Scribd
Upload
16 views24 pages

Globalization of Market and Economic Relations

Uploaded by

Maria Theresa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
16 views24 pages

Globalization of Market and Economic Relations

Uploaded by

Maria Theresa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 24

GLOBALIZATION OF MARKET AND

ECONOMIC RELATIONS
GROUP 3
OBJECTIVES
•

•
•

•
•

•
•

•
•

•
It is when goods
manufactured in a specific
country are purchased by the
residents of another country
It can also apply to services
that are provided in one
country and for the benefit of
someone living in another
country. In this transaction, the
seller of the goods or service is
known as the exporter.
This is where goods or services are
brought into one country from
another, where they were originally
manufactured or created.
Goods are normally imported when the
country of origin does not have the
demand for the goods. Or, where the
manufacture of goods in one country is
significantly lower than it would be in
the receiving country. Goods can also
be imported if they cannot be
manufactured in the desired country –
an example being the import of crude
oil.
It is where goods are imported into
a country and then re-exported out,
without being distributed within the
importing country.
This form of trade is used for a
number of reasons, including access
to machinery, the development of
technology and to help reinforce
international relations.
For example, if metal is imported
from India to Singapore, processed
and then re-exported to China, it is
entrepot trade.
Advantageous trade can occur
between countries if the
countries differ in their
Differences technological abilities to
produce goods and services.

in Technology refers to the


techniques used to turn
Technology resources (labor, capital, land)
into outputs (goods and
services).
Advantageous trade can occur
between countries if the
countries differ in their
Differences in endowments of resources.

Resource endowments refer to the


Resource skills and abilities of a country’s
workforce, the natural resources
available within its borders
Endowments (minerals, farmland, etc.), and the
sophistication of its capital stock
(machinery, infrastructure,
communications systems).
Advantageous trade can occur between
countries if demands or preferences differ
between countries. Individuals in different

Differences countries may have different preferences


or demands for various products.
For example, the Chinese are likely to
in demand more rice than Americans, even
if consumers face the same price.
Canadians may demand more beer, the
Demand Dutch more wooden shoes, and the
Japanese more fish than Americans
would, even if they all faced the same
prices.
Existence of The existence of economies of
scale in production is sufficient to

Economies of generate advantageous trade


between two countries.

Scale in Economies of scale refer to a


production process in which

Production production costs fall as the scale


of production rises.
Government tax and subsidy
programs alter the prices charged
for goods and services. These
Existence of changes can be sufficient to
generate advantages in production

Government of certain products. In these


circumstances, advantageous trade

Policies may arise solely due to differences


in government policies across
countries.
•

•
•
Coming to performance, in 2020, One of the world’s largest payment
Walmart, Saudi Aramco, Apple Inc., system, Visa Inc., came into
Microsoft were listed as some of the existence in 1958. Headquartered in
top-performing multinational corporations San Francisco, California, the
as per Fortune Global 500 ranking. The
company revolutionized digital
list features worlds best multinational
companies. In 2019, together they payments with enhanced safety and
generated $33.3 in revenues and user-friendly features. Resultantly,
employed 69.9 million people around the it extended business in 200+
globe. countries.
G o o d s a nd S ervi c es

International corporation bring


goods and services to the foreign JO B CREA TI ON
country, thus giving the local
customers variety. Besides, they International corporation create
also bring in innovative products jobs whenever they enter new
suited to local needs that serve borders as they employ the local
their requirements better. workforce. Top multinational
companies in the US, such as
Apple, Amazon, Microsoft, etc.,
gave jobs to over 1 million people
between 2000-2018.
G RO WT H A N D D EVEL OPMENT
International corporation also uplift
the societal makeup by contributing
to the country’s income,
CO S T EF F I CI ENCY
development and growth.
Developing countries and Companies eye foreign
multinational corporation often countries where the labor and
team up with Foreign Direct raw materials are cheap.
Investments (FDIs). It has financed
Some countries have lower
many development projects to
eliminate poverty and job shortage. tax rates; together, it brings
down the cost.
Bus i n es s Ex p a n si on

The obvious benefit for the


company is the massive Gl o ba l Bra nd Reco gni tion
business extension by
The presence across several
allowing access to a willing
countries improves brand
new market. Coupled with
image and identity among the
cost-efficiency, it makes their
worldwide consumers. With
empire grow immensely.
higher product demand,
consumer satisfaction and
wide acceptability, the price of
the product rises.
Diversified Work Culture

An International Corporation
has a cosmopolitan work
culture since the employees
belong to different parts of the
world but work together for
attaining the company’s goals
and vision.
EXHANGE RATE FLUCTUATIONS

DOMESTIC PROTEST

LEGAL AND REGULATORY


BARRIERS

ECONOMIC CRISIS

SOCIO-POLITICAL UNREST

CULTURAL UNACCEPTANCE

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy