Global business

The globose economy is the earths economies and refers to the scotchal activity of the domain of a function. Global influences on Australia: Increasing globularization Changing transnational business organisation environment Reduction of protection Increased oerseas expansion. Changes in markets: Changes in financial/ scissure markets - finance is mobile and flows considerably between countries. Changes in hold markets - has not been freed up as much as former(a) markets because of increased immigration policies. Changes in consumer markets - consumer markets ar no long seen as the consumers of individual economies, however as a on the in all world market. Businesses now arrest to carry at the whole global consumers. Drivers of globalization Transnational Corporations - they are the biggest players in the global economy because they merchandise elephantiner-than-life volumes of products to different countries around the world and take emolument of economies of scale. Global consumers - todays consumers be in possession of access to the internet and pay up TV so they are more likely to repel products from foreign sources. Impact of technology - due(p) to improvements of communication/technology and channel the globe has shrunk in sizing because it is a lot faster to send consider/information. Role of disposal - over the past 20 years, most governments have do an effect to gradually soma out protection. This has besides been done the establishment of many large trading agreements.

Methods of external expansion Export Advantages Inexpensive Can secure valuable experience overseas Disadvantages Trade barriers Transport costs Possibly uneconomical * strange Direct investing (FDI) -Greenfield strategy - commencing a new business overseas. -Acquisition - merger/takeover -Joint hypothesis - where 2 or more businesses clip together. Advantages 1. Direct reassure over foreign facilities 2. Reduction in transport costs 3. meliorate efficiency to monitor position Disadvantages Increased financial risks Exposed economic uncertainties Currency fluctuations *Relocation of performance - this occurs when achievement is shut down... If you want to get a entire essay, request it on our website: Ordercustompaper.com

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