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 among countries. Changes in apprehend markets - has not been freed up as some(prenominal) as other markets because of increased immigration policies. Changes in consumer markets - consumer markets atomic number 18 no daylong seen as the consumers of individual economies, but as a on the in all world market. Businesses at one time arrest to aim at the whole global consumers. Drivers of globalization Transnational Corporations - they are the biggest players in the global economy because they trade large volumes of products to different countries around the world and take profit of economies of scale. Global consumers - todays consumers have access to the internet and pay TV so they are more likely to purchase products from overseas sources. Impact of technology - due to improvements of communication/technology and expect the globe has shrunk in size because it is a lot faster to send consider/information. Role of government - over the prehistoric 20 years, most governments have made an effect to little by little phase out protection. This has besides been through the establishment of umpteen large trading agreements. Methods of external expansion Export Advantages crummy Can gain valuable experience overseas Disadvantages plow barriers Transport costs Possibly uneconomical *Foreign look investing (FDI) -Greenfield strategy - commencing a new business overseas. -Acquisition - amalgamation/takeover -Joint hypothesis - where 2 or more businesses defecate together. Advantages 1. Direct reassure over foreign facilities 2. Reduction in transport costs 3. meliorate ability to monitor present Disadva ntages Increased financial risks Exposed eco! nomic uncertainties Currency fluctuations * motion 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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