Name: Oscar Villacis Breilh

Factors of Global Change

Based on the information received and the e-book Unit 1 pgs 1-17, choose 5 of
the factors that have made a change in international business and explain 2
examples per each factor. A total of 10 examples will be the final product of
application.
Examples of Changes in Global Business Environment
1) Spread of Regional Trade Agreements

a) Central American-Dominican Republic Free Trade Agreement (CAFTA-

DR) s the first free trade agreement between the United States and a
group of smaller developing economies: our Central American neighbors
Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, as well as
the Dominican Republic. The CAFTA-DR promotes stronger trade and
investment ties, prosperity, and stability throughout the region and along
our Southern border.

b) Asia-Pacific Economic Cooperation (APEC). ensures that goods,

services, investment and people move easily across borders. Members
facilitate this trade through faster customs procedures at borders; more
favorable business climates behind the border; and aligning regulations
and standards across the region. A product can be more easily exported
with just one set of common standards across all economies.

2) Technological Development

a) (AI) Artificial Intelligence, Facebook, Google, Amazon, Microsoft, etc.,

are working on the development of this technology (Ai) is the
reproduction of human intelligence actions by machines, mainly
computer systems. These procedures include learning, reasoning and
self-correction. Looking at the stride at which establishments are
accepting this technology, AI development is in trend today and
applications of AI contain expert systems, speech recognition and
machine vision.

b) Information Security Enterprises and its taskforce that uses the digital
media are constantly in need for information security measures specially
to ensure confidentiality, integrity and availability. Each enterprise,
depending upon its own workflow, requirements and technological build
need to implement a security policy that takes care of all aspects of
security, be it any phase of the project.
3) Decreasing Trade Barriers

a) Some years ago, China cuts import tariffs on almost 200 consumer
goods from an average 17.3% to 7.7% on products, including
pharmaceuticals, food, health supplements and clothing, to help spur
spending and economic growth.

b) 50% tariff on imports of washing machines. The US Trade body has

recommended tariffs of 50% on imports of washing machines –
especially from South Korean manufacturers IG and Samsung. The
Trade body is concerned IG are selling washing machines below cost
and dumping surplus supply on the US market. US manufacturer
Whirlpool brought the case.

4) Diminishing Effectiveness of National Borders

a) Currently the companies being native of their respective countries, have

among their workers and managers people from other parts of the world
that no matter where they come from. For example after Renault (French
company) acquired Nissan (Japanese company) placed a director from
Brazil, since, what is important today is his professional preparation,
leaving aside the traditional being "if it is an Ecuadorian company, the
employee must be from Ecuador"

b) Today we can several multinational companies that thanks to their

category has diminished national borders, for example see a MC
Donald's establishment (American company) in various countries around
the world such as Japan or Russia or South American countries such as
Chile, Argentina or Ecuador, coupling an American meal in other cultures

5) Increasing Interdependency Among Nations

a) China and the United States are economically interdependent, as both

need each other's products to develop. For example, the growth of the
automotive industry in the United States had implications in some
Southeast Asian countries that became suppliers of rubber, thus
generating a dependency relationship. As the development of the
industry increases, the relationships are diversifying or strengthening.

b) When the covid-19 problem occurred, Ecuador, one of the main

exporters of bananas and shrimp, found themselves in difficulties when
transporting it to China and the USA because with the high risk of
contagion, the products began to have an overabundance in the country