International Business and Chile



International Business and Chile

Task 1

Question 2

International trade has become one of the most important issues in domestic as well as international politics in recent decades. Although a growing number of historically oriented studies have shown that trade has been a salient issue among empires, states, and cities for centuries, it has become such a critical contemporary issue because countries' economies are now, more than ever, open to trade flows.

Unlike domestic trade, the environment changes when organizations cross international boundaries. Usually an organizations that has been working locally, understands its local environment. However, it does not understand the international environment that well. Therefore, before going global, organizations should devote more time and all other resources to fully understand the environment in other countries. Following are some of the important factors of an environment that may change with time (Shenkar, 2008). The benefits of taking business international involves competitive position, new business and client become more valuable, company image and brand improves, new segments are identified and created, innovations are rapidly exploited, exchange of goods and services is promoted, domestic market expands, relationship and credibility with local partners is developed and economies of scale is developed.

Question 4

It's not true that the study of international business is no different from the study of domestic business. To have better understanding about international business, it's essential to have a wide theoretical perceptive of why trade and ventures takes place across countrywide borders. Trade and investment can be scrutinized in provisions of the relative benefit of countries. Domestic and global ventures, in public and private sectors, allocate the businesses intention of execution productively to carry on the processes. Private ventures look for profitable functions too. The question arises that why is global business diverse from the domestic? The answer is the differences prevalent across borders (Buckley, 2005).

Globalization of trade is a sign of growing interdependence between humans, human activities, economic and political systems. With the development of new information technologies and communication networks, we are witnessing a boom in cultural exchanges, scientific, technical, expansion of democratic ideas, essential to advances in terms of fundamental rights (Punnett, 2007). There are companies that benefit from globalization and companies that suffer from globalization. A company must think and act much more international today than it was several decades ago. When investing abroad it must also be considered. Companies must actively take on these challenges and align itself more and more on competition. The previously existing strictly hierarchical organizational structures are broken, flattened management levels.

Technical developments in communication and telecommunications are an important factor in the internationalization of trade in goods and services. The globalization of trade led to the development of rules at regional and global levels. This is particularly the rules of the various regional unions, and at the forefront of European Union rules. It also rules on a global level, the GATT, the WTO rules (Welch, 2004).

The globalization has expanded the worldwide trade, helped in a number of advances in the field of ...