Quastions ch 1 Essay Example | Topics and Well Written Essays - 500 words

Quastions ch 1 - Essay Example Companies engage in international business as a measure of accessing new markets for its unique products, access  economies of scale, spread R&D costs, and access to higher profits owing to some benefits of operating in the international market including low production cost, low competition, and fiscal & export incentives. The growth of international business has accelerated due to economic liberalization in tariff structure and regulation owing to the actions of WTO allowing firms to set base internationally and still make profits without being affected tariffs and regulations. The other reason acceleration of international business is breakthroughs in technology in terms of manufacturing, communication, and information, transportation technologies making the world a global village. The result has been ability for mass production, reduction in transport costs, and a reduction in significance of distance as a factor in determining the country of operations. International economic integration, WTO & GATT, and movement to free market systems are other reasons that have facilitated the acceleration of international business growth (Herrmann, May 2012). The future of globalization is that of the continued increase especially in education sector through global outreach of universities, and student flows, migration of people and systems for global food production. With increased interconnectedness, globalization will continue at a fast rate leading to the exchange of ideas, goods, jobs, and money. Augmented globalization in the future will result in easier access of information, increased volatility, and economic uncertainty. The criticisms of globalization include that it has led to the devastation of the environment, unequal development of countries with the developed countries having a better advantage over developing