Global Business Assignment
Global business refer to international corporate consolidation or trade between many different nations with a main purpose; to satisfy services, maximize profit, minimize cost while guarding individuals, and corporations growth. “These transactions take on various forms, which are often interrelated. Primary types of international business are import-export trade and foreign direct investment (FDI). The latter are carried out in varied forms, including wholly owned subsidiaries and joint ventures.” Additional types of international business are licensing, franchising, and management contracts. Franchises like McDonalds that has more than 32000 restaurants or Starbucks with almost 20000 locations around the globe. (Czinkota,2004) Global business is successful only when satisfaction and understanding between the involved parties is gain, if an American Company wants to enter Colombia or Japan; they must understand and agree to different laws, cultures, currencies, and societies if they want to stay there for the long run. “The basic principles of business still apply, but their application, complexity, and intensity vary substantially. To operate outside national borders, firms must be ready to incorporate international considerations into their thinking and planning.” (Czinkota, 2004) When management integrates critical thinking to each decision, international markets can provide growth. Critical thinking like, “how will our idea, good, or service fit into the international market; should we enter the market through trade or through investment, should I obtain my supplies domestically or from abroad, what product adjustments are necessary to be responsive to local conditions, what threats from global competition should be expected and how can these threats be counteracted.” (Czinkota, 2004) I also believe that the capacity of a management team to...
References: Czinkota, M. R. (2004). Fundamentals of International Business. Retrieved January 05, 2012, from University Of Central Arkansas: www.uca.edu
Tovar, J. A. (2006, February 28). Portafolio. Retrieved January 06, 2012, from Portafolio: www.portafolio.com.co
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