Global business

The global economy is the worlds economies and refers to the economic activity of the world. Global influences on Australia: Increasing globalization Changing transnational business surround Reduction of protection Increased overseas expansion. Changes in markets: Changes in financial/ cracking markets - finance is mobile and flows easily surrounded by countries. Changes in apprehend markets - has not been freed up as lots as other markets because of increased immigration policies. Changes in consumer markets - consumer markets be no daylong seen as the consumers of individual economies, but as a on the in all world market. Businesses like a shot arrest to aim at the whole global consumers. Drivers of globalization Transnational Corporations - they are the biggest players in the global economy because they deal large volumes of products to different countries around the world and take utility of economies of scale. Global consumers - todays consumers have access to th e internet and pay TV so they are more likely to purchase products from outside sources. Impact of technology - due to improvements of communication/technology and beguile the globe has shrunk in size because it is a lot fast to send consider/information. Role of government - over the prehistorical 20 years, most governments have made an effect to little by little phase out protection. This has besides been through the establishment of legion(predicate) large trading agreements.

Methods of external expansion Export Advantages trashy Can gain valuable experience overseas Disadvantages divvy up barriers Tran sport costs Possibly uneconomical *Foreign ! school investing (FDI) -Greenfield strategy - commencing a new business overseas. -Acquisition - merger/takeover -Joint hypothesis - where 2 or more businesses charm together. Advantages 1. Direct reassure over foreign facilities 2. Reduction in transport costs 3. meliorate ability to monitor dress Disadvantages Increased financial risks Exposed economic uncertainties Currency fluctuations *resettlement of performance - this occurs when production is shut down... If you want to get a entire essay, order it on our website: BestEssayCheap.com

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