What Is a Ibm

1. What is globalization?

Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world.

Discuss about the impacts on International Management of firm in globalization?

Natural Advantages

* Gaining access to markets around the world allows each country to fully leverage its own unique natural advantages. A natural advantage is an edge that allows countries in specific geographic regions to produce particular products or commodities at a lower cost or higher quality than others. Without international trade, natural advantages do not add much to the economy. For example, it wouldn't matter much to Saudi Arabia that the country sits on vast oil resources if it did not have the ability to sell and ship the oil around the world. It is the access to global trade that allows nations to accumulate wealth from all around the globe.

Trade Opportunities

* The globalization of business processes and etiquette opens up new opportunities for importing and exporting products and services. A strong driver of globalization, for example, is the English language as an international business language. Using English, a businessman from Scotland can communicate clearly with a partner in China, who can communicate with a client in Africa and so on. The gradual melding of business etiquette helps to facilitate business communication as well. Issues, such as handshakes, speaking distance, body language and taboo topics of conversations, are beginning to lose their power as potential deal breakers as business people around the world study and understand each other's cultural norms.

Procurement and Outsourcing

* The opening up of global...