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Internationalization and globalization Essay: It has become apparent that no matter the businesses size, market or business sector Internationalization has become an important consideration for firms looking to cease the opportunities and benefits of going global.
In this chapter we will focus on the concept of the Internationalization of business and the opportunities it presents. International Business Globalization is the modern term used to describe changes in society and world economy, resulting in highly increased international trade and cultural exchanges.
In the last twenty years, there have been major changes to the institutional framework governing international economic relations.
Market integration is growing stronger, there has been a reduction of trade barriers between countries, relaxation of government policies has led to trade liberalization, more open international markets and broad strong trends of globalization, these and other developments, multiply the opportunities for internationalization of companies.
Some examples of the major changes occurring in the last 30 years of the international business environment include: It has become clear that globalization is deepening and expanding the interdependence between firms from different countries.
It has also been evident in recent years the relaxation of governments to foreign trade has increased thus opening up new markets for firms across the world. Governments have reduced these barriers, primarily due to growing demand from consumers to have access to a greater variety of products at a discounted price.
At a macroeconomic level there are several factors that can be considered relevant for the current period: For example, even very large companies such as Apple, can no longer afford to develop new products alone which have increased the need to form strategic alliances with potential competitors in order to meet the ever increasing demand for new and innovative products.
It is known that Apple has partnered with some other companies in the past, such as: This was seen with McDonalds when they adapted their menu for India where they were not allowed to serve beef due to the mass Hindu populations regarding cows as sacred animals, thus they have to server vegetarian burgers and famous burgers like the Maharaja Mac.
However, according to the resources and objectives of the company, she can engage more or less in international business. The companies that are engaging in more advanced forms of internationalization proceed through the following stages: In this case, the main way to achieve internationalization is through direct investment, this form is normally through foreign investment FDI.
This model focuses on the object of internationalization, target markets, entry modes, organizational structure and resources.
These components could be completed with other such as motives, objectives, competitive advantages and degree of commitment.
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