GLOBALIZATION

International Business Environment

International Business Environment

Introduction

The term globalization can be defined as international integration rose from interchange of views, ideas, products and services of different cultures and nations. The main driver of globalization is business and tourists. There are so many nations across the world with different qualities and requirements. The world has come to the age where the economies of different nations depend upon each other. The primary reason behind this is the demand and supply of resources. It is a fact that the type of resources available in different parts of geographical location varies. It has been seen that few minerals which are available at one location are not available at another location. The quality of resources also varies from location to location and the areas which are offering quality resources are significant from the investor's point of view. The investors use to exploit all those options which are expected to provide better returns (Morrison, 2009, pp. 12). Therefore, if there is an opportunity abroad then the investors prefer to relocate to that particular region. The resources which attract investors are minerals and raw material of various kinds. The business opportunities also attract the investors and corporation to undertake projects abroad. This is also known as corporations going international. This phenomenon has made the world economies interdependent to each other because if the country where there are number of multinational corporations witness financial or any other issues than it is obvious that the host countries will witness problems of unemployment. The report will focus on drivers in the globalization of world economy and their significance. The report will also cover the argument that the international business environment has become more regional than global. It is a fact that the globalization also affects the business process and production strategies of companies which will also be discussed in this report. The report will cover research to identify the factors that impact of globalization on the production strategies of the companies. It is the fact that the risk attached to the geographically diversified projects is expected to high as compared to the risk attached with local projects. Therefore, the decision of making investment in international projects requires through analysis of the target market. It is no necessary that company will remain successful because of its brand name, heavy investment and efficient business models. The cultural study is very important is very important in carrying out projects at different locations (Kapfere, 2008, pp. 155).

Discussion

The research showed that there are number of drivers for globalization in world economy which are described in detail below along with their significance. This research includes the analysis of literature and case studies to evaluate all the key drivers in the globalization of the world economy.

Access to Cheaper Input

The most significance driver of globalization is accessing the cheaper inputs. If a corporation is operating in a country where the input or raw material required in underlying operations is expensive then there are fair chances that ...