what is globalization ?
what is globalization ? – Globalization is also called International business, International trade is that trading which open a cross border transactions between the countries, no matter these countries are developed, developing, under-developing.
These all transactions takes place with the collaboration of highly skilled labour, capital, technology, transportation and soo on.
what is globalization ?- globalisation definition
In other words it is an activity which increases foreign investments and international business is also known as Globalization.
Scope of International Business-
“Going Global” is the mantra of today’s economy. In the game of globalization, MNC’s are those actors who perform their task with their full efficiency. Most of the MNC’s perform different activities and operations in other nation.
1- Export and Import
The meaning of export concluded form the term shipment of goods & services out of nation.
This transaction must be legitimate & fulfill all the requirement of different laws.
In other words it is a task to provide goods & services to foreign customers or consumers, by the domestic manufactures and buyers.
On other hand Import is an activity where a domestic buyer gets goods from the seller who is not trading in that domestic economy. In this International products & services are availed by the domestic users.
2- Foreign Direct Investment (FDI)
It is a very general sense, FDI(foreign direct investment) is an act to do investment in other country by any multi-national Enterprises.
There can be various ways to do investment such as investment in the process of production, acquiring, an organisation in target nation by acquring shares etc.
FDI(foreign direct investment) is a major tool for any nation to inflow International Capital. It also enhances technical advancement & job opportunities in different streams.
In the Era of Globalization every country tries to expand its international Business for the purpose, every Country must be efficient in two factors, that is FINANCE & PRODUCTION. Some of the factors which discuss its importance in the morden world.
Features of International Business-
1- Cross border trading-
International business is a transaction between two countries, One country will be called as exporting & another Importing.
2- Includes exchange of Goods & Services-
International business involves transactions worldwide, on the basis of goods & services ; There all transactions take place for the purpose to improve economic conditions or to earn Money.
3- Two major activities-
International business involves EXPORT & IMPORT by the countries and FDI by any Organisations.
International business gives an option to International business entity to explore domestic market. International business entity will always enter in the domestic market with the cheap prices & elite quality.
International business also called globalization, it helps in cross border transactions which helps in development of economy.
6-Increased Standard of living-
International business gives people of home country, a better standard of living by offering them better goods & services.
7-Utilization of resources of domestic market-
When MNCs came to the home country they utilize the unused resources of that country, may be due to low technology or other reasons.
8-Earning Foreign Exchange –
As foreign country companies, that is MNCs enter home country, They provide a means of foreign exchange to them.
9-Expansion of business-
International business helps in expanding by opening their way to foreign nations also.
10-High Quality Products-
As various MNCs enter a home country, they provide better quality goods & services to them, due to high technical ways of production.
Part 2- Next topic is Driving Forces For International Business