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 purlieu Reduction of protection Increased overseas expansion. Changes in markets: Changes in financial/ cracking markets - finance is mobile and flows easily betwixt 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 forthwith arrest to aim at the whole global consumers. Drivers of globalization Transnational Corporations - they are the biggest players in the global economy because they production large volumes of products to different countries around the world and take gain of economies of scale. Global consumers - todays consumers have access to the int ernet and pay TV so they are more likely to purchase products from contrary sources. Impact of technology - due to improvements of communication/technology and please the globe has shrunk in size because it is a lot quick to send consider/information. Role of government - over the quondam(prenominal) 20 years, most governments have made an effect to little by little phase out protection. This has besides been through the establishment of galore(postnominal) large trading agreements.

Methods of external expansion Export Advantages cut-price Can gain valuable experience overseas Disadvantages shell out barriers Trans port costs Possibly uneconomical *Foreign ! taper investing (FDI) -Greenfield strategy - commencing a new business overseas. -Acquisition - merger/takeover -Joint hypothesis - where 2 or more businesses encounter together. Advantages 1. Direct reassure over foreign facilities 2. Reduction in transport costs 3. meliorate ability to monitor office staff Disadvantages Increased financial risks Exposed economic uncertainties Currency fluctuations * movement of performance - this occurs when production is shut down... If you want to get a entire essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper