Global Interdependencies, Essay Example

The current global tendencies and movements are great challenges and, at the same time, important opportunities for international business growth. It is true that strategic imperatives and environmental changes have contributed to the current international business growth in recent years. Strategic imperative simply means the need to leverage core competency, seek new markets and match the action of the rivals. The strategic imperative shows the reason why firms in the current world have been internationalizing their operations.  Different factors have played a part in the current increase in growth in international business (Markgraf, par 5). These factors include significant political and technical environment changes, contributing to the explosive growth of international business activity. Furthermore, the growth of the internet and other technological factors has contributed to redefining the global market and way of doing business in the current world. Therefore, this paper aims to discuss major factors that have led to increased growth in international business in recent decades.

The current business trend shows that as the economy grows slowly at home, businesses look for a broad market internationally to remain profitable. Although they have been increasing growth in international business, companies in the current world have t strategies to venture into the business market. Before entering the business market, the company has to examine both domestic and international markets informing their major trends. It can take advantage of those factors in the international that may favor company products. In addition, the international environment is evolving daily, thus the need for the business to take advantage of changing environment to create a niche for the corporate. Consequently, the global economy has contributed to the evaluation and growth of business outward and inwards bound in a country (Luthans, Fred and Jonathan, 22). For instance, global economic factors such as market economy, mixed economy and command economy have played a part in the expansion of both domestic and international business.

Moreover, factors like growing emerging markets have contributed to the growth in international business in the current world. For instance, developing countries always see the highest economic growth when they come close to the standard of living of those developed countries. Due to this factor, businesses that want to make more profit by venturing into an international business will benefit developing countries. This is evidence that the current emerging market in the world contributes to the wide growth of the international business (Markgraf, par 7). Another vital factor is speed innovation which has made many companies come up with new products. It is true that innovation leads to increased demands, thus making the businesses extend their business to other locations so that consumers can get them easily in the market.

Also, a saturation of domestic markets in the current world has made some businesses lose their customers to their rival companies because of product quality. In most developed countries like Japan, they continue to produce similar products over the years, which has led to saturation of the domestic market. Therefore, there’s a need to look out for new markets internationally for their products. Furthermore, the growing consumer demand is another factor that has led to the great growth of an international business. It is true that consumer demand is something dynamic in nature; thus, it keeps on changing with time (Luthans, Fred and Jonathan, 284). For instance, globalization has led to increased consumer demands for foreign products; thus, companies have to expand their businesses to other nations to cater to this high demand.

References

Luthans, Fred, and Jonathan P. Doh. International Management: Culture, strategy, and behavior. McGraw-Hill, 2021.

Markgraf, B. (2019, March 5). Major trends in International Business. Small Business – Chron.com. Retrieved November 24, 2021, from https://smallbusiness.chron.com/major-trends-international-business-60529.html.