trade has taken significant aspect of transformations form the attributes of classical theories. Analysis has proven that the development of modern world trade significantly depends on the establishment of classical theories. The aspect of international trade has significantly contributed to the establishment of regional integration and this has continued to be beneficial because the nations can have access to the goods and other commodities not produced in the local market. The aspects and provisions of classical theories has significantly influenced the consideration of modern world trade because the current activities conducted in the global market are based on the policies f the classical theories. The development of modern world trade is based on the consideration of the differences in the prices and values of commodities. This sentiment is based on the consideration of the classical theories that based their aspect of international trade on the provisions of factor price differences. Factor price differences were established by the classical economists because they aspired to initiate the creation of values through the usage of factors of production. On the other hand, the establishment of modern attributes of international trade is based on the consideration of the differences in commodity prices, the pricing of the commodities and pricing of factor pricing are based on one ideology. In conclusion, the classical theories have significantly influenced the establishment of modern world trade and the operations of the world trade are based on the specifications of the theories.

References

Appleyard, D.R., Field A.J. & Cobb, S.L., 2010, International Economics, 7^th edition, McGraw

            Hill: London;

Carbaugh, R. (2010). International Economics. New York: CengageBrain.com.

Carr, M. (1997). process and change in human geography. New patterns: , 495.

Chacholiades, M. (2006). Pure Theory Intl Trade. New York: Transaction Books.

Chipman, J. S. (2008). The Theory of International Trade - Volume 1. Boston: Edward Elgar

            Publishing.

Dimand, R. W. (2004). The Origins of International Economics. Classical Theory of the Gains

            from Trade , 522.

Feenstra, R. C. (2004). Theory and Evidence. Advanced International Trade: , 193.

Feenstra, R.C.& Taylor, A.M., 2011, International Economics, 2^nd edition, Worth:U.S.

Hudson, W. D. (1999). Classical theories. New Studies in Ethics: , 63.

Husted, S. & Melvin, M., 2007, International Economics, 7^th edition, Pearson: London

King, P., 2000, International Economics and International Economic Policy: a reader, 3^rd

            edition.

Krugman, P.R. &Obstfeld, M., 2012, International Economics: theory & policy, 9^th edition,

            Pearson: London

Mukherjee, S. (2007). Modern Economic Theory. United States: New Age International.

Pugel, T.A., 2012, International Economics, 15^th edition, McGraw Hill: London.

Salvatore, D., 2012, Introduction to International Economics, 9^th edition, Wiley: Singapore

Whittaker, E. T. (2000). The classical theories. United States: Humanities Press.

Globalization

Globalisation 

Introduction

In the recent past, the global regime has experienced significant development that has resulted in the establishment of regional integration and globalisation. Globalisation can be defined as the aspects of increasing financial and economic integration to encompass all the economies of the world. The aspects of globalization are manifested in the establishment of production, financing, sales and also in the distribution of goods and services (Ismihan et al 2008). Given that some nations were opposed to the ideology of globalisations, the proponent so globalisation has asserts that these beliefs have significantly enhanced the aspects of globalisation.

Abstract

Globalization mainly in the financial is increasing drastically, is opening up the new venue in the developing, and develops nations. The major impact that has contributed to the developing countries is opening venue for foreign capital and investors’ sectors (Hopkins, 2010).  The government have been able to access to foreign loans, which are used in the development of the infrastructure such as roads, railways; health care and social services such education.  The investment such sector will improve the standard living of citizens, however not all the investment will benefit all people because it done selectively (Ayyagari, 2011).Globalizations also provide market of products from developing countries to the international market. In the process, it allows the companies to acquire new technology and develop new products that can compete in the international level.  Wide market allows the companies to create new investments thus creating new jobs. Nevertheless, globalization my lead to closure of some companies in the developing nation due to influx of imported inferior products, which may be cheap. This makes a country to register negative economic growth certain sectors (Hopkins, 2010).

Literature review

The consideration of the development of globalisation has taken toll in the recent past and significant studies have been conducted to enhance participation of the global nations. Analysis of the records has stated that global economies have continued to embrace the aspects of globalization in the conduction of business activities and in the exchange of ideas. In this regard, technological advancement has been cited as one of the leading factors that has enhanced development of globalisation (Khavul et al 2010). In summary, globalization is a process where the countries all over the world come together in sharing products, ideas and culture because of improved transport and telecommunication infrastructure such as internet and promote sharing of economic and cultural activities (Ayyagari, 2011). Analysis of the records has shown the IMF and WTO have significantly enhanced the establishment of globalisation by enacting rules and regulations that enhances omission of taxes and tariffs. The establishment of tariffs has been cited as one of the measures that have reduced the activities of international business and the reduction of these tariffs by international monetary funds and world trade organization has resulted in the enhancement globalisation (Murthy 2008). In the wake of these developments, the establishment of these directives are beneficial because it enhance the establishment and the realization of economic growth and development of the economies. In this regard, the establishment of globalisation can be stated to have significant effect in the establishment of sustainable economic development. Economic growth is sustained and the utilization of nation economic resources is also enhanced. The major obstacle the most countries are facing especially the developing is to attain set goal in the economic growth is to provide enabling atmosphere  for proper use and harnessingeconomic resources (Ayyagari, 2011).Globalization has made situation to become worse because economic dispensation undermine and marginalize development economies. Globalization has help more developed countries to develop further and improved the standards of developed countries while other countries especially the developing show minimal economic growth thus poor standard living of people in such countries (Khavul et al 2010).Globalization is the flow of people and resource in the process it has help in the flow of labour in the world.  The increase of trade especially the international has promoted sharing of data and information hence it is very easy for individual they get employment opportunity in the other country which not origin (Khavul et al 2010). Ideal depiction of globalisation is the case of fashion industry. This industry faces significant involvement of regional industries because the designs are made in Sydney but the materials for the Sydney industrial are sourced from china. Finally, the assembling of the industries is done in Switzerland. Finally, the finished products are transported back to Sydney for assortment and sale. In this regard, the depiction of the benefits of globalisation and regional integration is highlighted by the development of this example of fashion industry in Sydney. These promote the specialization in the labour market and promote the dependence of world economy (Kim, 2009).

One factor that has characterized globalisation is the establishment of modern technology which has resulted in the development efficient communication. This has resulted in the enhancement of business incentives. (Fuhr, 2001). Its contribution has not only affected rapid expansion of the information sharing over the website or internet but also the increase in the education chances and form part of transnational networks.  The information that accessed by few individual it now can be accessed to many people from different background. Faster accesses to information by the citizen make them to understand their rights and become part national activity by ensuring their demands met (Ismihan et al 2008). However, social globalizations bringmany challenges to various governments because the controls what type of information get to its citizens (Kim, 2009). Analysis of the records has highlighted that the consequences of globalisation leads to the improvement of capital flow of the global market. (unalı, 2010). Finally, the attributes of globalisation has proven to be beneficial for the establishment of developed countries. Liberalization has helped it gross domestic products to grow from 5.6% in 1990 to average 77.8 in 1996-7, which was its peak (Mahtaney, P 2007). However, it has maintained its economic growth at average 5-6% in the past six years and at the moment India is the second fastest growing economy after China.

Research methodology

Over the period, significant amount of research has been conducted about the aspect of globalisation. Conduction of these researches has been initiated to help in the establishment of the benefits of globalisation in the enhancement of economic performance. Some of the leading factors in globalisation are the transfer of human capital and the establishment of ideal market for the goods and other commodities. The research conducted above has been beneficial in highlighting the benefits of globalisation. However, the aspects of globalisation and economic development of the emerging economies are not highlighted in the researches conducted. In this regard, the establishment of this research is aimed at enhancing the establishment and contributions of globalisation in the developing economies.

Analysis

Analysis of the reports has revealed that the development of globalisation has been extremely beneficial for the enhancement of the global economies. Globalisation is crucial because it enhances integration and interdependency between the developing economies and the developed nations. The establishment of the economies has revealed that the consideration of the economies is largely dependent on the contributions of international trade Robert, K (2009). Over the period, trade has been identified as the leading factor of globalisation that enhances regional integration and the transfer of resources and other attributes like the factors of production and human capital. Majority of the developing nations have the attribute of adopting the considerations of globalisation because it encourages economic development and establishment of the economic factors.

Source Robert K (2009).

The depiction of the findings above illustrates the contributions of the aspect of globalization to the development of the national economies. It is evident from the analysis above that developing has continued to experience significant economic development because of the involvement of the factors from international markets. The table shows presentation of results depicting the value of imports as an attribute of globalisation.

The pie chart below highlights the depiction of developing economies and it is evident that the value of manufactured goods is higher in thee economies because majority of the foods are imported from developed nations (Kim, 2009). Developing nations have ideal standards of manufacturing their goods but they have limitation in extracting and manufacturing and this calls regional integration and globalization.

In view of Mbemba (2012), diversification of resources is a concept in business strategy, which increases the range of business products and services.In addition number of organizations use the strategynot only as institutional strengthby lowering organizational risk factors and spreading interest in different areas but also taking advantage of market opportunities, and acquiring both business both horizontal and vertical in nature sectors (Hopkins, 2010). Globalization has help companies in the developed countries to get cheap labour from developing nations. Human capital in the developing nation is not very expensive compare it to developed so multinational companies invests in developing nation to low cost of production through labour. Apart from labour raw material in the developing national are relative cheap and readily available (Ismihan et al 2008).

Conclusion

Globalization has both developed and developing countries in both positive and negative ways. Most of the country or the individual who take the advantage of globalization will benefit and steer economic development faster (Mahtaney, P 2007). Globalization implications in national economy are many. The increase rate of dependence and competition among economies in the world market, thus trading of interdependence concerning trading in goods and services the movement of capital. Internal developments notentirely influenced by country internal policies and market environment.  International and domestic policies and economic condition both influence market too (Fuhr 2001). Thus, when government formulating it domestic policies must put the consideration of international condition to ensure economic growth

Reflection

The establishment of globalization has significantly enhanced regional and economic development of global economies. In this regard, the analysis of the research findings have revealed the overall benefits of globalization but the ideal graphical and tabular benefits of globalization with respect to national economic performance is not readily available. There are significant amount of data regarding the developed nations but the depiction of developing nations has not been adequately documented and this has proven to be a major difficulty in the establishment of results about contributions of globalisation. In order to overcome the difficulties and establish critical research for the project, the analysis of collective national economies of the developing economies was used in the research. The analysis of the collective results of the developing nations has also proven to be critical for the establishment of correct results and it has necessitated conclusion for the research.

The conduction of this research has been immensely beneficial because it has enabled the researcher to understand the provisions and operations of the global economy. In conduction of this research, globalization has been presented as a significant aspect that significantly enhances development of the national economies. With regard to the development of the national economies, regional integration is highly beneficial because it enhances the conduction of trade between various nations and this leads to the development of the national economies. The conduction of this research has proven to be extremely critical because it has enabled the researchers to understand the complexities and disparities facing development of the nations. The contributions of developed nations towards the development of the global economies have been highlighted because they highlight general establishment of the factors of production. The consideration of providing the factors of production to the global has been beneficial in the establishment of world trade and regional development. The global economies have been portrayed as interrelated factors that are dependent on one another for the attributes of trade. Finally, globalisation has been highlighted as the factor responsible for the establishment of development of the global market and global nations.

In the wake of unfolding realities about globalisation, it is extremely beneficial for the global economies to adopt the aspects of globalization because this wills enhance significant development of the global economy. In this regard, various global economies must adopt the provisions of globalisation because the provisions and the recommendations of globalisation provide ideal features that enable the nations to relate and conduct business. The economists in the global nations should adopt the aspect of globalisation because it provides ideal incentives for the nations to exhibit development. Therefore, establishment of globalisation in the future will enhance regional integration and coordination between various nations in the global perspective there leading to increase in development.

References

Schaeffer, Robert K. 2009. Understanding Globalization : The Social Consequences of Political, Economic, and Environmental Change. n.p.: Rowman& Littlefield Pub, 2009. EBook Collection (EBSCOhost), EBSCOhost (accessed December 5, 2012).

Murthy, G 2008, International Economic Relations, n.p.: Kalpaz Publications, eBook Collection (EBSCOhost), EBSCOhost, viewed 5 December 2012.

unalı, H, &Tatoğlu, F 2010, 'Factors Affecting Credit Card Uses: Evidence from Turkey Using Tobit Model', European Journal Of Economics, Finance & Administrative Sciences, 23, pp. 87-101, Business Source Complete, EBSCOhost, viewed 5 December 2012.

Hopkins, AG 2010, 'The Historiography of Globalization and the Globalization of Regionalism', Journal Of The Economic & Social History Of The Orient, 53, 1/2, pp. 19-36, Academic Search Premier, EBSCOhost, viewed 5 December 2012

Ismihan, M, Olgun, H, &Utku-Ismihan, F 2008, 'Globalization of National Economies, 1975-2005', International Research Journal Of Finance & Economics, 14, pp. 68-81, Business Source Complete, EBSCOhost, viewed 5 December 2012

Kim, P 2009, 'Enhancing Public Accountability for Developing Countries: Major Constraints and Strategies', Australian Journal Of Public Administration, 68, pp. S89-S100, Business Source Complete, EBSCOhost, viewed 5 December 2012.

Fuhr, H 2001, 'Constructive Pressures And Incentives To Reform: Globalization and its impact on public sector performance and governance in developing countries', Public Management Review, 3, 3, pp. 419-443, Business Source Complete, EBSCOhost, viewed 5 December 2012

Ayyagari, M, Demirgüç-Kunt, A, &Maksimovic, V 2011, 'Firm Innovation in Emerging Markets: The Role of Finance, Governance, and Competition', Journal Of Financial & Quantitative Analysis, 46, 6, pp. 1545-1580, Business Source Complete, EBSCOhost, viewed 5 December 2012.

Khavul, S, Benson, G, &Datta, D 2010, 'Is internationalization associated with investments in HRM? A study of entrepreneurial firms in emerging markets', Human Resource Management, 49, 4, pp. 693-713, Business Source Complete, EBSCOhost, viewed 5 December 2012.

Mahtaney, P 2007, India, China And Globalization : The Emerging Superpowers And The Future Of Economic Development, n.p.: Palgrave Macmillan [UK], eBook Collection (EBSCOhost), EBSCOhost, viewed 5 December 2012

Mbemba, A 2012, 'The Effects of Globalization on U.S. Monetary Policy', International Journal Of Economics & Finance, 4, 6, pp. 187-197, Business Source Complete, EBSCOhost, viewed 5 December 2012.