INTERNATIONAL BUSINESS AND GLOBAL CHANGE Essay Example | Topics and Well Written Essays - 4000 words

INTERNATIONAL BUSINESS AND GLOBAL CHANGE - Essay Example This paper throws light on the business of luxury cars. The essay takes into account a sample of 200 countries and then on basis of certain parameters it tries to find out the best markets for high end cars. Luxury car market comprises of the consumers who belong to the elite class of any society. This essay tries to identify the two most potential countries of the world that has the highest proportions of economically affluent people showing special interest in status symbol consumption. Introduction International business is imperative in the world of economic affairs (Moffett, n.d.). This is the era of globalization and liberalization when almost all the companies and firms of the world are going global (LOC, 2007). Manufacturing firms, companies involving arts, music and even the service firms like banks, insurance etc are all enlarging their branches across the world outside their domestic territory. International business help to articulate capital flows, technological skills a nd even employment opportunities across the world. The consumers experience variable choices of different goods and services. The market for goods and services expands in every country with open trading giving its consumers a wide variety of products. International trade also facilitates mobility of the workers in the labour market (Rutgers, 2001). The activity moves to a global level when there is reallocation of productive resources and facilitates preferential choices in business. To suffice the objectives of firms, organizations and people business houses are getting involved into cross border transactions. International businesses have various branches like management contracts, foreign trade, franchising, licensing and also involve foreign institutional investments. In the past 30 years the quantum of international trade has expanded in Billions. Global links have helped largely by improving the living standards and upgrading technology for business. The business and trade pol icies are now integrated together between nations. Like, if the coffee production changes in Brazil then it would affect economies and market all across the world. The sum of global business had fallen slightly around the year 2000 but has again started to grow with globalization accelerating. Trading blocks are formed with rationalization. There is a shift in the pattern of global trade between nations. From the period of 1960’s to 1990’s the requirement of manufactured goods in international trade was much greater than the necessity of raw inputs like rubber, jute. In the recent scenario, emerging economies in the world like BRICS are actively participating in the production of manufactured products. Service sector trading has also incremented in the current period (CIA, 2013). Developing counties like India have almost 30% of its GDP being contributed from the tertiary sector although it was previously a country with almost 80% of GDP coming from primary sector. The main purpose of the project is to understand the extent to which international business acts as a pivotal body of world economy. The trade outflows in an economy are very important to balance its trade account, at a macro level. On the other hand there are many companies operating in the domestic market that are not able to enjoy the fruits of economies of scale in production, with the help of international