The growing acceptance of the policy of economic liberalisation and globalisation has led to fast expansion in international business. International business comprises a large and growing portion of the world’s total business. Products developed in one country are finding enthusiastic acceptance in other countries. Hence, trade is increasingly global in scope today.
Vigorous expansion of the world economy, partly due to the governmental policies, aimed at ensuring economic growth, has provided the principal impulse for the growth of international trade. The gradual liberalization of trade restrictions and import quota, reduction in custom tariffs and the vigorous export promotion activities of several nations have contributed to the growth of international trade. Increased flow of funds from the economically advanced countries to the developing ones has also helped in its growth. international businesses grew in scope and size to the point where at the moment; the global economy is dominated by multinationals from all countries in the world.
Above all, international businesses have to ensure that they blend the global outlook and the local adaptation resulting in a “Glocal” phenomenon wherein they would have to think global and act local. Further, international businesses need to ensure that they do not fall afoul of local laws and at the same time repatriate profits back to their home countries. Apart from this, the questions of employability and employment conditions that dictate the operations of global businesses have to be taken into consideration as well.
The fact that many third world countries are liberalizing and opening up their economies, there can be no better time than now for international businesses. This is balanced by the countervailing force of the ongoing economic crisis that has dealt a severe blow to the global economy. Finally, international businesses have to ensure that they have a set of operating procedures and norms that are sensitive to the local culture and customs and at the same time, they stick to their brand that has been developed for global markets. This is the challenge that we discussed earlier as “Glocal” orientation.
In conclusion, international businesses are facing the best of times and the worst of times at the same time and hence, the savvy and astute among them would succeed in this “Shift Age”.