Global Trends

8712 words - 35 pages
1. Conducting Business during the 21st century has many dimensions. To what extent are national forces being superseded by global trends, especially in terms of multilateral institutions such as the European Union and various economic agreements in the Western Hemisphere and Asia? When a company considers investing internationally, what circumstances should influence how much priority is given to global concepts and/or national differences when evaluating the four alternatives for strategic choice?

Globalization has triumphed since the last century after the end of the cold war in the late 1980s. It has made extensive efforts to unify the world’s economic order, created tremendous benefits for the countries that participate and is the driving force of economic life on this planet. It has not only spurred the growth of the high-income developed countries but as also brought tremendous opportunities to the developing countries. Globalization is viewed as an inexorable economic integration between countries in terms of technological innovations, cross border trade and increasing foreign direct investment (FDI) due to which national economies are merging into one huge interdependent global economic system. Regional economic integration has been one of the most evident trends in the global economy. Sovereign states have created supranational organizations such as the WTO and the EU that are international unions in which member states transcend national boundaries. Businesses want to globalize in order to expand their markets and increase profits. Free trade agreements open door ...

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