-
Essay / Essay on Globalization in International Business - 708
The recent liberalization of domestic financial markets, for example of China and India, is expanding the options for companies to accelerate their global expansion. Not only do businesses grow, but they also have the opportunity to fully utilize their resources. For example, Volvo car is manufactured in 38 different countries and states, achieving low production costs and high quality products by simply outsourcing labor allocation. A solid understanding of the local market will allow businesses to target consumers and meet their needs effectively and consistently. With this globalization of business, companies can focus on “the market for the market’s sake.” This model allows companies to reduce production and transportation costs, using local resources to create products for the local market. International trade offers access to new customers, economic solutions and the mobilization of human resources. The growth of international trade stimulates competition between businesses and nations; we must adapt and take advantage of innovations and productivity to