Globalization and the Correlation to International Business
Business Law I
March 12, 2013
Globalization and international business have a correlation that is symbiotic. This is a phenomenon which has been in existence for quite some time, however unless it affects us directly many with not pay particular attention to how it can ultimately affect society. In this essay, globalization will be discussed from two perspectives, how it affects economics and business trade. Globalization is the process of increased economic integration between nations leading to the development of a single or global world market. Globalization started around 150 years ago, the concept of trading across borders was first documented in 1848 in which now it have thrived and the main forces driving globalization with a overarching goal of growing a thriving market, production of goods, breaking down the barriers of foreign trade and the growing innovation of technology. Throughout the years, interactions between countries has rapidly increased, in there is a need for one another to communicate effectively in order to have positive, no corrupt exchange and ethical business partnership. International organizations (institutions that have been created to combat problems of globalization) such as the World Trade Organization (WTO) and the International Monetary Fund (IMF) are examples of the many organizations that have helped promote globalization around the world. Due to the successful establishment of such organizations, the opportunities have opened up for businesses, labor and better education for employees on new technology that will essentially utilized by different nations, thereby increasing globalization. However, governments of all trading nations stay readily involved in these activities and continue trying to protect their own people in hopes to strengthen their economy by implementing tariffs or subsidies. This poses the question of what are the key drivers of...