In general, the paper 'Will the Future of International Business Be Similar to That in the Past" is a good example of a business assignment. In terms of location and source of growth, the emerging market economies such as China and India will still continue increasing their effect on the world economy. Due to emerging economies, there will be significant development of new opportunities and the efficiency shown by these countries will earn them new markets in developing countries. For instance, China will be the country to watch. It will be viewed as the ‘ new New York’ to the new investors in the global market.
That is, ‘ if you can make it in China, then you will make it anywhere’ . Due to domestic pressures as a result of urban-rural imbalances and weakness in the banking system, the corporation in China will be spreading their wings overseas. India will also be an important participant and a rival to the growth in China due to democratic government, widespread facility with the English language among others. This will increase linkages in the communications and information sectors. Based on the environment, conservation as well as sustainability, China will experience environmental problems which will significantly affect its ability to compete as a centre for global manufacturing.
Rapid growth in emerging economies such as India and China will lead to depletion of natural resources. In addition increase in medical and social costs will lead to a dramatic reduction in firms wishing to invest in China, thus; FDI will be moved to other locations which include Europe and U. S. On the other hand, Africa will provide significant opportunities for green investments as well as carbon credits accumulation. Based on the information, there will be an expectation of fewer sources of data offering increasingly large data quantities due to cost-cutting, mergers and accusations.
Due to such developments, the reliability and accuracy of making the use of data heavily-trust dependent will be affected. Due to transparent sourcing, the willingness of people and firms to offer information will be decreased. In addition, due to more technology, a lot of international business will require a less physical and human connection. Does increased IB mean increased risk? Just as the benefits increase due to increased international business, the risks involved also increases.
Such risks include technological, environmental, economic-financial, terrorism among others. With more and more technology, electronic transactions are facing more risks with regard to security. This will call for more cost in developing technology for fighting insecurity. In addition, given that the new technologies may fail, the result may have a dangerous effect on the conduction of business in the international arena. Increased international business increases economic risks. Increase in the globalisation of business is changing the foreign investments policies leading increased interest rate thus; increasing economic risks.
As the countries become competitive grounds for foreign investors, countries tend to make it difficult for investors to repatriate funds or profits outside the country in order to ensure development within the country. This makes such firms to invest at less optimal levels leading to financial losses.