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The Impact of International Business On The Global Economy: Niki Geiersbach
The Impact of International Business On The Global Economy: Niki Geiersbach
Niki Geiersbach
Niki Geiersbach
Abstract
With the dawn of globalization, international business is becoming increasingly popular. Multinational
organizations are among the most profitable in the world. A company needs to be aware of the language
and culture of the country where it plans to embark with its investment. Politics and laws of the nation
can either make international business easy or hard. With the success of international business, its future
is gleaming, on a global scale.
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Economic Integration
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Multinational Corporations
A multinational corporation is a company
or enterprise operating in several countries,
usually defined as one that has 25% or
more of its output capacity located outside
its country of origin. The worlds four
largest multinationals in 1994 were General
Motors, Ford, Exxon, and Shell. Their
total sales exceeded the gross national
product of all of Africa, and the top 100
multinational
corporations
controlled
$3.4 trillion in financial assets. In 1993,
multinational corporations accounted for
one-third of the worlds industrial output,
with sales of $4,800 billion.
They are
seen in some quarters as posing a threat
to individual national sovereignty and as
exerting undue influence to secure favorable
operating conditions. Unsuccessful efforts
were made 1992, under UN auspices, to
negotiate a voluntary code of conduct
for multinationals, but governments and
corporations alike were hostile to this idea.
In 1993, 11 of the 100 largest multinational
corporations were British (Hutchinson
Family Encyclopedia).
Strategic Planning in
International Business
The strategic plan must be developed and
owned by the management team that has the
job of implementing it. Strategic planning
in international business must be objective.
After international business research, the
international business must define a first year
operating budget, build an infrastructure
flexible enough to meet expansion needs,
and prepare the company for expansion. It
must understand different growth options
available for developing transatlantic
operations, and know the risks and rewards
of each. The international business must also
build a long-range plan, and then adhere to
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International Marketing
International Marketing Services, Inc,
(IMS) is a uniquely positioned international
marketing firm. Since 1986, it has assisted
over five hundred US, European and Russian
companies export products, develop joint
ventures, locate foreign investment, and
form strategic relationships. Its extensive
experience with business practices and
culture in North America, East-Central
Europe and the C.I.S. is the foundation of
its success. IMS cross-cultural perspective
allows it to rapidly overcome significant
obstacles to export sales and joint ventures
that most firms are unequipped to deal with
alone. The company also brings broad
analytical skills to bear on its global projects.
This includes substantial international trade
and joint venture negotiations expertise,
market and competitive assessments,
macroeconomic, financial and statistical
analyses, and political risk evaluations. In
addition to broad skills, IMS employees hail
from diverse backgrounds and industries.
The company offers a full spectrum of
services ranging from one-time primary
market research assignments to marketing
and strategy consultation where it walks
its clients through each difficult stage of
expanding their business presence abroad
(International Marketing Services). The
successful operation of IMS indicates the
International Services
International businesses like Shell provide
international services.
Shell Services
International provides, among many other
specialized services, electricity in the US.
Shell Energy was formed in 1997 to pursue
new growth opportunities in the retail
electricity and gas markets that have recently
been opening to competition. Today, Shell
Energy serves more than 300,000 gas and
electricity customers in Ohio and Georgia
(Shell Services International).
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Multinational Financial
Management
International trade, financing and
investments have grown at an extremely
rapid pace in recent years, and the operations
of corporations are increasingly becoming
multinationalized. Corporate executives
buying and selling goods and services, and
making financing and investment decisions
across national boundaries, have formulated
policies and procedures for managing cash
flows denominated in foreign currencies.
These policies and procedures, and the
related managerial actions of executives,
change as new relevant information
becomes available and this field is that of
multinational financial management (Reid).
Countertrade
Countertrade simply refers to listening
to the companys international customers
and meeting their needs. This could be
in the areas of hard currency generation,
technology transfer, or marketing assistance
(The American Countertrade).
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Organization, Implementation,
and Control of International
Operations, and their Future
Effective management of international
business operations includes efficient
management of finance, personnel,
product development, marketing, and
communication.
This is so that the
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References
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