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International Business - Assignment Example

The agreements of WTO are lengthy and complex because the deal with legal issues covering a range of activities. WTO is known as the multilateral trading system (World Trade Organisation, 2011). Globalization Globalization is referred as unification of world into one entity. It captures the changes that take place in the world economy (Indabawa & Mpofu, 2006, p.136). Globalisation is also referred to as the growing interdependence of the countries resulting from finance, trade, people and ideas. Advantages and disadvantage of globalization Advantages Global outsourcing is the global phenomena. Countries like US send its employees overseas which helps it compete in the global environment. The rate of production increases when countries produces goods and services in areas which they have a comparative advantage. With the help of Global integration, poverty has been reduced. As the developing countries gets new employment and exports to. Research and development jobs are better done when the work are outsourced because work is completed at an early time as the scientist and engineers work 24/7. The domestic companies are forced to produce better quality of goods so that they do not face competition from the foreign markets. Taxes are usually lower for countries like Malaysia and Singapore, and the financial incentives are quite high in such countries. Disadvantages Many of the people have lost the jobs especially in America due to imports and as the production shifts abroad. Many of the employees got laid off. Most of the jobs that were sent overseas from US were the employees who lost their jobs permanently. Most of the workers still fear losing job, especially companies which are under competitive pressure. Many companies have reduced the wages in order to stay ahead in the global economy. The companies had also reduced health and retirements benefits and also eliminated few pension plans. Globalization of industries, finance, and trade is accomplished by globalisation of terrorism and crime (Dubrin, 2011, p.57). International Business  International business is described as business activity that crosses the national boundaries. The entities can be private or government or in certain cases it can be both. International business is categorized into four types. Foreign trades, portfolio investment, trade in service and direct investment. In foreign trades, export and import takes place. Goods are physically moved between countries. Export consists of merchandise that leaves a country whereas imports are those which are bought into the country. Exporting and importing comprises the largest fundamental of international business. Countries also trade in services such as banking, insurance, hotels, travels and transportation. Portfolio investments are referred to as financial investments made in foreign countries. The investor purchase debt or equity with the expectation of getting a financial return on the investment made. Direct investments are differentiated on the grounds of control. A firm can own a foreign subsidiary entirely or even partially, such as joint ...Show more


International Business Assignment Contents International Business Assignment 1 Contents 2 World Trade Organisation 3 Globalization 3 Advantages and disadvantage of globalization 3 International Business  5 Advantages and Disadvantages of International Business 5 Free Trade 7 Advantages and Disadvantages 7 Interventionist Theories "Merchantilism" 8 Government polices 8 Free trade theory 8 Product Life Cycle Theory 9 Porter Diamond Theory 9 NAFTA 10 Globalization and international business 10 Free trade benefits 11 Economic and non economic theory 12 Reference 12 World Trade Organisation The world trade organization is an organization which is a global international organization, which deals w…
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