Professor Kathy Bowen
Principles of Management
Due April 2, 2014
Nowadays international business and globalization became very popular and gained much more importance for each and every business company. Based on the quality research and the detailed analysis, this paper would come with the conclusion to show the advantages of globalization and also how globalization and international business can be a big factor in developing world’s economy. Term of globalization can represent and mean a lot of different things, but mainly globalization/international business are known for their flows of trade, finances and factors of production across the ...view middle of the document...
; all of them has brought cultural changes. We can come to the conclusion that globalization is the concept of interaction between people, organization, and different cultural groups and countries that bring significant changes in human lives aspects where the barriers and limitations were dismantled. International business and globalization have a lot of advantages that can create great economic conditions to almost every company out there in the business industry. For example, World Investment Report in 2011 has reported that Coca Cola Company and Toyota Motors gained more than one-third of their operating income from developing their business trade in another countries. Like for example, in China, the Nike Company is projected to double its sales up to $4 billion in 2016. With this been said, it is clear that every company that is venturing outside their home country is gaining a lot financial and economic benefits. It was all due to the fact that those companies were striving for a new business development. By looking at the collected data from World Development Indicator in 2011, we can see that 1.4 billion people live in extreme poverty on less than $1.25 per day and another 1.2 billion live in moderate poverty on less than $2.00 per day, totaling of 2.6 billion people living in a moderate or extremer poverty (MEP). Another 1.4 billion of people live on between $2 and $9.05 per day for a total of 4 billion people living below $9.05 per day at the Base of the Pyramid. The study that was performed by Wolf in 2004 and Sachs in 2005 reveal that globalization economy significantly decreased low income households and enhanced people’s function, with also more jobs opening. Due to globalization and international trade advanced economy has been dramatically increasing over the past few decades as could be seen in increase of volume of trade in goods, services and international...