Question

How is globalization affecting businesses in the US? Discuss how it is impacting Regional Economic Integration and FDI.

You are expected to:

1. Define globalization the context of an industry / product/ service. It could be your class projects' product/service.
2. Display understanding of Regional Economic Integration, apply it in a situation with an example and also discuss FDI in the context.
3. Discuss the role of IMF and exchange rates briefly.
4. Discuss the role of culture in business across nations.

Answer 1

How is globalization affecting businesses in the US? Discuss how it is impacting Regional Economic Integration and FDI.

Globalization affecting businesses in the US :

• It is mostly effected the U.S and American citizens and it has spread American influence throughout the world.it has opened up more markets for the United States, which in effect helps American companies sell their products worldwide.There has been a rise of multinational corporations and their influence has greatly increased. Globalization also aids in the ability for American corporations to sell their products outside of the country and aids in keeping the nation “on top” or “near the top” economically.
• It has increased the real-time communication abilities between international organizations and nations. This has allowed for a greater emphasis on international cooperation. The world has in a sense become “smaller” because the nations can in a sense communicate easily. This has impacted the United States in situations such as the 9/11 terrorist attacks as well as it has given the United States the ability to communicate with allies as well as enemies in time of peace, but also in time of conflict.
• It is  also allows for cheaper products for Americans to purchase and lower prices. This is due to the cheaper labor that makes the product. These cheaper prices allow for the standard of living for Americans to increase. Though globalization has allowed for the ability for prices to be lower in the United States, there is also the drawback that many Americans have lost jobs to foreign workers who are willing to work for less and in worse conditions. The American work force now has to compete with foreign workers in companies and often is replaced by those who are willing to work for less. Another negative effect is that the United States now has a major trade deficit. Globalization has increased this deficit and the United States has to figure out a way to deal with this deficit if it is to stay the extremely powerful nation it is today.
• These are the affecting business on the u.s.
• And finally every business is either an international business or potentially an international business.
• In every business there is positive, negative and the complex ways are exist.

Impacts on the Regional Economic Integration and FDI :

FDI is investment in the form of a controlling ownership in a business in one country by an entity based in another country,the investment may be made either "inorganically" by buying a company in the target country or "organically" by expanding operations of an existing business in that country.

• Reduction of tariffs (abolition of tariffs and adoption of a common external tariff, in the customs union case);
• Reduction of Non-Tariff Barriers (NTBs) – e.g. this was the aim of the Single Market Programme (SMP);
• Potential greater exchange rate stability, as witnessed in the European Monetary System (EMS);
• Greater efficiency in the allocation of resources, due to increased competition

these are the impact of the economic integration.

Display understanding of Regional Economic Integration, apply it in a situation with an example and also discuss FDI in the context.

Regional Economic Integration happens when nations meet up to frame organized commerce zones or traditions associations, offering individuals particular exchange access to every others' business sectors. It can best be characterized as an understanding between gatherings of nations in a geographic area, to lessen and at last expel tax and non-tax hindrances to the free progression of merchandise, administrations, and variables of generation between one another. The favorable circumstances of financial joining fall into three classes: trade, work, and political participation. All the more explicitly, Economic Integration ordinarily prompts a decrease in the expense of exchange, improved accessibility of and a more extensive choice of products and enterprises, and productivity picks up that lead to more prominent buying power.

Employment openings will, in general, improve because exchange advancement prompts advertise extension, innovation sharing, and cross-fringe speculation streams. Political collaboration among nations can improve due to more grounded financial ties, which can help settle clashes gently and lead to more prominent solidness.

Examples

•    NAFTA (North American Free Trade Agreement): The USA, Canada, and Mexico.

•    EU (European Union): 15 European nations.

•    APEC (Asian Pacific Economic Cooperation Forum) - This incorporates NAFT A individuals, Japan, and China

FDI and Economic Integration

Increased nation size prompts scattered FDI, while improved market availability prompts send out stage FDI. Expanded intra-provincial market openness prompts outside firms to put resources into the local coalition, decreasing item costs, benefits of intra-alliance firms, and expanding absolute excess. Incorporating economies are bound to pick up from improving intra-territorial market availability than from harder outer exchange strategies and may wish to offer speculation motivators to energize FDI by outside firms.

The North American encounters propose significantly progressively humble effects of local exchange concurrences on intra-territorial exchange creation and extra-provincial FDI incitement that is related to the prior phases of the EU mix. In the meantime, there is support for the European discoveries that exchange and speculation effects will vary crosswise over nations inside the incorporating area. These outcomes fill in as an alert against summing up from prior experience when determining the effects of extended monetary reconciliation inside Europe or the Americas. The outcomes of provincial monetary incorporation are adequately adapted by acquired arrangements, just as by existing macroeconomic conditions, to make extrapolation from recorded experience exceptionally unsafe and possibly deceptive.

Discuss the role of culture in business across nations.

As we all know globalization helps in making the world better in connectivity and more compact.

Companies continue to try to expand as much as across the borders and global market place to have more accessibility in different nations. Here culture plays a very important role in all of the business-

1. First and foremost is communication because as we all know whenever we want to do business in any of the countries, effective communication is a success to any joint or business venture.

English is the core language for any country as we all know but if a company has a better strategy to get into the local language of the place where they are doing business then the result is better

2.workplace environment - a different set of people working in business also plays a vital in for a company by having business etiquettes.

3.organisational hierarchy- It is also very important to maintain it, for example, Japan which values the relative status, respect for seniority in the workplace and social equality.