Please respond to the following two statements using the guidelines listed below with a minimum of two paragraphs and one reference each.
ï‚· Provides concrete examples from the readings to support postings
ï‚· Integrates prior readings in postings
ï‚· Integrates personal observations and knowledge in an accurate and highly
ï‚· Presents new observations
ï‚· Constructively responds to classmatesâ€™ postings
ï‚· Participates in all module discussions
ï‚· Posts are organized and information is presented in a logical sequence
ï‚· Word choice and sentence structure are suitable for graduate-level work
- International business is not just for multinational enterprises, but all small and large companies. There are very few stores that sell only products that were made entirely in the United States only. The United States imports and exports to allied countries regularly, which is how we are able to be of the richest countries in the nation. The text describes globalization as the shift toward a more integrated and interdependent world economy. (Hill, p.6) Being an integrated and interdependent country has allowed many small businesses to become multinational businesses. The ideas, products, and ability to expand beyond the originating country of a business are due to globalization between countries. When we look at the back of the products in our home, many of them will say they were manufactured in other countries. That is not to say that our products are not available or wanted. The reason simply may be that many companies have found that products made in other countries are sometimes less costly for business to purchase here in the United States, which in turn will give them a higher profit in return. The knowledge of international trade laws is important for all import and export business transactions. About forty years ago the United States had the highest percentage of industrial power and by 2010, China took over the lead. Something that the United States perfected many years ago has now helped economies such as China, India, and Brazil expand greatly. The products created in other countries and then brought by small and large companies alike has helped to create a strong supply and demand for many business and helps to keep them growing in profit, staff and reputation. Apple is a very good example for how global business is beneficial to companies created here in the United States.Apple was founded, built, and created here in the United States but currently have their iPods, iPads and iPhones manufactured over seas. A report put out in January from CNBC, revealed that the electronic mogul Apple has 17 factories. â€œAll but one of the suppliers is owned by a Taiwanese company, and 14 of the 17 factories are located in China. (www.cnbc.com) Apple is a company that knew their trade, labor and political systems of the countries they chose to business with. So though the very popular product is not made in the United States, their main headquarters are. So, like Apple any new and uprising company can become just as successful when all options are studied. Labor, importing and exporting laws are all beneficial in the growth of all business.
2. â€œThe 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.”
The statement above may have been relevant for individuals studying business prior to the advent of the Internet, but today, it is as naÃ¯ve as it can be in business. The study of international business is a must for anyone who is working in either a multi-national corporation or a small local business. Understanding business here in the United States or that of any other country, only serves to enhance the opportunities of small or large business as our planet is becoming a single marketplace. As this single global market continues to emerge, businesses, both large and small, need to understand how internationally it works as business from other countries set-up in the United States and vice-versa. So, the need for knowledge of international business is warranted for all business majors.
With the creation of the Internet, any business can be global as the reach of the individual small business is just as far as that of a multi-national corporation. â€œThere is wide demand for American-made products and services outside the U.S., market observers say, and one way to boost jobs is by encouraging small companies to export — especially as the Internet has opened the door to use lower pricing to claim some of corporations’ international market shareâ€ (Kulikowski, 2011). With this demand for American-made goods, small business can easily expand and grow; but, growing internationally would take the education to understand the business intricacies as â€œcountries differ in their cultures, political systems, economic systems, legal systems and levels of economic development,â€ meaning that a small business needs to know what is different around the globe (Hill, 2013).
Global commerce through the Internet allows small business to compete equally with the larger corporations, especially in the smaller niche markets. â€œExpanding internationally can put a small business on â€˜equal footing with these larger corporations,â€™ [says Mark Luppi, head of business banking at HSBC Bank USA], Small businesses can also be more nimble and cost effective in providing services overseas. It really creates a more level playing field in the international space” (Kulikowski, 2011). Smaller business can take advantage of â€œthis new reality [which] helps all kinds of smaller businesses, like the small manufacturer making a unique product, who can create awareness about his products thousands of miles away through the internet, and get orders for itâ€ (Global Marketing For Small Business). Without the knowledge of how the international marketplace works, small businesses may be losing out on a great opportunity to grow.