Scribd
Upload
11 views6 pages

Phrase 1 Assignment

The document discusses the shifts in the world economy over the past 30 years, highlighting the decline of trade barriers, the rise of emerging markets, and the implications for international businesses in Great Britain, North America, and Hong Kong. It emphasizes the complexity of international business compared to domestic business, citing factors such as legal compliance, currency risks, cultural differences, and political risks. Additionally, the document outlines the impact of the Internet and technology on globalization, along with potential future implications if China becomes the world's largest economy.

Uploaded by

alsusivan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
11 views6 pages

Phrase 1 Assignment

The document discusses the shifts in the world economy over the past 30 years, highlighting the decline of trade barriers, the rise of emerging markets, and the implications for international businesses in Great Britain, North America, and Hong Kong. It emphasizes the complexity of international business compared to domestic business, citing factors such as legal compliance, currency risks, cultural differences, and political risks. Additionally, the document outlines the impact of the Internet and technology on globalization, along with potential future implications if China becomes the world's largest economy.

Uploaded by

alsusivan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 6

Assignment Phrase 1

ID: 222524290094 Name: Alsu Mukhametianova


Answer all the questions
1. Describe the shifts in the world economy over the past 30 years. What are the
implications of these shifts for international businesses based in Great Britain?
North America? Chinese Hong Kong? ( use charts and quality analysis, at least
250 words)

In the past 30 years the world economy has undergone a dramatic transformation
characterized by a decline in trade and investment barriers, the rise of emerging
markets, especially in Asia, and the process of cultural convergence. The economies
that were once self contained economies have become so intertwined that they have
formed into what is now an integrated global economic system. The corresponding
shift has radically altered the roles of major players and opened new possibilities and
tougher questions for various businesses – including companies from Great Britain,
North America, and Hong Kong.
Great Britain: Because developing nations are some of the fastest growing consumer
markets, British firms have had to expand their reach past Europe and North America.
British companies have opportunities and are being challenged by these economies all
with rising consumer spending power. Also, for Asian firms looking to enter in the
European market, the U.K. is often as an appealing gateway. Nevertheless, this creates
competitive threats by those expanding firms.
North America: The same changes are going on in the North American companies.
In particular, the rising economic importance of Latin America is an implication of
their ability to access global markets. But increased prosperity in this region means
opening up a big market right in North America's backyard-- a big one for U.S. and
Canadian companies seeking to supply growing consumer bases closer to home.
Hong Kong: Despite change in its political landscape, Hong Kong continues to be an
important economic bridge between mainland China. For businesses in Hong Kong
the shift to a market economy in China has brought enlarged market access, at the cost
of less secure free market freedom. With potential constraints on autonomy time,
Hong Kong firms have unique advantages from this position.
To illustrate these trends, I'll provide some charts showing Fig.1 changes in global
consumer spending power; Fig.2 shifts in GDP contributions over the past 30 years;
and Fig.3 foreign direct investment (FDI) flows for major economies into developing
regions, showing where North America matters for Latin America, and Asia for
Europe.

Change in Consumer Spending Power ( Developed vs


Emergimg Markets)
40000
35000
30000
25000
20000
15000
10000
5000
0
1994 1999 2004 2009 2014 2019

Developed Markets Emerging Markets

Fig. 1 Change in Consumer Spending Power


This chart shows the rapid increase in consumer spending power in emerging markets
compared to a steadier, slower growth in developed markets. This trend highlights the
opportunities for international businesses targeting consumer bases in developing
regions.

GDP Contributions by Region


90
80
70
60
50
40
30
20
10
0
1994 2004 2014 2024

US Western Europe Emerging Market

Fig. 2 GDP Contributions by Region


Over time, the share of global GDP from the U.S. and Western Europe has gradually
decreased, while emerging markets have gained a more significant share. This shift
underscores the growing economic influence of countries like China and other
developing nations in the global economy.

FDI Flows by Region Over Time


900
800
700
600
500
400
300
200
100
0
1994 1999 2004 2009 2014 2019

FDI to Asia FDI to Latin America


FDI to Developed Economies

Fig. 3 FDI Flows to Different Regions


The flow of foreign direct investment to developing Asia and Latin America has risen
sharply, contrasting with a gradual decline in FDI flows to developed economies. This
trend emphasizes the strategic importance for North American and British businesses
to consider investments in these fast-growing regions.
These charts show visually the ups and downs of the global economy and the growing
importance of other emerging markets and the competitive landscape for Great
Britain, North America and Hong Kong.

2.“Ultimately, the study of international business is no different from the study of


domestic business. Thus, there is no point in having a separate course on
international business,” Evaluate this statement。 (may use charts, and it can be
quality analysis, at least 200 words)
The statement that "the study of international business is no different from the study
of national business" misses several important aspects that distinguish international
business and emphasize the need for a separate course. Although national and
international businesses have similar basic principles, such as resource management,
strategy development and marketing, international business is much more complicated
for a number of reasons.
To begin with, the complexity of international operations:
International business requires knowledge about the business environment in different
countries, which includes compliance with a variety of legal and regulatory
requirements. A company expanding outside its own country faces differences in trade
laws, tax rules, and intellectual property protection issues. These legal complexities
have a significant impact on strategic decisions and require specialized knowledge.
Currency risks and exchange rate management:
One of the key differences in international business is the need to work with different
currencies and manage currency risks. Companies engaged in international operations
face currency fluctuations, inflation and economic instability. Currency risk
management is a necessary skill to ensure the profitability of a business, especially in
markets with an unstable economic situation.

In addition, cultural and social differences:


International business faces challenges related to cultural differences in management,
consumer behavior, and ethical standards. An understanding of cultural characteristics
is essential for effective marketing and human resource management in international
markets. For example, leadership styles that work in one cultural environment may be
ineffective in another, which affects employee engagement and customer satisfaction.

Also, political and economic risks:


International markets are subject to various political and economic risks, including
tariffs, trade barriers, political instability and economic sanctions. These factors can
significantly influence market entry strategies and operating costs, which highlights
the need for specialized knowledge to manage such risks in international business.

Complexity of business processes


The radial diagram below illustrates that international business requires a higher level
of knowledge in categories such as regulatory requirements, cultural understanding,
currency risks, political stability and the economic environment.

Risk analysis
The bar chart shows a higher level of risks, such as currency fluctuations, political
risks, legal complexities and cultural differences, in international business compared
to national business.
Required skills
The third diagram indicates a high need for specialized skills for international
business, including currency management, knowledge of international regulations,
cultural awareness and flexibility in adapting to different markets.

Charts

3.How does the Internet affect international business activity and the
globalization of the world economy? (at least 250 words)

4. The study of international business is fine if you are going to work in a large
multinational enterprise, but it has no relevance for individuals who are going to work
in small firms.” Evaluate this statement. (at least 200 words)

5. If current trends continue, China may be the world's largest economy by 2030.
Discuss the possible implications of such a development for (a) the world trading
system, (b) the world monetary system, (c) the business strategy of today's European
and U.S.-based global corporations,and (d) global commodity prices.
( use data, tables and charts, at least 150 words each question)

6. How have changes in technology contributed to the globalization of markets and


production? Would the globalization of production and markets have been possible
without these technological changes? ( use data, tables and charts, at least 350
words)

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