Contemporary Issues in International Business Essay

Contemporary Issues in International Business - Essay Example Thus, globalisation has very strong economic, governmental, educational and social dimensions. Globalisation is the way by which people, companies and government of different nations integrate and interact with each other. The process of globalisation has effects on the cultures, atmosphere, governmental systems, economic developments, wealth and on individual’s physical comfort in nations all around the globe (Hill, 2009). Globalisation is the process by which normal life around the globe is noticeable by calibration of communication, transportation, financial activity, Ecological and social interdependence. As a term, globalization is very often used to refer to economic globalization that is integration of national economies into the international economy through foreign direct investment, trade, capital, migration, spread of technology and flows. Globalization has melted national borders, international business has improved economic incorporation and the communication and information revolution has made time and geography irrelevant. Globalisation has a comparatively new thought and idea that the world has been implementing. OPPORTUNITIES: There are thousands of opportunities for career advancement, profit and valuable experience in international business. As Entrepreneurs come to grips with contemporary challenges and new opportunities, they define the new rules of engagement on the economic landscape. Globalisation has been the most successful affluence and anti-poverty movement in modern history. Following mentioned are some of the opportunities posed by globalization to international business. International Trade: Countries exchange a lot of money in goods and services every year. This fact demonstrates that international business makes good economic sense. Importing and exporting are the oldest and most common form of international trade. Globalisation greatly affects the global economy and the impact of foreign trade on economy is very immense. Comparative benefit has always been a factor even in the history. Trade has been institutionalized due to globalisation. Globalisation has improved free trade among nations and has improved liquidity of capital permitting investors in established countries to invest in undeveloped countries. It benefits businesses as it brings foreign exchange to the countries due to the increase in foreign trade. It also improves the global economy by increasing GDP. Trade between nation’s increases as it provides freedom to the global marketing exchange of goods and capitals. Established companies can invest in developing countries. This augments positive competition that helps in improving businesses. Licensing and Franchising: Another opportunity for to international business is franchising and licensing. A company that wants to go global rapidly while taking limited legal and financial risks might consider licensing agreements with foreign corporations. This agreement permits a foreign company to sell the products and to utilize its intellectual property in exchange for royalty fees (Hill, 2009). Franchising is the other opportunity to expand overseas. International franchise agreement is the agreement in which a company grants the right to a foreign company to use its brand name and to sell its services and products. The foreign company agrees to operate