The paper "What Does the Term Globalisation Mean in Relation to International Business " is a perfect example of a management assignment. Globalization is the process by which economies of various nations of the world have become integrated into the international economy through a global network of communication, trade and transport. On the other hand, international business is any economic activity that takes place across many nations. Business across nations take place in all fields including banking, insurance, consultation and all any other business that takes place at the local levels.
Globalisation in relation to international business means a world that is characterised by improved technology that has resulted in multinational businesses and higher value of the international trade. This technology and the value of international trade have therefore resulted in the transformation of the national companies into multinational corporations (Jagdish, 2004). This trend is however having an impact on international competition. This is because for business firms to survive in the global market, they have to improve on their productivity. This will require them to employ high technology in their production process, highly skilled labour and efficiency in production.
There is competition in the acquisition of highly skilled labour in the global market, a factor that is scarce. This, therefore, calls for increased incentives to the workers so that the company can retain them. Labour has therefore become expensive in the global market due to competition for the labourers. Competition is also felt in production. Every corporation has to struggle to offer the best products so that they can survive the global competition. Technology has to be increased where all processes of production must remain updated.
The machinery that is used must also be of high efficiency so that they can achieve maximum production. Globalization has also resulted in an international competition for resources.
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