Reasons For Growth In International Business

1. Reasons For Growth In International Business

2. Developments in Communication Technology • Advancements and increase use of communication technology, such as e-mails and videoconferencing. • Customers can also visit a business’s web site in order to see what they have to offer.

3. Developments in Communication Technology • Drawbacks… • Time Zones: A fax sent to Montreal is not likely to be seen form someone in Hong Kong for another 10 hours.

4. Developments in Transportation • Faster means of transportation has also increased international trade. • Goods can be transported around the world in days. The availability of perishable goods such as meat, fish, cut flowers etc. has increased with the use of refrigerated truck or containers.

5. Developments in Transportation • There are a variety of options that businesses can use in order to transport such as ships, railway, trucks, planes, pipelines (for natural gas and crude oil).

6. Freer Borders • Countries that have few barriers for moving goods, services, and resources across their borders become attractive to many businesses in other countries. • Reduction in taxes and other barriers can be negotiated using trade agreements.

7. Freer Borders • The WTO also helps in trade disputes, trade negotiations, monitors trade policies, technical assistance and training for developing countries, and deals with other trade organizations.

8. Business Confidence • Doing business internationally has become less risky, costly, and time consuming. • National and international institutions such as banks and insurance companies have agreements that provide better credit service, insurance against damage and nonpayment, and currency conversion policies.

9. Business Confidence • The Internet has also become safer and many consumers and businesses feel comfortable doing business over the Internet. • Large courier services make deliveries predictable and timely.

10. Global Competition • New products are constantly being introduced more quickly and successfully. • If a product becomes a success and opens a new market, domestic competitors already established in a foreign country or foreign companies may want to capitalize on the new market. (ex: Disneyland in Paris)