Discuss the Key Factors that Companies Must be Aware of Before Deciding to do International Business


Instructions

Globalization, the integration of international trade, investment, IT, culture etc. is not of recent origin. Globalization refers to a fundamental shift in the world economy in which national economies are no longer relatively self-contained entities. Instead, nations are moving toward an interdependent global economic system.

Globalization has two dimensions, viz., globalization of marketplace and globalization of production. As a result, almost all countries of the globe are marching towards international business, the business at international level.

Doing and getting success in international business is not so easy because of differences among countries with respect to political economy, i.e., interdependence of the political, economic, and legal systems of a country. They affect the level of economic well-being. There are some key factors that companies must be aware of before deciding to do international business.

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