CIE Assignment

Course: International Business Environment

Batch 2018-2020
Section ‘B’
2nd Semester

1.10 (d) “Is Globalization Inevitable?”

1.10(a) “How have changes in
Technology Contributed to the
Globalization of Market and
Production? Would the Globalization of
Production and markets have been
possible without these technological
changes?
1.10(e) How would International
Business work if national regulatory
environment were stricter?

Under the Guidance of

Dr Sudhir Raj K
Professor, JKSHIM, Nitte
Date of Submission
02-04-2019
 1.10 (d) “Is Globalization Inevitable?”
Globalization has turn out to be an inevitable a part of our lives. We’re
continuously surrounded via the outcomes of globalization- whether or not it is buying
an imported product or gaining knowledge of a new language or working for a global
enterprise. Mainly in cosmopolitan cities such as the big apple and London, billboard
signs in various languages and eating places of different international cuisines are
common sights. However, the query nevertheless lies inside the desirability of
globalization. Because our day by day lives are dependent on globalization, we haven't
any choice however to desire globalization
We often perceive globalization because the source of the cultural “melting pot”.
Because of elements such as immigration and technological improvements, the sector
has come to be a large mixing pot of various ideologies, cultures, ethnicities, and
cuisines that originate from countries all around the world. But due to this manner of
integration, nearby identities, ideologies, and traditions are regularly challenged. As
speaker Clive Bloom says, “national identities and nearby thoughts conflict”. For
cosmopolitan cities like NY and London, it is tough to set up what precisely the “country
wide” identity is made from. Like New York, London is the house to many first and
second generation immigrants. As of 2010, 12% of United Kingdom’s populace is
overseas-born immigrants in line with Bloom. This wide variety is assumed to turn out
to be doubled inside the next couple of years because of the unregulated influx of
immigrants of the beyond couple decades.
These immigrants bring no longer most effective themselves however their local
“identities” with them. It’s miles easier for some ethnic companies to assimilate into
British society because of the similarities of their ideologies and subculture with that of
the British’s. Bloom stated how a million immigrants from Poland of remaining year
were able to assimilate into British culture by using mastering to talk English quickly
and by means of absorbing British values. Also, Hindu immigrants ever since the British
Raj have included into British society pretty fast and effectively. Like the Hindu
immigrants, the Polish immigrants had been capable of get jobs inside the British
personnel. So, how do specific neighbourhood cultures thrive in cosmopolitan towns
like London? Their achievement is generally due to their capability to be resilient to the
modifications in their time and environment. According to Kwame Anthony Appiah in
Cosmopolitan infection, cultures are concern to change primarily based on the wants
and needs of the human beings. Consequently, a lifestyle shapes itself based
at the adjustments and variations that come in conjunction with the
beginnings and ends of eras. Appiah similarly mentions, “Cultures are
made from continuities and adjustments, and the identification of a society
can survive via these adjustments”. To Appiah, even lengthy-lived
traditions have been once improvements-products of change. Alongside the
economic, social, and cultural component of globalization, generation has
played a full-size role in reinforcing the relationship between international
locations. Globalization and era is interdependent. The ever developing
interplay between nations serves as a catalyst for the production of new
technology. Likewise, new technological breakthroughs of this century have played a
crucial role inside the economic, social, cultural integration of the world’s nations.
Inside the technological issue, globalization has made matters that were
deemed not possible twenty years ago, now feasible as well as on hand. The internet
has verified to be a breakthrough phenomenon The internet has stripped the bounds of
nations to permit the countless waft of data and know-how. Information, media, and
ideas that had been as soon as local to at least one location can become global in a be
counted of minutes or even seconds because of the energy of the net. Information and
media via technological mediums along with television and the net has led to a brand
new era of a “facts revolution” as Fareed Zakaria of The upward push of the relaxation
calls it. Records is at our fingertips “24/7” across the clock. We are able to receive
information and pics of
Terrorist bombing in a town the world over from us just moments after the
incident. but, Zakaria argues that because of the “immediacy of the snap shots and the
intensity of the 24- hour information cycle”, militant terrorist corporations inclusive of
Al Qaeda have used this to their advantage by the usage of motion pictures to unfold
terror in preference to doing acts of terror.
On the latter, the internet has allowed people from throughout the globe to
attach and proportion information much fast. Buyers and sellers of stock markets
everywhere in the world are capable of tune the fluctuations of stock costs within the
comforts of their computers and cell telephones. Businessmen no longer need to fly
throughout continents to wait meetings and conferences in other countries but will have
video conferences. NYU overseas college students use software program programs
which includes Skype and Tokbox to talk with their friends and families back at home.
Through the improvements of technology, we are able to feel an awful lot “closer” to
places which might be midway around the world from us. Technology is imbedded
into the very composition of a society. we're continually seeking out methods to be
timely efficient in addition to fee green- whether or not it's miles finding new, quicker
techniques of travelling or discovering green strategies of production. So long as
generation is gift, globalization can be gift.
Because of the search for timely and fee green methods, nations like America and
incredible Britain has resorted to acquiring merchandise thru the import and export
buying and selling. because of hard work legal guidelines present in the united states
and super Britain, goods and services made in the international locations might be
some distance extra expensive than buying the identical goods and offerings from
international locations like China and India which do now not have strict hard work
legal guidelines in area. Individuals and British human beings are able to fulfil their
desires by taking part in items and offerings for a less expensive rate and the Chinese
language and Indians are capable of expand their mass manufacturing of customer
goods via export trading, consequently, creating a boom of their commercial and
marketplace financial system. But, there are downfalls for both aspects. The united
states and extraordinary Britain lose jobs inside their nations as they develop an
increasing number of depending on reasonably-priced foreign hard work. China and
India flip to exploitation (toddler exertions, harsh and risky running situations, long
hours, low earning) of their employees as their foremost aim is to export as an awful
lot as they can with the least quantity of expenses. Despite the fact that, the shift of
manufacturing to growing commercial nations leads to the introduction of national
identities. As the economic international locations flourish with their export buying
and selling growth, advent of latest markets, and increase in employment, their
“economic development and success” leads them to “trying recognition and recognize
at some stage in the world”. (Zakaria) Globalization is a means to a given up for
growing international locations that have been once impoverished to gain their
reputation within the world. Via international trade and industry, they're provided a
risk to make their nations into leading world economies. Particularly for the growing
international locations, globalization is suited due the useful effects to their expanding
political, technological, and social roles in the world.
1.10(e) “How have changes in Technology Contributed to the
Globalization of Market and Production? Would the
Globalization of Production and markets have been possible
without these technological changes?
Technological changes have considerably contributed to the globalization of
products and markets, and expanded the creation of a global village. at the same time
as growing globalization of markets has been taking vicinity considering that before
either Marco Poloor Christopher Columbus travelled across the globe on the lookout
for alternate, recent technological developments have introduced the arena closer
together greater quickly than at any time in the past. tendencies in statistics processing
and communique have decreased the prices of managing a global manufacturing
machine, and upgrades in transportation have made the shipment of products timelier
and less luxurious than at any time in the past. Global firms can find facilities anywhere
it is most fine, coordinate the activities between centres, and ship products to client’s
worldwide greater price successfully than at any time within the past
Technology complements globalization. In beyond two decades, generation burst
out like an explosion, simply, the enhancements of technology make our lives plenty
extra convenience. And, the advanced technology in microprocessors, net, and
transportation allow the spreading out of globalization. Hill, C., (2001) said
"Globalization has most important components: the globalization of markets and the
globalization of product." In different words, the converting in generation might cause
an influence on globalization of markets and globalization of production the widely
use in microprocessors and telecommunications increasing the amount of statistics
being transferred, but decrease its cost. This is very helpful in emerging markets. The
possibilities for companies to burn up corporations are raised, because of plummeting
in global verbal exchange value. Up to date records may be amassed, and monitoring
foreign places markets fashion could end up easier. Moreover, populace of using net
grows continuously given that 1995 (Hill, C., 2001). This facilitates to create an
international target market; advertisings are not restrained by way of geographic
location anymore. Products can sold at foreign places, McDonald's restaurant located
in Tokyo. And, the fee of transportation plummeted, due to the revolutionized in
transportation commercial enterprise, also beneficial for growth of business. Producers
can transport products at a decrease price and in a shorter time. As the fashionable of
globalization of production, efficient sports spread out over the world, invention and
extensively use of microprocessors and internet help supervisor to manipulate the
effective activities, and simpler to communication to different inside the manner. The
dispersal of manufacturing, for example Hewlett-Packard separated its operations
activities to exceptional places, but decreasing fee at the identical time (Hill, C. 2001).
Because the reducing cost in transportation, many businesses move their
manufacturing plant life to nations that provide less expensive uncooked substances
and nature sources, in order.
Advancements in technology have been a major contributing factor in the
globalization of markets and production. Technology has allowed instant
communication and sharing of data to take place worldwide. This ability to share
thoughts, information and ideas has allowed business to reach a many new
customers. Without the use of technology, globalization may have still occurred
but on a smaller scale. Global trade has always existed, but it has been slow and
cumbersome. Technology has allowed trade transactions to increase because of the
quickness and ease with which they are now performed
1.10(e) How would International Business work if
national regulatory environment were stricter?
Foreign laws and rules
Regulation and rules in global enterprise alongside getting your employer structure in
location, gaining a comprehensive know-how of the local legal guidelines and rules
governing your goal markets is key. From tax implications thru to buying and selling legal
guidelines, navigating criminal requirements is a critical feature for any a hit international
commercial enterprise. Eligibility to alternate is an extensive attention, as are ability tariffs
and the felony charges related to entering new markets.
Airbnb bumped into hassle in 2014, with a crackdown on marketed apartment properties
falling outdoor nearby housing and tourism rules. The employer was pressured to pay a
€30,000 best for a breach of neighbourhood tourism laws in Barcelona.

Popular payment method

The proliferation of international e-trade web sites has made selling goods remote places
easier and greater inexpensive for corporations and purchasers. However, charge strategies
which are typically regularly occurring in your house market might be unavailable overseas.
Determining proper charge strategies and making sure secure processing need to be a critical
consideration for corporations who seeks to alternate the world over.
Accepting famous international payment techniques via corporations like Worldpay, as well
as accepting neighbourhood price methods, along with JCB in Asia or Yandex cash in
Russia, can be a great choice for big global companies. Accepting cord transfers, PayPal
bills, and Bitcoin, are different possibilities, with Bitcoin customers profiting from no
financial institution or credit score card transaction expenses. Despite the chance of
fluctuating cost, the lack of prices is one of the motives a number of on-line agencies,
inclusive of WordPress, the Apple App keep, Expedia, and some of Etsy sellers receive
Bitcoin.

Currency Rates
Even as charge placing and fee methods are essential considerations, forex charge
fluctuation is one of the most hard worldwide enterprise problems to navigate. Tracking
change quotes have to consequently be a valuable a part of the strategy for all global
businesses. But, international economic volatility could make forecasting income in
particular tough, particularly whilst quotes vary at unpredictable degrees.
Primary fluctuations can seriously affect the stability of commercial enterprise charges and
income. as an instance, if your corporation is paying suppliers and production fees in U.S.
bucks, but promoting in markets with a weaker or extra unpredictable foreign money, your
employer may want to turn out to be with a much smaller margin — or maybe a loss. One
way to shield yourself in opposition to big fluctuations in foreign money is to pay suppliers
and manufacturing costs inside the identical forex as the only you’re promoting in. this could
suggest switching to more neighbourhood manufacturing where viable with a view to better
balance your outgoings and income sales.

Global accounting
The main legal areas to consider when it comes to doing international business, tax
compliance is perhaps the most crucial. Accounting can present a challenge to multinational
businesses who may be liable for corporation tax abroad. Different tax systems, rates, and
compliance requirements can make the accounting function of a multinational organization
significantly challenging. Accounting strategy is key to maximizing revenue, and the
location where your business is registered can impact your tax liability. Mitigating the risk
of multiple layers of taxation makes good business sense for any organization trading
abroad. Being aware of tax treaties between countries where your business is trading will
help to ensure you’re not paying double taxes unnecessarily.

A focus on tax efficiency is often the aim of international accounting efforts. In the European
Union, companies may benefit from the Common Consolidated Corporate Tax
Base proposal, whereby companies with operations around the EU can limit tax liability to
one corporate center. Tax consolidation is a feature of several multinationals’ decision to
be headquartered in Dublin, as Ireland is known for its “business-friendly” corporate tax
policy. Well-known companies with operational headquarters in the Republic of Ireland
include Google, Facebook, and Intel.

Value calculation and global pricing method

Setting the price for your products and services can present challenges when doing business
overseas and should be another major consideration of your strategy. You must consider
costs to remain competitive, while still ensuring profit. Researching the prices of direct,
local-market competitors can give you a benchmark, however, it remains essential to ensure
the math still works in your favor. For instance, the cost of production and shipping, labor,
marketing, and distribution, as well as your margin, must be a taken into account for your
business to be viable.

Pricing can also come down to how you choose to position your brand — should the cost of
your product reflect luxury status? Or will low prices help you to penetrate a new market?
Swedish furniture giant Ikea, known in Europe for its low-cost value, struggled initially in
China due to local competitor costs of labor and production being much cheaper. By
relocating production for the Chinese market and using more locally sourced materials, the
company was able to successfully cut prices to better reflect its brand and boost sales among
target consumers.
Global environmental issues

Because the environmental risks and outcomes of climate change are getting better
understood, sustainability is excessive on the schedule of many most important global
organizations. Latest worldwide legislation and suggestions, consisting of the UN’s
Sustainable improvement goals, have placed environmental problems at the leading edge of
worldwide business improvement. The Ashridge Centre for commercial enterprise and
Sustainability at Hult researches revolutionary methods that agencies can expand and put in
force more environmentally sustainable enterprise models.

On a realistic degree, in case you’re considering increasing your business overseas, it’s
crucial to be aware about the country-unique environmental policies and troubles associated
with your industry. A few key considerations encompass how your manufacturing
techniques might affect the nearby surroundings via waste and pollutants. Past a criminal or
moral incentive to be extra eco-friendly, setting up environmentally aware business practices
can attract new, forward-thinking customers in your company. With some of manufacturers
consisting of Dell, Renault, and dust jeans main a shift towards the circular economy, there
may be an opportunity and demand for converting manufacturing strategies and consumer
conduct to establish a more sustainable destiny for the surroundings and society as a whole.
 References

Hill Hult Mehtani. {2019}. “International Business” 11th Edition. Charles W.L
Hill,G.Tomas M, Rohit Mehtani . McGraw Hill Education (INDIA) Private Limited,
CHENAI. PP 3-6, PP239-247
Work Book prepared by Dr Sudhir Raj Professor, JKSHIM, Nitte ,PP19-20
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