INTERNATIONAL BUSINESS AND THE FACTORS AFFECTING ITS GROWTH International business and the global economy play a prominent role in the society. Both have assisted in improving the communication between various countries, both the poor and rich economies of the world. _International business _consists of business transactions, which involves various countries, whereby they exchange different goods or services through the process of buying and selling. (Hill, 2006). International business also known as multinational corporations (MNCs) involves transactions across national boundaries.
It deals with exporting and importing. While globalization on the other hand can be seen as how our lives are linked or connected with that of distant people or countries, either socially, economically, politically. ( Legrain, 2003). It is very natural that every business wants to grow quickly with the minimal cost spent in production process. However, this may not be so easy, especially in business going global, as there are many factors that may possibly affects its growth and development.
The purpose of this essay is to point out some of the challenges that are likely to affect international enterprises. It focuses on both the internal and external factors that may possibly affect these enterprises and precaution these businesses could take. In conclusion, MNCs are greatly affected especially by the microenvironment of their host country. This factors that affects them are really crucial and it is advisable for the enterprise to know more on the environment they wish to compete in.
The global market place can be a threat to enterprises especially small firms willing to expand its operation base. International business can be influenced either positively or negatively. Of all the factors that can influence MNCs, political still has the maximum effect and little technology depending on the kind of firm and their operation strategy. However, MNCs are not only affected by the host country, the also influence the country in a positive way. MNCs create a great bond between various countries and are the strengths to sustaining a friendly relationship amongst nations.
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