Key Term: Fixed Assets

Institution affiliation

Name of Student

Course title

Submission Date
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Fixed Assets; Rationale of the discussion

The term of interest is fixed assets. Being a student of business economics and

international relations, studying and analyzing the above-mentioned term will serve right my

curiosity on how assets, especially fixed assets move within the global market. I intend to study

and analyze the movement of fixed assets in the international market and how it impacts the

entry of business organizations into the global market. with this analysis, I intend to understand

the requirement caption in terms of fixed assets value for an organization to manage efficient

operations within the global market framework. Additionally, I want to explore how the term is

applied to by companies to realize increase in profit margin

Explanation

In general, assets refer to anything tangible or intangible, visible or invisible possessions

owned and controlled by business entities and that can convert into cash. In the business sphere,

assets are classified into different categories; majorly into two categories, current assets (short-

term possessions) and fixed assets (long-term assets). Of interest in this discussion is fixed assets

in relation to global market dynamics. Therefore, fixed assets are the units of productions that

are used by business to facilitates the production of goods and services for a period of not less

that one year. In other words, these are the tangible equipment or properties that organization

possess and utilize in its commercial operations to generate income. The term is quite elemental

in the scope of international trade as the margin of return on investment depends of the

investment in terms of assets allocated for the business operations. This term of importance to

organizations that operate on the global platform as it helps them understand how to trade

cautiously.

Discussion
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Among the five considered journals relating to the key term for the discussion, the

analysis will major on “Development and use of fixed/intangible assets in the conditions of

globalization” published in 2016 by Gubová, & Richnák. The paper articulates that the entry of

business entities on the international market in the past three decades has been influenced by

technological revolution, globalization and the availability of resources (assets) to sustain

business operation in stiff competitive market sphere. Gubová, & Richnák also highlights the

importance organization’s strength in terms of assets on influencing the operations within the

global market. The case example given is from manufacturing industries, the distribution of fixed

assets such as land, equipment and machines dictate the influence of a business in the global

operations. For instance, business entities with considerable low assets value cannot fairly

compete with giant organizations with vast factors of production in terms of fixed asset value.

Consequently, most countries have established a bare minimum caption on fixed asset value for

them to gain access and operate within the host’s market sphere. These moves have advantages

and disadvantage on the global market operations. On the positive side, the captions is to ensure

that there is reliability and continuity of supply in the global market while on the negative it

gives limitation to organization’s entry in the international market.

Gubová, & Richnák arguments are supported by Reinsdorf, & Slaughter, (2019), Bragin,

et al (2018) and Popoli, (2015), all who have a convergent argument that fixed assets values

defines the scope of company’s operation in the global market as well as rate of growth in a

competitive space. The argument of all these scholars coincide with the subject matter addressed

by Gubová, & Richnák in that for business to thrive in the global market, it has to adopt specific

strategies of operations that conforms with the international standards for assets acquisition and

movement for it to realize profit margin out of its operations

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Reference list

Bragin, L. A., Ivanov, G. G., Panasenko, S. V., Efimovskaya, L. A., Karashсhuk, O. S.,

Krasilnikova, E. A., ... & Tyunik, O. R. (2018). Globalization of trade based on

innovations.

Gubová, K., & Richnák, P. (2016, October). Development and use of intangible assets in the

conditions of globalization. In 16th International Scientific Conference Globalization and

its Socio-Economic Consequences: proceedings (pp. 572-579).

Linsi, L., & Mügge, D. K. (2019). Globalization and the growing defects of international

economic statistics. Review of international political economy, 26(3), 361-383.

Popoli, P. (2015). Reinforcing intangible assets through CSR in a globalized world. Journal of

Management Policies and Practices, 3(1), 23-30.

Reinsdorf, M. B., & Slaughter, M. J. (Eds.). (2009). International trade in services and

intangibles in the era of globalization (Vol. 69). University of Chicago Press.