Economics of international business sample presentation

Wednesday, 20 May 2015.

There are several factors that have played a role in increasing interdependence among global trading countries. These factors have both economic and political prospects. The development of economic bodies or organizations in different regions, which should focus on the development of cooperation outside the country, is one of the most important factors that have led to such interdependence. An example is the creation of an EC or a European Community that has led to increased interdependence among different trading countries around the world

In addition, transnational corporations continue to gain increasing importance. It has also strengthened the interdependence of trade corporations and countries. The interdependence of world oil markets has also been strengthened in the 1970s. Finally, global trading bodies maximise globalization, using common currencies, such as the way the euro is used over a period of 21 years

Globalization is a process of cultural, political and economic integration and the integration of huge enterprises and countries. Globalization entails different consequences of globalization for countries, consumers and business structures. Another important benefit that people derive from globalization is the strengthening of the development of international companies and trade. For example, Coca-Cola grew because globalization expanded the scope of the market

Globalization has also accelerated the process of acquiring and disseminating information through globalization

However, globalization has led to an increase in unemployment. This is because most multinational companies send professionals and staff to their affiliates in other countries. This reduces employment opportunities for the local population. Globalization has also increased the dependence of some countries on others to realize development goals (Tajgardoon 137). In addition, globalization is one of the factors contributing to environmental destruction and pollution

The structure of international trade in the modern economy affected by globalization is influenced by the various effects of transport costs. When compared to domestic trade, transport costs are higher for international trade. This is because one of them must go beyond the borders of the country. International trade patterns are limited by increased transport costs and reduced trade. This is due to the high cost of doing business after the border. International companies therefore evaluate vehicles including ocean/sea, air and road

Most patterns of international trade depend on transport costs, and this is integrated into the cost of final services and products. International trade is increasing by reducing transport costs, as countries and investors can deliver more services and goods around the world. In addition, international trade is driven by transport costs associated with the volume and sequence of international transactions or trade volumes

The vital factors underlying the exchange rate on the free market include the demand and supply of the currency. When demand for currency is high, the exchange value will be improved or converted, provided that other factors remain constant. This is due to the desire to obtain services and goods from other countries. This means that demand for currency is important for the exchange of currency on the free market

Another factor is the number of services and goods that the country wants or wants to import or export. How monetary flows are important for determining the value of currency exchange. In addition, the impact or result of imports or exports to other countries also determines the value of foreign exchange in the free market

The short-and long-term exchange rates are influenced by several factors that are influenced by globalization. Among them is the importance of differences in inflation. Low inflation also increases the value of the currency and its purchasing power relative to other currencies. The differences between interest rates are also another factor

When central banks manipulate interest rates, they affect exchange rates and inflation. When interest rates change, they manage currency values and inflation. The current account deficit also affects both short-term and long-term currency values and exchange rates. Other important factors influencing currency values and exchange rates include economic indicators, public debt, monetary policy, trading conditions, market speculation, speculation and political stability (Benigo 248)

Benigo, Gianluca, Pierpaolo Benigno and Salvatore Nistico. “Risk, Foreign Exchange Policy and Exchange Rate.”

Kale, Sudhir H. and Sangita De. “Impact of Globalisation on Individual Customers: Implications for Marketing.”

Tajgardoon, Golamreza, Mehdi Behname and Khosro Noorohama. “Impact of globalisation on employment: evidence, Islamic state.”

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