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

Quastions ch 1 - Essay ExampleCompanies engage in international business as a measure of accessing new markets for its remarkable products, accesseconomies of scale, spread R&D costs, and access to higher profits owe to some benefits of operating in the international market including low proceeds 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, reducing in transport costs, and a reduction in significance of distance as a factor in determining the country of operation s. 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 orbit 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(a) 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 destruction of the environment, unequal development of countries with the developed countries having a better advantage over developing